From the Fairbanks Daily News-Miner, “Resources help Alaska weather recession but all is not ‘sunshine and lollipops’,” Jan. 17, 2010.
Quoting Jonathan King, principal and senior economist with Northern Economics Inc., in his presentation before the Greater Fairbanks Chamber of Commerce:
“We are truly, and have been, very lucky the last couple of years.” Nevertheless, oil production is down and the decline shows no signs of slowing or stopping, King said. To balance the state budget, Alaska had to sell it’s oil for at least $64 per barrel in 2010, $77 in 2011 and $94 in 2012, King said. A projected price of $97 per barrel is needed for 2013. “As you can see, we can no longer afford our state government on $50 a barrel oil. That’s just not possible for us,” King said. “It’s pretty scary, and the window is closing. … 2012, not so bad — 2013, we’ve got concerns about. Due to declining production in oil and reduced federal spending, we face strong headwinds,” King said.