Thoughts on Alaska Oil & Gas

Institute for Social and Economic Research (ISER), University of Alaska Anchorage: “Alaska’s Petroleum Industry:  Transformative, But Is It Sustainable,” April 2011.

The above analysis from ISER provides an  excellent overview of the fundamentals of both Alaska’s current economy and its future outlook. Oil production has built the Alaska economy, but extending the current production and revenue numbers past 2020 reveals “a story of significant decline.” What does that mean for Alaska and Alaskans? Read the easy to understand ISER analysis at the following link.

The following is from an exchange on Facebook this morning on Alaska’s Capital Budget. It begins with a post from me.  (If interested in participating or following, the Facebook link is http://on.fb.me/iBT2bs).

Alaska’s Future| The Capital Budget is so far over the edge, you might not only be able to “see Russia” from it, parts of it actually might be in Russia. Alaska’s “Fiscal Conservatives”? — missing in action; not one — not one — R voted against this disaster (see http://bit.ly/l2k6mh for the roll call, page to the bottom). Continue reading →

Somedays, you just need to have a sense of humor.  Senator Hollis French Wednesday issued a press release with the following headline: “Alaska Ranks Second in Nation for Friendly Business Tax Climate:  New report puts Alaska ahead of 48 other states in overall taxes surrounding businesses.”    Seriously, the release says “overall taxes.” Continue reading →

From yesterday’s Alaska Star, courtesy of today’s Alaska Dispatch (“MEA board moves ahead on new $200 million power plant“).

MEA moves ahead with plans for $200 million Eklutna power plant … Gas source still hazy … Continue reading →

An article in this week’s Economist brings back to mind a thought that occurs from time to time. The article discusses the emerging response of the Inupiat throughout the Arctic to resource development. Arctic resources: Now it’s their turn, Economist, Mar. 3, 2011.

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A piece in the Fairbanks Daily News-Miner last week deserves discussion.   The piece summarizes recent testimony before Senate Finance and the reaction of one Senator as follows: Continue reading →

Yesterday’s Anchorage Daily News had an interesting quote from Democrat Representative Berta Gardner in one of the stories on ACES.  See Prominent Alaskans back oil tax relief: Legislature, Anchorage Daily News, Feb. 23, 2011. Continue reading →

In a major piece in the current edition of Foreign Affairs, two fellows at the Brookings Institute, argue that, as part of its efforts to constrain Iran, the US government should encourage China to shift its focus from deepening its involvement in the development of Iran’s oil and gas resources, to increasing its participation in US projects.  Getting China to Sanction Iran, Foreign Affairs, March/April 2011.

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A recent book by Pauline Jones Luong (Brown University) and Erika Weinthal (Duke University) is a good read, with implications for Alaska.  Oil Is Not a Curse: Ownership Structure and Institutions in Soviet Successor States, Cambridge University Press, 2010.

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The Alaska Dispatch this morning has a good summary of the current status of ACES reform. See Do Alaskans care about changing the state’s oil tax?, Alaska Dispatch, Feb. 22, 2011. Continue reading →