What Would Direct LNG Exports Mean for Alaska?
Big news came from the Point Thomson Unit (PTU) today. Exxon has entered a Heads of Agreement with Qilak Energy to sell the long-stranded natural gas from the technically challenging reservoir via direct exports. While it is still far too early to say for sure what all this means, I’m […]
The Official FY19 Oil Production Numbers are in
The Alaska Oil and Gas Conservation Commission (AOGCC), the state agency which tracks oil production across Alaska, has released the last of the FY19 oil production data. All production companies are required to report the amount of oil, gas, and water they take out of the ground to AOGCC each […]
Alaska Might Be Benefiting from Oil Sanctions
Alaska North Slope (ANS) oil has been selling at a premium to Brent for nearly a year, and we are seeing millions of dollars of added benefit as a result. The mostly likely cause is oil sanctions on Iran and Venezuela. Let’s explore the situation. Refinery Inputs Each refinery is […]
Guess Where Alaska Stands in the Oil Race
Back in the 1980’s Alaska was a powerhouse in the oil market. At the time, our young oil fields were the envy of our peers. Texas production was falling, approaching 2 million barrels per day from above as Alaska approached the same mark from below. Briefly, Alaska challenged Texas as […]
Alaska North Slope 10-Year Oil Production Forecast
I gave you my projections of how oil production on the North Slope will look next fiscal year. But, the question most people really have is “what happens after that?” We’ve all heard about some major projects that are coming. So, what will that mean for the amount of oil […]
A First Look at FY20 Oil Production
The Alaska Department of Natural Resources should be done with its production forecast. Over the next few weeks, The Department of Revenue will insert that forecast into their revenue model and discuss things with treasury, the APFC, and OMB. Ultimately, they will publish the Revenue Sources Book along with the […]
What Will GMT1 Produce For The State Budget?
ConocoPhillips Alaska did a great job of getting the first Greater Moose’s Tooth (GMT1) development into production, ahead of schedule and under budget. We are all excited to have the new oil flowing. It signals the beginning of another renaissance for the North Slope. But, the oil is coming from […]
A Silver Lining on Alyeska Layoffs
Earlier this month, Alyeska Pipeline announced that they were going to layoff 130 people, as part of a reorganization effort to cut costs. As much as I hate to see people lose their jobs, there is a silver lining for the rest of us. When the cost of transporting oil […]
Here is How Much Money Oil Companies Make in Alaska
One of the things that I’ve heard over and over again, is that there is a lack of transparency in Alaska’s oil taxes. How do we know if the current tax law is “fair” and “equitable” to all parties when we aren’t allowed to see how much money they are […]
Production is Up. Does that Mean SB21 is Working?
When the 28th legislature narrowly passed SB21 in 2013, I was working as a policy analyst for the Department of Revenue. I still remember the late night committee hearings and the frantic preparation of fiscal notes. At the end of the day, the bill was named the “More Alaska Production” […]