What Happened to Oil and what Happens Next?

A barrel of Alaska North Slope (ANS) crude oil was selling for $22.47 at the time this article was written. That’s down 67% from the beginning of the year. In terms of the state’s royalty oil, that price swing represents a reduction of almost $3 million per day. For the producers, it means that they[…]

Alaska is Unique When it Comes to Oil Ownership and Taxes

Around the globe, there are two basic systems governing the ownership of oil. In the first, resources are owned and controlled by the government. In the second, personal property rights extend all the way down to the core. The difference between the treatment of subsurface mineral ownership has far reaching implications. And, Alaska finds itself[…]

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 sure the question on everyone’s[…]

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 month. Those numbers are all[…]

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 designed to manage a certain[…]

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 the number one oil producing[…]