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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[…][…]
The Department of Revenue puts out a forecast of state revenues each December, which serves as a companion to the budget. The latest numbers are a few months old now, and an update should be released next month. However, the Spring update usually focuses more on adjusting the budget year than the long-term outlook. The[…][…]
Many Alaskans have probably heard something about the oil tax initiative called the “Fair Share Act.” You may have been asked to sign a petition while shopping, or you may have read something about it in one of the media outlets. You are likely to see it on the ballot when you vote this November.[…][…]
The Alaska State Legislature will gavel in tomorrow at 1pm. It should be a busy session, but the primary responsibility of the elected officials is to pass a budget. The governor submitted a starting place for them to consider – $4.5 billion of UGF spending. The finance committees will get to work and ultimately pass[…][…]
If you haven’t read Isaac Asimov’s “Foundation” trilogy, you should. He introduced the world to the idea that although the individuals within a system are unpredictable, the general direction a society is moving can be seen coming like dominos falling. Last post, I offered some of my own psychohistory projections about how I see the[…][…]
If you were on social media at all last week, you probably got your fill of reflections, resolutions, and predictions. Everyone wants to talk about what happened in 2019 and what 2020 will bring. But, we didn’t just turn the calendar this year – we changed decades. So, just for fun, here are some predictions[…][…]
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[…][…]
On Monday, ISER gave a presentation that suggested the vetoes would cost the economy 4,217 jobs and would send the State whirling back into a recession. I disagree. While it’s ok for us to have different ideas, only one of us will be right. Unfortunately, most people don’t care to find out why our ideas[…][…]
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 flowing down the pipeline? (a[…][…]
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 budget in early December. There[…][…]