November 2020 was a month of resolving uncertainty and moving back toward normal. Alaska’s economy still faces significant headwinds, but recovery is in sight. Here are some of the highlights. Alaska’s labor market improved, but is still hurting The Alaska Department of Labor reports that Alaska’s official unemployment rate is back to pre-pandemic levels. The[…]
After all the craziness of negative prices last month, a reader asked if I would write an article explaining how pricing Alaska’s crude oil works. That seems like a good idea, although I can’t do it in one digestible piece. So, the plan is to write a three-part series that can act as an educational[…]
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[…]
March was a crazy month. It’s almost unbelievable how quickly the world changed in response to the COVID-19 pandemic. Here are some quick highlights about how Alaska’s finances and economy were impacted by the pandemic. The Stock Market Collapsed March began with the Dow at 26,703. By the end of the month, it was down[…]
Here is your monthly update on some of the things that impacted Alaska’s finances and economy. The Legislature Gaveled In on January 21st The primary responsibility of the legislature is to appropriate the money needed to run the state government. Unlike last year, the House Finance Committee got right to work. The subcommittees are currently[…]
Now that the holidays are over, it’s time to turn our attention back to Alaska’s financial problems. Here are some of the highlights of what happened in December 2019. The Governor Released His FY21 Budget Proposal The governor rolled out his proposed FY21 budget on December 11th. To the surprise of many observers, Governor Dunleavy[…]
Here is your free monthly update on what’s going on in Alaska’s economy. The Labor Market Keeps Improving According to the Department of Labor numbers released last week, Alaska extended its winning streak to 12 consecutive months of job growth. The jobs count in September 2019 was a total of 2,000 jobs higher than in[…]
A lot happened in Alaska during the month of August. Here’s the run down on how we read the headlines. BP and Hilcorp Agreed to Terms on Alaska Assets The news that broke the internet in Alaska last week was a press release from BP. They announced that they were selling all of their remaining[…]
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 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[…]