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[…]
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[…]
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[…]
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[…]
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[…]
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 non-State land in the NPR-A.[…]
On July 31st, 2018, ConocoPhillips released its second quarter 2018 10-Q, which was filed with the Securities and Exchange Commission (SEC). A couple weeks later, the Legislative Research group released a table which showed the production levels and net income that the ConocoPhillips filing reported. The table also included a statistic in which the total[…]
I recently saw a social media post that said something to the effect of “the reason the State is broke is because of the oil tax giveaway back in 2013.” At the same time, I see pro-industry ads talking about how the same tax reform has led to an increase in production and all the[…]
We peg the beginning of the Alaska recession at October of 2015. That is the point we identify as when the general economy began a downward trajectory. Prior to October 2015, we can identify some leading indicators that the economy was in trouble. But the data doesn’t show the economy as declining until that point.[…]
If a bat and a ball cost $1.10 together, and the bat costs $1 more than the ball, how much does a ball cost? This is a classic riddle. I’m assuming you’ve seen it before. If you’re like most people, your mind quickly came up with $0.10 for the ball. Even if you’ve heard the[…]