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[…]

Alaska by the Numbers – October 2019

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 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[…]

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[…]

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 budget in early December. There[…][…]

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 non-State land in the NPR-A.[…][…]

Are ConocoPhillips Profits Really Highest in Alaska?

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[…]

The 2015 Alaska Recession – By the Numbers

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.[…]

Don’t Listen to Sound-Bites, Oil Production is Up

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[…]