Alaska North Slope crude oil ended the fiscal year at $86.46 a barrel on Friday. It’s significantly higher than the revised revenue forecast issued by in March by the Alaska Department of Revenue, which predicted Alaska oil selling at an average of $78 per barrel for the upcoming fiscal year that begins Monday.
The mid-80s price is a strong start for the State of Alaska’s revenue picture. Oil is Alaska’s second top source of state revenue, following the annual transfer of earnings from the Alaska Permanent Fund.
Oil into the Trans Alaska Pipeline System is expected to increase for the upcoming fiscal year by about 13,100 barrels per day, according to the Department of Revenue. With new fields being developed by ConocoPhillips and Santos, and investments in existing fields being made by Hilcorp, the outlook for 2026 and 2027 could see the trend continue.
Alaska’s oil and gas jobs grew by 700 year over year in May, according to a recent Alaska Department of Labor report, which reported the increase at 9.5%. Every oil and gas industry job supports 15 additional jobs in Alaska, according to a study by McKinley Research Group. Some company leaders say that the oil sector is bustling this year.
Last week, oil going into TAPS dropped to just under 400,000 barrels per day, as annual summer maintenance schedules have begun on the North Slope. This is a normal cycle for the Alaska North Slope oil sector.
Adding credibility to the prediction of Alaska oil prices remaining stable in the coming year is the June 27 issuance of U.S. sanctions against Iran over its nuclear ambitions.
“Over the past month, Iran has announced steps to further expand its nuclear program in ways that have no credible peaceful purpose,” Blinken said. “We remain committed to never letting Iran obtain a nuclear weapon, and we are prepared to use all elements of national power to ensure that outcome,” U.S. Secretary of State Antony Blinken said in a statement.
The sanctions target companies based in the United Arab Emirates and 11 vessels used in the export of Iranian petroleum or petrochemical products.
