Price for Alaska oil is strong as new fiscal year begins

6
821
Photo credit: ConocoPhillips

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.

6 COMMENTS

  1. The Biden Administration is responsible for this price! We need Trump back in as he promises $2.00 per gallon gasoline if he returns to power! Alaska is being destroyed by Biden’s driving up the price of oil with his restrictive policies. This state will recapture its glory days if we can get oil back to $22 a barrel! The employment opportunities in this state will be phenomenal if we can get back to 20-30 dollars a barrel! Make Alaska Great Again!

    • You mean he is promising to shut down the country, kill a few thousand more small businesses, close national parks, etc again????
      Because that is why gas was less than $2 while he was pres.🧐

  2. Look at ConocoPhillips profits and stock prices and oil revenue monies to the our state treasury, low oil prices mean disaster to the State of Alaska. I have no problem with removing troublesome regulations. But I have a problem giving loans to drilling and projects that have no potential to make a profit. Remember all the bankrupt companies drilling in Cook Inlet.

  3. Unfortunately if Trump wins, the price of oil will drop dramatically. This is really hurt Iran and Venezuela financially. But also Alaska. Our elected leaders ride this price up and should have been putting away the excess money from the high price of oil but alas again they did not. We will have a crash in the budget.

    Trump will open ANWAR and the rest of NPR but that will take time and the State will be hurting at least a couple of years. Republicans in the State have never tried to cut the budget. Remember what Dunleavey tried in the first year? Every Republican rebelled and he never tried again.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.