OIL & GAS
Is Alaska Oil Measuring Up? How our oil industry compares to other oilproducing states By Julie Stricker
F
or decades Alaska's economy has been defined by the oil and gas industry. Even though production peaked in the ‘80s and has been declining ever since, the industry is still the 49th State's largest economic driver in the private sector, says Kara Moriarty, president and CEO of Alaska Oil & Gas Association. The industry funds the bulk of the state budget, and Alaska residents get an annual dividend from the state's oil royalty revenue in the Alaska Permanent Fund. That's a more direct impact than any other oil-producing state, such as Texas, New Mexico, North Dakota, California, or Colorado, which all have much more diversified economies. Those five states also all have some combination of state income and sales taxes, which Alaska lacks. And while 6 of the top 100 largest oilfields are found in Alaska, according to the US Energy Information Administration (EIA), the state's remoteness and distance from markets, as well as its extreme climate, set it apart from other oil producers. There are also vast differences in transportation, costs, and technology between Alaska and the Lower 48 oil producing states.
72 | June 2021
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