Oil production from Alaska's declining North Slope fields is expected to fall 4.5% this fiscal...


Oil production from Alaska's declining North Slope fields is expected to fall 4.5% this fiscal year after tumbling 70% since peaking at 2.1M bbl/day in 1998, posing a growing dilemma for the state's finances. Something's gotta give: Alaska collects no personal income or sales taxes, relying on oil taxes, royalties and fees for up to 93% of state revenue.

Comments (2)
  • Joseph P. Porter
    , contributor
    Comments (899) | Send Message
     
    Perhaps this is an unanticipated down-side to relying on oil and natural gas (and other mined commodities). There is no infinite supply to anything (except greed, perhaps), and when it's gone, folk who relied on the money from extracting commodities are going to be casualties. There's no market for snow.

     

    Where do the Alaskans go when the well runs dry, so to speak?
    7 Dec 2012, 04:45 PM Reply Like
  • davidbdc
    , contributor
    Comments (3194) | Send Message
     
    Well, when the wells run dry they will simply dig up as much gold as possible. After that who knows.

     

    But in the short term they will simply allow more drilling. Much of the decline in production is simply because of the restrictions and the amount of land "off limits".

     

    There is a lot more oil in Alaska.... as well as gold.
    7 Dec 2012, 05:22 PM Reply Like
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