Essential thinking

Alaska oil and gas production linked to states economy

07 Jul 2015

Gas pipes through a snowy scene

When Governor Bill Walker of Alaska recently addressed budget problems caused by falling oil and gas prices in his state, the governor cautioned investors that it’s “not a sinking ship.” In turn, Governor Walker said that crude oil production in Alaska continues at a record-setting pace, even while global energy prices are on the decline. The result, say economists, is a change in how crude oil will be selling in the future, with a growing emphasis on electric powered motor vehicles.

Alaska bets on drilling for its future…

Another aspect of oil and gas production in Alaska is linked to a contingency plan for the state if oil prices do not recover. The plan places a greater focus on a new natural gas pipeline. While the pipeline has delayed, it is now on a “fast-track,” states Governor Walker, with a completion date in 2023. The governor thinks Alaska’s natural resources will be safe and protected, because there is so much at stake for both the state and the nation.

State famous for “green” protection…

According to the state’s economic forecast, Alaska has untapped and accumulated wealth when it comes to untapped natural gas and oil reserves. While oil production has slipped during 2015, the governor forecasts more new wells being drilled than a generation ago, when environmental concerns forced less production of these natural resources. Still, there is a concern from the state’s massive “green” environmental movement to “Keep Alaska Green” by shutting down old oil wells, and banning any new gas or oil production that could endanger the local environment and wildlife.

Alaska has distinctive natural resources…
Overall, the state of Alaska will continue to be a major player when it comes to gas and oil production; because its governor credits its political culture and history. Moreover, Alaska’s economy is being closely linked to these natural resources for its livelihood.