Alaskanomics

Video Clip: Norway's Oil Minister discusses oil taxes, revenue and cost sharing for oil production

Norwegian Minister of Petroleum and Energy, Ola Borten Moe, talks about elements of oil production fiscal terms. Norway has a 78% marginal tax on income taxes, and a government share of every license. The government also shares in the costs of research and development according to their share in the license. In Norway's system, oil companies can deduct all expenses over a short period of time. 

Moe was speaking at a Northrim Bank Oil and Gas Speaker Series event in November 2011 in Anchorage presented by the Alaska World Affairs Council.

Click here to see the upcoming schedule in the Northrim Bank Oil and Gas Speaker Series.

 

Video Clip: AGC’s John MacKinnon: Mine development in Alaska is affected by long lead times and environmental litigation, but outlook is optimistic

John MacKinnon, Executive Director of the Associated General Contractors (AGC) discusses long lead times, access, and energy as factors in Alaska Mine development at the AGC Alaska’s Construction Spending Forecast in February 2012. Click here to view the full report.

 

Video Clip: In the oil and gas industry, maintenance spending, rather than new production spending, is expected to continue in 2012

Construction spending in the oil and gas sector as it relates to exploration vs. maintenance is discussed by Economist Scott Goldsmith from UAA’s Institute of Social and Economic Research and John MacKinnon, Executive Director of the Associated General Contractors (AGC) at the 2012 AGC Alaska’s Construction Spending Forecast in February 2012. Click here to view the full report.

Video Clip: Cook Inlet oil and gas development activity is expected to be up in 2012

Cook Inlet oil and gas development activity is discussed by Economist Scott Goldsmith from UAA’s Institute of Social and Economic Research. Scott was speaking at the Associated General Contractors Alaska Construction Spending Forecast for 2012. Click here to view the full report.

 

Video Clip: AGC’s John MacKinnon: Regarding Alaska hire on the North Slope, Point Thomson is a project that is being done right

The Point Thomson project on the North Slope and Alaskan hire is discussed by Associated General Contractors (AGC) Executive Director John MacKinnon in this clip from the AGC 2012 Alaska Construction Spending Forecast in February 2012. Click here to view the full report.

Video Clip: The “Roads to Resources”, ultimately the road to Nome, will require thinking long-term and big in Alaska

John MacKinnon, Executive Director of the Associated General Contractors (AGC) discusses the “Roads to Resources Program”; one piece of the referred-to map can be downloaded here: North Slope Oil & Gas Activity Map. This was part of the AGC Alaska Construction Spending Forecast presentation from February 2012. Click here to view the full report.

 

Video Clip: Projected Construction Spending in the Oil & Gas Sector

Scott Goldsmith, Economist with the Institute of Social and Economic Research at UAA discusses projected construction spending in the oil and gas sector in 2012 during the Associated General Contractors’ annual Alaska Construction Forecast presentation in February 2012. Click here to view the full report.

Alaska's Electricity Costs 5th Highest in Nation; gas leads generating capacity

Alaska's average retail price for electricity was 14.76 cents per kilowatt hour (cents/kwh) in 2010, the latest data released in new information by the U.S Energy Information Administration. The U.S. average was 9.83 cents/kwh. Hawaii leads the nation with costs just over 25 cents/kwh; other state with higher costs than Alaska include Connecticut, New York and New Hampshire. The cheapest power in 2010 was in Idaho, with an average retail price of 6.10 cents/kwh.

Alaska generates electricity primarily with gas, followed by hydro and diesel. The ten largest plants by generating capacity in Alaska for 2010 were:

Read the full report here.

Alaska's total state personal income unchanged in 3rd Quarter; U.S. up slightly

Total personal income for Alaska was $32.6 billion in the third quarter of 2011, according to data released by the U.S. Department of Commerce Bureau of Economic Analysis. The U.S. grew 0.1%. Growth rates ranged from -0.4 percent in West Virginia to 0.6 percent in Washington State. Personal income fell or was unchanged in 20 states and grew 0.2 percent in the other thirty states.

In Alaska, decreases in government transfer payments were matched by increases in net earnings, dividends, interest and rent.

The largest percentage increases in wages and salaries were in the following industries:

• Administrative and waste services up 3.2%
• Professional, scientific and technical services up 2.2%
• Health care and social assistance up 1.4%

The largest declines in wages and salaries were in the following industries:

• Information down 2.6%
• Construction down 2.2%
• Mining (including petroleum) down 2.0%

 

 

Forbes: Alaska's energy tax structure is among "Worst in the World"

At the Anchorage Economic Development Corporation annual economic forecast luncheon, keynote speaker Steve Forbes characterized Alaska's energy tax structure as one of the worst in the world - second only to North Korea. Forbes believes that oil prices will not stay above $100 per barrel forever, and suggested that a "sensible" tax structure will attract more capital and result in more long term revenues to Alaska.

Forbes, chairman and editor-in-chief of Forbes Media, also believes the U.S. could be a major energy exporter, saying "The abundance (of energy resources) has barely been scratched." With a changes in Congress that Forbes predicts will take place in the fall elections, he said it was possible that ANWR could be opened to oil exploration and development.