Alaskanomics

Oil accounts for 92% of Alaska's general fund spending; highest percentage in history

A new report by Scott Goldsmith for the UAA Institute of Social and Economic Research (ISER) analyzes Alaska's oil revenues and spending since Alaska North Slope oil began flowing through the Trans Alaska Pipeline.

The state has collected $170 billion in oil revenues since 1977 (in today's dollars), and $141 billion of those revenues were initially deposited into the General Fund - accounting for 85% of General Fund revenues since 1977. For 2012, the share was 92% - the highest share ever.

With no personal income or sales tax, and limited revenues from non-petroleum sources, Alaska is highly dependent on one source, and a handful of taxpayers, to fund state government. 

Alaska North Slope crude prices hover at $100 mark for month of June; production down 11% from a year ago

Alaska North Slope crude oil prices bounced around the $100 mark during the month of June, ending the month with a $7 per barrel rally from June 28 to June 29, to $100.21 per barrel. This is still more than 15% off the $120 per barrel prices at the beginning of May. Alaska's oil prices maintained their $15 to $16 differential over West Texas Intermediate crude over the month.

Production in June ranged from a high of about 592,000 barrels on June 12 to a low of 381,000 barrels on June 2 due to planned maintenance. Average production for the month was about 517,000 barrels per day, compared to an average of about 581,000 barrels per day in June 2011 - an 11% decline.

Alaska's FY2013 budget is based on $110 per barrel oil price and an average of 563,000 barrels per day production.