Today marks the official anniversary of the completion of the Trans-Alaska Pipeline System (TAPS). 40 years ago today the first oil flowed to Valdez through TAPS. This was the culmination of a three year, $8 billion project that employed approximately 70,000 people during construction.
In the past 40 years, more than 17 billion barrels of oil have been produced on Alaska’s North Slope. Through 2016, the oil industry has invested more than $55 billion in Alaska. In many years, oil has funded 90 percent of the state’s unrestricted General Fund and generated more than $180 billion in total state revenue. Today, oil revenues account for approximately 67 percent of unrestricted General Fund revenue.
There is no doubt about the impact that the oil and gas industry has had on Alaska’s economy. Prudhoe Bay has exceeded initial projections and is the third-largest oil field in the US by proved reserves. Despite low oil prices, 2016 was the first year in a decade that had increased production through TAPS. This year is expected to have another increase. If the prediction holds true, it would be the first time with 2 years of increased production since 1988.
As we celebrate the Summer Solstice, we think about all that TAPS has brought to Alaska’s economy. The longest day of the year brings life and growth, just as TAPS has brought life and growth to Alaskans throughout the state. Many have their own stories of working on the pipeline or coming to Alaska for a fresh start. The same fresh start that we feel on Solstice as we look forward to the coming summer season. Happy Anniversary to the Trans-Alaska Pipeline System and all who have helped to make it a lifeline for Alaska.
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