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Current News

June 30, 2019: As many expected, Gov. Mike Dunleavy took an axe to the state budget with his line-item vetoes announced Friday, June 28. The governor slashed $370.5 million in state general fund expenditures, which when added to $280 million in cuts made by the Legislature this spring, brings a total reduction for the Fiscal 2020 budget to approximately $678 million. Within that, the biggest cut was $130.2 million for the University of Alaska, which UAA president Jim Johnsen said…

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Check out our private and confidential reports

Check out our private and confidential reports

We preview upcoming private and confidential reports. Contact us for information on our weekly Alaska Legislative Digest and biweekly Alaska Economic Report. Past 2018 content for the Alaska Economic Report is listed below by date published.

Economic Report 1-19

Economic Report 1-19

Jan. 31, 2019 In this Issue: New progress for big Donlin Gold project Companies commit to new work, $322 million bond Dunleavy dividends: $2.4 billion yearly to economy? Transportation New Arctic port, route study Bypass mail test program is off New ferry in service in May Infrastructure Money to complete Nenana bridge Mat-Su’s rail project still pending Governor wants producers back in Alaska LNG Project Legislature convenes in Juneau, but House still not organized Business Intelligence Anchorage feels sticker shock…

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Economic Report 20-18

Economic Report 20-18

Dec. 28, 2018 In this Issue: ANWR: $3 billion a year to state?What if ANWR has no oil? Geologists’ views differPolar bears will be point of contention in ANWR Jobs: Petroleum workforce shows first increase since 2015 InfrastructureCruise tax decision a dilemma TourismPetersburg debates cruise toursFairbanks delays hike in hotel tax TelecomHigh-speed internet in Nome Business IntelligenceGovernor cites lower oil prices in budget planIs governor setting the stage for budget cuts?Earthquake damage in Southcentral more extensive than first thoughtFew Southcentral…

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Economic Report 19-2018

Economic Report 19-2018

Dec. 10, 2018 In this Issue: NPR-A oil production will hit state budget by $250 million/year Mechanical contractors, others busy in Southcentral:Earthquake refocuses attention on building standards Energy:Juneau’s AEL&P to remain U.S.Delay for Tacoma LNG fueling Health Care:Payment problems for nonprofits Infrastructure:Emmonak dock to be completed Telecom:New satellite contract is signed Politics:New Gov. Dunleavy fills out his leadership teamFeige at Natural Resources; MacKinnon at DOTPF; Tangeman at Revenue Quick at Administration, Crum at H&SS; Brune at Environmental ConservationClarkson is AG; Price…

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Economic Report 18-2018

Economic Report 18-2018

Nov. 26, 2018 In this Issue: PoliticsWelcome, Governor-elect DunleavyOil prices, production both decline; could PFD plan imperil budget?Dunleavy set to take over; cliffhangers on House, Senate organizationWhat business is telling Gov.-elect Dunleavy Tourism, from Scott Habberstad (Alaska Airlines)Minerals groups, from Karen Matthias (Alaska Producers Council)Timber, from Owen Graham (Alaska Forest Association)Fisheries, from Ricky Gease (Kenai River Sportsfishing Association)Oil and gas, from Karen Moriarty (Alaska Oil and Gas Association) Health Care:80th-percentile rule changeACA enrollment expected upAlaska care is most costly Energy:Low…

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Minerals

Minerals

Pebble EIS now mid-February The U.S. Army Corps of Engineers said the release date of the Draft Environmental Impact Statement for the big Pebble copper/gold/molybdenum mine was pushed back from late January to mid-February. The DEIS is an important federal regulatory step for Pebble. Meanwhile, Pebble Partnership, the development company, has set out its best estimates for the number and types of operations jobs if Pebble is developed: Estimated direct and contract jobs Mine 290 Process plant 240 Support operations…

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Energy

Energy

New co-gen, wind for Fairbanks? Golden Valley Electric Association, Interior Alaska’s power utility, is looking at a proposal from Eco Green Generation of Monument, CO, an independent power producer, to generate 55 megawatts of power for GVEA. EGG proposes to add 11 cogeneration units in the Fairbanks area, each unit producing five megawatts using liquefied natural gas or propane. The units would be near large commercial buildings to allow waste heat to be used by the buildings. The proposal includes…

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Petroleum

Petroleum

Prudhoe output dips 10,000 b/d Prudhoe Bay field production dipped in 2018 but overall North Slope production held generally stable, state officials told legislators in briefings. Total slope production averaged 501,569 barrels per day for the July-through-November period down slightly from 502,8995 barrels/day that had been forecast. For the previous 12 months of Fiscal Year 2018, production averaged 520,037 b/d, down from 527,912 b/d for the previous 12-month period of Fiscal Year 2017. Prudhoe Bay experienced a 10,000 barrels/day reduction…

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Business Intelligence

Business Intelligence

Anchorage feels sticker shock with new $2 billion port repair cost Anchorage officials are feeling sticker shock over the estimated doubling of repair costs at the Port of Alaska, from about $1 billion to $2 billion. The new figure is an extrapolation of a revised, more detailed, estimate of a phase one of the project, which increased from $124 million to $223 million. Phase one is a new petroleum and cement terminal. Higher phase one costs, when analyzed, were then…

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Legislature convenes in Juneau, but House still not organized

Legislature convenes in Juneau, but House still not organized

The state Legislature convened on Jan. 15 on schedule but the body is only partly functional because the state House is mired in a 20-20 stalemate between Republicans and 16 Democrats aligned with two Republicans and an independent, and one Republican refusing so far to join either faction. Without one group or the other having 21 votes, or ideally more to assure a margin of control, the House cannot elect a Speaker and do ordinary legislative business. The Senate is…

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Governor wants producers back in Alaska LNG Project

Governor wants producers back in Alaska LNG Project

Gov. Mike Dunleavy has initiated a “full project review” of Alaska LNG, the state-led major gas project, a spokesman for the Alaska Gasline Development Corp. told us. “We will complete the Alaska LNG project permitting process with the Federal Energy Regulatory Commission (FERC), continue commercial negotiations with potential customers, and seek private sector partners to help advance the project and share in the risk,” AGDC said in an email. Meanwhile, sources reported that talks are underway between the state administration…

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