West Sak costs now cut 45% Alaska producers are cracking the code in tapping a huge resource of thick “viscous” oil on the North Slope. The latest project, North East West Sak, or NEWS, is now producing above projections and was brought in 45 percent below estimated costs, said officials with ConocoPhillips, which is operating NEWS. The company has three wells producing about 10,000 barrels per day. A fourth well will be operating in mid-September. NEWS was originally estimated to…
Walker proposes Permanent Fund support for economic development For the first time, probably since Walter Hickel was governor, a proposal to use the Permanent Fund to foster economic development has been put forth by a state chief executive. At a campaign forum in Anchorage Aug. 29, Gov. Bill Walker, who is running for reelection, said he would support a small percentage of the $65 billion Permanent Fund, perhaps 1 percent (or $600 million) being set aside to help finance small…
Job losses continue to slow as economy steadies Job losses are steadily decreasing to the point that employment may reach a steady state by the end of the year. State labor economist Neal Fried said employment dropped 0.6 percent in the first six months of 2018, compared with 1.5 percent decline for the first half of 2017 and a 1.9 percent drop for the same period of 2016. During July the job count was down 0.3 percent, an indication things…
Dunleavy may have edge in three-way governor’s race There is now a complex three-way race for governor in the Alaska November general election and the street talk is that Republican Mike Dunleavy, who defeated challenger Mead Treadwell in the August 21 primary, could well emerge the winner. That’s if the Democrat, former U.S. Senator Mark Begich, and Bill Walker, the incumbent running for reelection as an independent, split the Democratic and independent vote, which is expected. Dunleavy racked up 42,223…
Maersk plans test Arctic voyage Maersk, the international shipping giant, is conducting a test run of a freighter through Russia’s Northern Sea Route in the Arctic. Its vessel is to transit the Bering Straits about Sept. 1 en route to Europe. Maersk said it is an experiment but still significant as an indication of interest. What is also motivating the company is that Cosco, the Chinese shipping giant and a major competitor, has been using the Northern Sea Route for…
Mining employment up this year Alaska mining employment is up this year, according to preliminary data from the Dept. of Labor and Workforce Development. The estimate for 2018 is 3,126, up from 3,076 in 2017 and 2,945 in 2016. If the estimate proves out it will be the highest employment in the industry for more than a decade (in 2006 the number was 1,874). State labor economists credit rising mineral exploration activity with pushing up job numbers because the state’s…
Salmon catch passes 100 million Alaska’s Dept. of Fish and Game is now forecasting a harvest of 147 million salmon for 2018, which is within the range of 100 million to 150 million fish caught that is considered the long-term norm. The catch passed 100 million a week ago. The pain this year is caused by a dismal pink salmon catch and a poor sockeye harvest outside of Bristol Bay, which boomed this year. About 42 million sockeyes will be…
State regulation blamed for helping drive up health costs Efforts by state officials, physician groups and health insurers to come up with a compromise on changes to the “80th-percentile” rule on medical payments are still foundering. About 20 people from the different group met in mid-August to explore ideas, but physicians rejected several proposals put forward by state officials. State Sen. Cathy Giessel organized the meeting. We’re told state budget director Pat Pitney sat in. The rule is a state…