Browsed by
Category: Econ 3-19

Economic Report 3-19

Economic Report 3-19

March 7, 2019 In this Issue: Governor’s budget shakes business confidence Uncertainties now cause projects to be delayed Legislators are not about to accept Dunleavy’s budget, and will write their own Infrastructure Skagway dock options eyed Transportation Truckers’ big economic clout Plan to delay ferry service cutoff Energy Southeast hydro: Low water GVEA drops Eco-Green deal Rural renewable energy program UA’s new power plant to fire up State gas project “shutdown”: Sending a signal? Talks underway with two of three…

Read More Read More

Seafood

Seafood

Large new mariculture projects The public comment period closed March 1 on applications for new state mariculture sites including two large oyster farms in South- east Alaska. One is a proposal for a 182-acre farm by Sitka Sound Seafoods, an established seafood processor in Sitka. Another farm is proposed at a 127-acre site near Prince of Wales Island near Ketchikan. If approved and developed these are the largest oyster farms in the state. To date the largest farm is 26…

Read More Read More

Timber

Timber

New Southeast harvest contract The state of Alaska signed a contract to sell timber to ALCAN Timber Inc. to do harvest- ing at a site at the northeast end of Gravina Island, near Ketchikan. The company will pay $2.1 million to the state for three years of harvest rights in the Vallenar Bay timber sale. The project involves about 16 million board feet of timber to be harvested from 481 acres of state and federal lands. A federal policy, the…

Read More Read More

Minerals

Minerals

Another step for big Donlin project The state Department of Natural Resources is- sued a proposed right-of-way lease for a 315-miless pipeline to transport natural gas to the Donlin Gold project in the mid-Kuskokwim River area northwest of Anchorage. Donlin Gold, a joint-venture of Bar- rick Gold and NovaGold Resources, hopes to build a large surface gold mine with energy to be provided by gas shipped from Cook Inlet. Correction: We incorrectly reported last issue that thirteen tribes filed suit…

Read More Read More

Petroleum

Petroleum

Slope production dips this winter North Slope oil production is running sub-stantially lower this winter compared with last year, according to state Department of Revenue production data. The problem ap- pears to be in the Nikaitchuq field operated by Eni. Total slope production averaged 517,227 barrels per day in February, down 31,204 barrels per day from the February 2018 average of 548,431 barrels per day. In January, slope production averaged 525,075 barrels per day, down 17,335 barrels per day from…

Read More Read More

Business Intelligence

Business Intelligence

Anchorage’s housing appears stable, but there are challenges Anchorage’s housing market is stable, which is a good sign in the current economy, but housing experts also call it stagnant in terms of the pace of new building needed to replace aging properties and to develop types of housing in demand in the city’s changing demographics. A lot of this came out in a presentation on housing in Anchorage on March 5 sponsored by Common Ground, a volunteer policy group. Real…

Read More Read More

State gas project “shutdown”: Sending a signal?

State gas project “shutdown”: Sending a signal?

Was this a signal? Alaska Gasline Development Corp.’s CEO, Joe Dubler, told state legislators the state corporation is prepared to shut down the big Alaska LNG Project if customers or investors are not lined up, but there was no timetable on a decision. Some think the statement, widely reported, was a signal to potential partners that time may be limited for Alaska LNG and that decisions should be made. Sinopec, the major Chinese energy company, is considering buying LNG from…

Read More Read More

Energy

Energy

Southeast hydro: Low water Ketchikan, Wrangell and Petersburg electric utilities have had to fire up diesel generators due to low water levels at Lake Tyee and Swan Lake, which supply hydro plants. Fuel supplier PetroMarine agreed to give Petersburg a special price of $2.55 per gallon in recognition of the situation. GVEA drops Eco-Green deal Golden Valley Electric Association of Fair- banks has suspended its analysis of a proposal from Colorado-based Eco-Green Generation to sell wind and propane-fueled power to…

Read More Read More

Transportation

Transportation

Truckers’ big economic clout Truckers in Alaska put a lot of money into the economy. Data presented to state legislators in Juneau in early February by the Alaska Truck- ing Association showed that trucking companies paid $700 million in wages to employees in 2017 with an average salary of $56,250; there were 2,640 heavy and tractor-trailer truck drivers employed that year in the state. In 2016 the industry paid $53 million in federal and state road- way taxes. Companies paid…

Read More Read More

Infrastructure

Infrastructure

Skagway dock options eyed Engineers have developed five options for a new floating dock for Skagway, with costs rang- ing from $18 million to $26.5 million. White Pass and Yukon Route, which owns Skagway’s docks, is leading the work. KPFF Consulting developed the scenarios and cost estimates. Al- ternatives range from a lighter floating dock to a heavier, concrete floating unit that would handle heavier loads. A steel floating dock is another option, although it would require more mainte- nance,…

Read More Read More