Economic Report 11-19

Economic Report 11-19

In this issue we contemplate the budget mess in Juneau on our economy, UA’s Board of Regents declaring a financial emergency, delay of port reconstruction in Anchorage and much more

Fisheries

Fisheries

Halibut harvests headed lower? Halibut harvest quotas will likely be headed lower, based on fisheries survey data and analyses of the 2019 harvest provided to the International Pacific Halibut Commission, or IPHC. Halibut stocks are down 4 percent and the average weight of individual fish is down 5 percent. The numbers of spawning halibut continue to be down, continuing a multi-year trend, scientists told the Commission, which met in Seattle. The IPHC will set harvest quotas in February. Halibut sell…

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Energy

Energy

Lower power line repair costs? Homer Electric Assoc. is now replacing power transmission poles along the “SQ Line” damaged by the big Kenai Peninsula wildfire last summer. The good news is that it appears only seven to nine poles need complete replacing, down from 14 estimated earlier. That will lower costs of the repairs. Utilities are also looking at upgrading capacity of the transmission line to allow it to carry more hydro power north to Anchorage, MatSu and Interior Alaska.

Petroleum

Petroleum

92 tracts sold in NPR-A sale Ninety two tracts were bid on in the NPR-A lease sale for an apparent total of $11.27 million in cash bonus bids. The bidding covered 1 million acres. In a state lease sale on onshore state lands east of the petroleum reserve companies offered $6.58 million in bids on 56 tracts covering 108,320 acres and, separately, $1.2 million bid on 13 offshore Beaufort Sea tracts on 46,290 acres. What was most significant was the…

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Business Summaries

Business Summaries

Governor’s proposed budget may trigger new credit downgrade Alaska may face another downgrade in its credit rating due to Gov. Mike Dunleavy’s continued quest for a “full” Permanent Fund Dividend at the expense of traditional public services in the state budget, Fitch Ratings said. Last September credit rating agencies including Fitch lowered ratings on Alaska debt from AA to AA–. Depending on how the Legislature deals with the governor’s new push for a larger dividend, and a related push for…

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State tackles its review of $5.6 billion BP-Hilcorp sale

State tackles its review of $5.6 billion BP-Hilcorp sale

State probes Hilcorp financial capabilities to handle emergencies Department of Natural Resources officials briefed state legislators Dec. 16 on their work reviewing the planned sale of BP’s Alaska assets to Hilcorp Energy. Commissioner Corri Feige said the sale needs DNR approval as well as that of the Regulatory Commission of Alaska for regulated pipeline assets. The regulatory commission is now completing a preliminary review of the “midstream” asset sale and in January will begin a formal review which will most…

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Transportation

Transportation

Six of 11 ferry vessels now down Six of 11 state ferry vessels have been pulled from service to due lack of funds for major maintenance, the Alaska Dept. of Transportation and Public Facilities said. The latest development is the vessels LeConte and Aurora being pulled from service after inspections showed steel replacement and reinforcement are needed. Four vessels are already in layup, including the Malaspina, Fairweather, Columbia and Chenega. There is enough money to do the repair work on…

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Energy

Energy

Geothermal at Makushin Volcano Unalaska’s Native village corporation, Ounalashka Corporation, has teamed up with Fairbanks-based Chena Power, led by energy entrepreneur Bernie Karl, to develop geothermal power at Makushin Volcano near Unalaska. The plan is to build a 30 megawatt power plan to supply the community and its large fish processing plants. The venture, 51 percent owned by Ounalashka, is working to secure a power sales agreement with the City of Unalaska and to secure $300 million to $500 million…

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Minerals

Minerals

Final EIS on Ambler road The U.S. Bureau of Land Management will issue the final Environmental Impact Statement, or FEIS, for the Ambler industrial road in February. The original target was December. Traditionally a federal Record of Decision, a final approval, comes 30 days after the FEIS. BLM is considering three route options for the single-lane gravel road from the Dalton Highway to the Ambler Mining District in the western Brooks Range. The shortest is 211 miles and is preferred…

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