As global oil prices have soared following Russia’s invasion of Ukraine, there’s been cause for a lot of optimism in projections for Alaska’s mostly oil-driven state revenue.
But prices and production are at play in the revenue equation. So with oil above $100 a barrel, some Alaskans have wondered: Will oil companies now be drilling for more oil here? Not likely, says longtime oil industry observer Larry Persily, who’s worked and reported on oil and gas issues in Alaska for decades.
Persily says the two main Alaska projects under development — Oil Search’s Pikka field and ConocoPhillips’ Willow project — were already in the works, and he hasn’t seen any other large projects that would go forward because of recent high oil prices.I don’t see where today’s high prices, last month’s high prices, next month’s high prices are really going to change anything for Alaska production.
And the other thing working against Alaska, which has nothing to do with Ukraine or high prices, is more and more shareholders, companies, investors, lenders, financial firms, insurance companies are distancing themselves from investing in fossil fuel, coal, but particularly Arctic oil and gas. They just don’t want the push back on the headlines that say, “Oil major puts money into Arctic.” It’s not an attractive headline these days.: I guess I understand there are the projects in the works.