It shouldn’t be any big surprise to anyone that Alaska’s well-being is tied to the price of oil. I thought I would share this short article I found in yesterday’s Anchorage Daily News.
Plunge In Oil Prices Could Hit State Budget
A state senator says the downward trend in crude oil prices could have state budget writers trying to figure how to make ends meet next session.
Juneau Democrat Kim Elton, a member of the Senate Finance Committee, says the price of Alaska crude oil needs to be about $75 to $80 per barrel to cover current state spending.
The price Friday fell below $70 per barrel.
State lawmakers set aside $5 billion of a projected surplus last session that Elton says was in anticipation of a potential rainy day.
He says he now sees thunderclouds on the horizen.
Elton says the last session was spent deciding how to spend a huge surplus, but the next session may be a throwback, with a discussion of a fiscal plan
-The Associated Press
Crude oil prices for today are even lower. I just did a check and Alaskan crude prices are down to $59.68 a barrel.
Alaska Oil Price Drops Below $60
I suspect that even with the handwringing, the Alaskan economy will continue to hum along just fine. Alaska has a lot of money pigeonholed in places for rainy days.
What I do worry about are the people in remote areas who are still paying $8-9 a gallon for heating oil this winter. Falling oil prices won’t affect them much until spring. Many remote communities have fuel oil brought in by barge befor things freeze over. Residents will be stuck paying prices that oil was bought at until oil is shipped again in the spring.
It is good to see that we are still consuming less oil even at the lower prices. Of course, due to the state of the economy, that may because our wallets have also shrunk.
October 29th, 2008 at 8:41 pm
Hey, I’m here via The Lazy Slacker in a bit of serendipity. We visited Alaska this summer and were smitten in about 5 minutes. Blogged a little bit about it, and are home in Minnesota now. The tip about the highway publication is great, thanks. We’re Palin fans, too. I’m subscribing.
Betsy Wuebkers last blog post..RUNES
October 29th, 2008 at 8:57 pm
Hi Betsy,
Glad to hear from you and glad you loved Alaska. You know, I originally just came up here for a summer and never left.
I was back in Northern Minnesota (where I grew up at) for the first time in about 12 years this fall. That was kind of a strange homecoming for me, but I did get to catch up with a couple of old high school friends.
Also glad you’re a Sarah Palin fan.
November 13th, 2008 at 8:24 pm
I am looking forward to reviewing your information. I have from several friends that it is an interesting read.
Thank You!!