The release of the 2016 Spring Revenue preliminary forecast yesterday was used by the Walker administration in an attempt to convince legislators and Alaskans that an additional $300 million reduction in forecasted revenue must be addressed by adopting his budget plan. The governor even went so far as to threaten a special session if the legislature didn’t adopt his plan.
What the Governor failed to include in the discussion was the revision of the production estimates – an increase of 17,500 barrels per day based on actual daily production levels from the last eight months.
Headlamp doesn’t feel the need to point out the difference between “forecast” and “actual.”
Headlamp will, however, point out that acknowledging increased production is occurring, doesn’t fit with the Walker Administration’s “Keep it in the Ground” resource development plan nor HB 247 – the administration’s bill to remove the incentives that have led to increased production and would change oil taxes for the sixth time in 11 years.
In the coming weeks, as HB 247 makes its way through the process, the legislature, as well as Alaskans, need to decide if we favor this “keep it in the ground” approach or if we prefer to maintain the policies that have led to increased production.
Stay tuned to Headlamp for the impacts HB 247 will have on Alaskan companies, Alaskan jobs and Alaska’s economy.