Morning Headlamp — Alliance’s Logan featured on KTUU

KTUU reported that economists with Alaska’s Department of Labor have noted the decline in the labor market due to a struggling oil and gas industry. Between April 2015 and April 2016, the oil sector has shed roughly 2,300 jobs, which accounts for about a 20 percent loss, said Neal Fried, Economist with the State of Alaska Department of Labor. “When you lose those jobs and those oil industry jobs pay 2 ½ times the average,” Fried said. “When those jobs are lost you lose other jobs, whether it’s in retail, other services, you name it, those can be felt throughout the economy.” “The oil industry jobs are the highest paying in the state,” said Alliance General Manager Rebecca Logan. “The average wage is $135,000 per year, so think about the impact of losing 2,200 jobs at $135,000 a year and the payroll that takes out of the economy.  The administration hired a consultant to speculate about the impacts on the economy of less government spending and fewer government jobs – choosing to ignore what was happening in its strongest industry.  Headlamp wonders why?

An Alaska Journal of Commerce article reported that the Senate Finance Committee sent a letter to Gov. Bill Walker asking him to delay sanctioning of the Interior Energy Project at least until Doyon Ltd. has drilling results from its exploration of the Nenana basin. Specifically, the Finance Committee letter notes the administration’s support for extending tax credits for exploration work done in the “Middle Earth” basins of Alaska, those areas other than the Slope and Cook Inlet, by a year to July 2017.

ONE WEEK LEFT! The comment period on the Bureau of Ocean Energy Management (BOEM) outer continental shelf proposal closes in a week! Tell the BOEM what you think here.

According to Tim Bradner, Alaska’s Native corporations, which are financially strong and stable, are investing and keeping Alaskans employed. Bradner feels “a lot more confident about” Alaska’s future knowing the Native Corporations are pouring resources into the oil and gas industry.


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First Reads

Alaska’s economy suffers as oil companies scale back
KTUU, Blake Essig, June 8, 2016

AJOC EDITORIAL: $1,000 is nothing to sneeze at
Alaska Journal of Commerce, Andrew Jensen, June 8, 2016

‘Middle Earth’ tax credit debate reaches Interior gas project
Alaska Journal of Commerce, Elwood Brehmer, June 8, 2016

Nearing end, Legislature rebuffs most of Walker’s deficit plan
Alaska Journal of Commerce, James Brooks, June 8, 2016

Oil giant’s Arctic pullout raises alarms for offshore drillers
Washington Examiner, John Siciliano, June 8, 2016

Native corporations are drilling against the doom and gloom
Alaska Dispatch News, Tim Bradner, June 8, 2016