Morning Headlamp – When you lose 3000, $135,000/yr. jobs – everyone in Alaska loses.

The average wage in Alaska fell last year for the first time since the mid-1990s. Recently released state data demonstrated that the average wage in Alaska went down in the first time in twenty years following the elimination of thousands of jobs in oil and gas. An economist at the Institute of Social and Economic Research at the University of Alaska Anchorage, Mouhcine Guettabi, explained that, “It’s certainly a metric that matters because the economy depends on people spending to a great extent and wages comprise a significant portion of total income.”

Headlamp would emphasize that losing more than 3000 jobs with an average wage of $135,000/year impacts every sector of our economy. The governor and the legislature could take action to stop the hemorrhaging – the question is, will they? 

This is not sustainable. U.S. shale oil pioneer Harold Hamm on Wednesday warned that sub-$40 crude would cause many U.S. producers to stop drilling and warned fellow CEOs to exercise discipline. “This price … is not sustainable,” Hamm, CEO and chairman of Continental Resources, told CNBC’s “Squawk Box.” “It needs to be north of $50 for sure to be sustainable in the world.”

Murkowski ally nominated to FERC. U.S. President Donald Trump intends to nominate Senate aide Richard Glick to be a member of the Federal Energy Regulatory Commission, the White House said in a statement on Wednesday. Glick, who is general counsel of the Senate Energy and Natural Resources Committee, would serve the remainder of a five-year term expiring in June 2022, the statement said.

More oil in the pipeline!!! Brooks Range says Mustang will produce in ’17. Anchorage-based Brooks Range Petroleum Corp. is set to receive $70 million from the State of Alaska in order to bring its Mustang project to fruition this winter. It is expected to produce up to 15,000 barrels of oil a day at its peak, drawing from around 22 million barrels of “proven reserves.”

Headlamp is thrilled with the news that Brooks Range can move forward with their project and put more oil in the pipeline. This is the type of ingenuity between the private sector and the state that can get our economy back on track. 

Sun hasn’t set yet on ANWR. After Interior Secretary Zinke directed “federal agencies to reevaluate the oil and gas potential within the National Petroleum Reserve-Alaska and the coastal plain of the Arctic National Wildlife Refuge,” Alaska oil advocates applauded.

Discoveries boost hopes for Alaska oil output. Oil discoveries in the past couple years in the North Slope of Alaska have improved conditions for the “economy of the region and the state.” These developments appease concerns over the Trans-Alaska Pipeline, termed North Slope’s oil lifeline.  The resource is there, the companies are there, the federal government is there – is the state of Alaska there?   

First Reads

The Average Wage in Alaska Fell Last Year for the First Time Since the Mid-1990s

Alaska Dispatch News, Jeannette Lee Falsey, June 29, 2017

Despite Delays, Brooks Range Says Mustang Will Produce in ‘17

Alaska Journal of Commerce, Elwood Brehmer, June 28, 2017

Sun Hasn’t Set Yet on ANWR.

Alaska Journal of Commerce, Elwood Brehmer, June 28, 2017

Discoveries Boost Hopes for Alaska Oil Output.

Bloomberg BNA, Alan Kovski, June 28, 2017

Harold Hamm warns oil prices below $40 will idle US drilling, cautions producers to be ‘prudent’

CNBC, To DiChristopher, June 28, 2017

Trump to nominate Senate aide for Federal Energy Regulatory Commission

Reuters, Eric Beech, June 29, 2017