Future of Oil And Gas

Since the 1960s, the oil and gas industry has been the biggest driver of the Alaskan economy. However, oil production has been steadily dropping over the last several decades. Since reaching its peak in 1988, oil production in Alaska has fallen more than 75%. 2023 Alaska's oil production averaged 426,000 barrels daily, the lowest level since 1976.

Oil companies are currently exploring and developing new fields on the North Slope. Because of this, oil production is expected to reverse the declining trend and slightly increase over the next decade. However, climate change is driving a long-term, global shift from fossil fuel-based energy to renewable energy sources. In the decades to come, it seems unlikely that the oil and gas industry will be able to support Alaska's economy the way it has for the last 50 years. 

One currently undeveloped resource is the enormous natural gas reserves on the North Slope. With a potential of 200 trillion cubic feet of natural gas, Alaska's North Slope had one of the largest natural gas resources in the world. However, there is currently no means to transport this gas to markets to sell it. Building a natural gas pipeline to a port on the Gulf of Alaska coast, just like was done for oil in the 1970s, has been proposed. However, the potential cost of $55 billion to build this pipeline and LNG terminal has made the project economically unfeasible. 

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