Alaska oil: prices and production.

• Author: Ainsworth, Joel
• Position: Alaska Trends

At its peak in 1988, Alaska produced an average of 65 million barrels of crude oil a month. In 2010, the average is now around 18.5 million barrels. Since 2004 alone, Alaska crude production has decreased by approximately 32 percent. While there are numerous variables to consider, crude oil prices, proved reserves and regulation play a significant role in determining the level of production.

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While ANS production continues on a steady decline, crude oil prices have tended to inch upward, although with a high degree of variability. Alaska crude oil reached its peak in June 2008 with a price of $133.78 per barrel. By December of that year, crude had dropped to $37.70 before renewing its upward trend. Speculative behavior, increasing global...