Alaska's energy future: now is the time to move forward.

AuthorSeneca, Anne
PositionENERGY - Statistical data

The rapid rise of shale energy production in the Lower 48 has broken records and shattered expectations of "peak oil." Headlines frequently tout the new American energy powerhouse. Thanks to shale production, a country with a perceived shortage of domestic energy supply just a few years ago is now less dependent on imports and more energy self-sufficient--making the nation far more competitive on a global scale.

Accordingly, the United States is now the largest oil-and-gas producer in the world, and its resulting economic and employment contributions are being felt throughout the once-weakened US economy. Household incomes are up, as is trade, manufacturing output, and job creation.

Seemingly left behind in the midst of the record-breaking boom in the contiguous United States is Alaska, the once and future cornerstone of the US energy landscape. Whereas the Lower 48 has seen energy production shoot up 77 percent in the last five years, due largely to state and private ownership of mineral rights, Alaska's oil production has plunged from more than 2 million barrels per day in the late 1980s to fewer than 400,000 today, dropping the state to No. 4 nationwide in oil production. Even California--the state has considered banning fracking and said "no" to offshore drilling--produces more oil than Alaska.

Alaska's Resource Decline

Alaska's numbers have dropped for various reasons, like years-long environmental reviews, excessive and unnecessary litigation, new management plans, and regulatory uncertainty. Because 62 percent of Alaska's land is controlled by the federal government and all waters more than three nautical miles offshore are also federally owned and managed, our state's energy development has been stymied by the federal government's inability--or unwillingness--to lease and permit expanded development on federal lands. According to the Congressional Research Service, crude oil production on federal lands has slipped by more than 6 percent since 2009. In contrast, production on non-federal lands has grown by 60 percent.

As a result, Alaska's competitiveness has drastically diminished, the Alaska Oil and Gas Association says. Alaska oil production, for instance, now accounts for less than 10 percent of US domestic production, a dramatic decline from the more than 20 percent the state accounted for between 1980 and 2000. Yet, Alaska's abundant resource potential has never been greater.

The Obama Administration's hesitation and...

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