Economic Report 13-19
In this issue we will be discussing the HILCORP/BP deal, the release of a Draft Environmental Impact Statement, as well as the cost of delaying building maintenance for the University of Alaska and more.
Economic Report 12-19
In this issue we talk about the Governor’s budget and is it going to keep us in a recession, the new space data center in the Mat-su, and the season that the North Slope had.
Economic Report 11-19
In this issue we contemplate the budget mess in Juneau on our economy, UA’s Board of Regents declaring a financial emergency, delay of port reconstruction in Anchorage and much more
Economic Report 10-19
In this issue we we discuss what the veto would do to the University of Alaska, bids for the reconstruction project, employment rates and more.
Fisheries
Halibut harvests headed lower? Halibut harvest quotas will likely be headed lower, based on fisheries survey data and analyses of the 2019 harvest provided to the International Pacific Halibut Commission, or IPHC. Halibut stocks are down 4 percent and the average weight of individual fish is down 5 percent. The numbers of spawning halibut continue to be down, continuing a multi-year trend, scientists told the Commission, which met in Seattle. The IPHC will set harvest quotas in February. Halibut sell…
Energy
Lower power line repair costs? Homer Electric Assoc. is now replacing power transmission poles along the “SQ Line” damaged by the big Kenai Peninsula wildfire last summer. The good news is that it appears only seven to nine poles need complete replacing, down from 14 estimated earlier. That will lower costs of the repairs. Utilities are also looking at upgrading capacity of the transmission line to allow it to carry more hydro power north to Anchorage, MatSu and Interior Alaska.
Petroleum
92 tracts sold in NPR-A sale Ninety two tracts were bid on in the NPR-A lease sale for an apparent total of $11.27 million in cash bonus bids. The bidding covered 1 million acres. In a state lease sale on onshore state lands east of the petroleum reserve companies offered $6.58 million in bids on 56 tracts covering 108,320 acres and, separately, $1.2 million bid on 13 offshore Beaufort Sea tracts on 46,290 acres. What was most significant was the…
Business Summaries
Governor’s proposed budget may trigger new credit downgrade Alaska may face another downgrade in its credit rating due to Gov. Mike Dunleavy’s continued quest for a “full” Permanent Fund Dividend at the expense of traditional public services in the state budget, Fitch Ratings said. Last September credit rating agencies including Fitch lowered ratings on Alaska debt from AA to AA–. Depending on how the Legislature deals with the governor’s new push for a larger dividend, and a related push for…
State tackles its review of $5.6 billion BP-Hilcorp sale
State probes Hilcorp financial capabilities to handle emergencies Department of Natural Resources officials briefed state legislators Dec. 16 on their work reviewing the planned sale of BP’s Alaska assets to Hilcorp Energy. Commissioner Corri Feige said the sale needs DNR approval as well as that of the Regulatory Commission of Alaska for regulated pipeline assets. The regulatory commission is now completing a preliminary review of the “midstream” asset sale and in January will begin a formal review which will most…
Transportation
Six of 11 ferry vessels now down Six of 11 state ferry vessels have been pulled from service to due lack of funds for major maintenance, the Alaska Dept. of Transportation and Public Facilities said. The latest development is the vessels LeConte and Aurora being pulled from service after inspections showed steel replacement and reinforcement are needed. Four vessels are already in layup, including the Malaspina, Fairweather, Columbia and Chenega. There is enough money to do the repair work on…