Changing Oil Industry: Will It Affect Oil Prices?

Abstract

The petroleum industry is far different today from what it was two decades ago, when oil started flowing from Alaska’s North Slope. An important question in Alaska, where oil has driven economic growth and supported government since the 1970s, is what industry changes might mean for future oil prices. As ISER noted in 1998, Alaska is less vulnerable to low oil prices than it used to be, because the state government has invested much of its oil income to build huge financial reserves and has sharply cut spending. This paper explores a range of questions relating to consolidation of the companies developing Alaskan oil, and other changes to the terms under which this resource is developed.