Alaska still runs on oil . Alaska’s North Slope has responsibly produced more than 18 billion barrels of oil since the discovery of the Prudhoe Bay oil field. The April 2020 forecast assumes that production will decline to 486,400 bpd in FY2020 and 486,500 bpd in FY2021.
|Prudhoe Bay oil field|
|Partners||BP, ExxonMobil, ConocoPhillips|
|Discovery||March 12, 1968 by ARCO and Exxon’s Prudhoe Bay State #1 well|
As of 2019, the fund was worth approximately $64 billion that has been funded by oil revenues and has paid out an average of approximately $1,600 annually per resident (adjusted to 2019 dollars).
It’s no wonder: Projections show that the area of land and sea that falls within the Arctic Circle is home to an estimated 90 billion barrels of oil , an incredible 13% of Earth’s reserves. Most of the oil that’s been located in this region so far is on the land, just because it’s easier to access.
Petroleum. Alaska’s proved crude oil reserves—about 2 billion barrels at the beginning of 2018—were the sixth-largest of any state. The state’s oil output peaked at 2 million barrels per day in 1988. Since 2003, Alaska’s annual oil production has declined steadily as the state’s oil fields matured.
There are 1.65 trillion barrels of proven oil reserves in the world as of 2016. The world has proven reserves equivalent to 46.6 times its annual consumption levels. This means it has about 47 years of oil left (at current consumption levels and excluding unproven reserves).
About 466,000 barrels per day were produced from North Slope fields in July 2019, according to Revenue Department records.
Though it is one of the coldest and most sparsely populated areas on the planet, Alaska ranked 15th back in 2007 among all American states in terms of GDP per capita, thanks to its rich natural resources, particularly its gigantic crude oil reserves.
Alaska is the only state that does not collect state sales tax or levy an individual income tax on any type of personal income, either earned or unearned. Instead, every Alaskan , children as well as adults, receives a payment each year from the Alaska Permanent Fund Corporation.
Alaska runs a program called the Alaska Permanent Fund, which, per the state website, allots an equal amount of the state’s oil royalties to every resident through an annual dividend. In 2018, that dividend came out to $1,600 per person.
Top ten countries with the largest oil reserves Venezuela – 304 billion barrels. Saudi Arabia – 298 billion barrels. Canada – 170 billion barrels. Iran – 156 billion barrels. Iraq – 145 billion barrels. Russia – 107 billion barrels. Kuwait – 102 billion barrels. United Arab Emirates – 98 billion barrels.
The Trans Alaska Pipeline System starts in Prudhoe Bay and stretches through rugged and beautiful terrain to Valdez, the northernmost ice-free point in America. The Trans Alaska Pipeline System was designed and constructed to move oil from the North Slope of Alaska to the northern most ice-free port in Valdez, Alaska.
The oil and gas industry is the largest component of Alaska’s economy. Nearly 85 percent of the state budget is supplied by oil revenues. The fortunes of Alaska’s oil industry, and therefore many sectors of the economy, are dependent upon world oil prices.