"Oil revenues continue to dominate the unrestricted revenue picture - and is projected to provide more than 87% of General Purpose Unrestricted Revenue through FY 2018"


Almost all Alaska oil and gas production occurs on state lands leased for exploration and development. As the landowner, the state earns revenue from leasing as: (1) upfront bonuses, (2) annual rent charges and (3) a retained royalty interest in oil and gas production. State oil and gas leases provide that the state may take its oil royalty in barrels (in-kind) or as a percentage of the production value (in-value). In FY 2007, the state took approximately 60,000 barrels per day of North Slope production in-kind. Royalty of Oil and Gas