ANCHORAGE- Dec. 11, 2020 – “Today’s production forecast underscores the need for Alaska to produce more oil,” said Kara Moriarty, AOGA president and CEO. “The oil and gas industry remains the state’s largest industry, and largest source of revenue from business. With oil price out of our control, the best way for the oil industry to contribute even more revenue to the State is to increase oil production, an
activity that also supports thousands of local jobs and small businesses, while keeping the Trans Alaska Pipeline System viable.”
“Even though the events of 2020 and low oil prices remain a challenge, the oil and gas industry is key to the state’s economic recovery as it continues to successfully mitigate the impacts of COVID-19 and ramp operations back up,” said Moriarty. “In its press release issued today, the Department of Revenue said ‘…The department is optimistic that new developments will contribute to stabilizing (oil) production over
the coming decade.’ We agree: new projects and increased drilling activity are on the horizon, and we look forward to doing what we do best – finding and responsibly producing oil for the benefit of all Alaskans.”
“Most importantly, we are grateful to Alaska voters for soundly rejecting Ballot Measure 1 in November. We have already seen positive announcements since its defeat, as the industry’s confidence in Alaska improves now that the uncertainty posed by the ballot measure has been resolved. Assuming a stable tax structure remains in place, Alaska’s chances for attracting increased investment improves.”
Prior to the COVID-19 pandemic, oil and gas was a bright spot in Alaska’s economy. Drilling and exploration activity were the highest the State had seen in 20 years, new discoveries were being made, and oil and gas jobs were on the rise. Then, the national pandemic hit, and oil prices plummeted to historic lows. In total, the events of 2020 decimated the industry, with jobs shed and drilling halted. The oil and gas industry is hopeful 2021 will be a better year for both activity and jobs with a resolution to the pandemic on the horizon.
AOGA is a professional trade association whose mission is to foster the long-term viability of the oil and gas industry in Alaska for the benefit of all Alaskans. More information about the organization can be found at www.aoga.org, on Facebook (AlaskaOilAndGas), Twitter (@AOGA), and Instagram (@alaskaoilgasassociation)
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