Oil Dependence and Economic Activity
Setting the stage
Let's quickly look at where this oil decline has left the state
What about Alaska's important economic base?
Why have some states recovered?
Aggregate relationship between oil prices and employment
Where does this leave us?
• The Alaska economy is heavily dependent on the oil sector
both in terms of private sector jobs and government
funding.
Why is the state in trouble?
Before the end of 2014, oil prices were elevated for a long
period of time when the price exceeded $100 for multiple
months. However, starting June 2014, oil prices experienced a
deep drop averaging only $54.26 in the 4 years since. This is
much lower than the $84.47 they averaged between 2006 and
July 2014.
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Mouhcine Guettabi, PhD
Oil dependence and economic activityView entire presentation