Investor Presentaiton
$/barrel (expressed in 2011 dollars)
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Oil prices are among the most important factors affecting Alaska oil
production, state revenues, and the Alaska economy.
Oil prices directly affect how much revenue the State gets from the oil industry.
Oil prices affect how profitable oil development is for the oil companies, and their
willingness to invest in new development.
$120
Average Annual Price of Crude Oil (adjusted for inflation)
$100
Oil prices are extremely
volatile! Here is how oil prices
(adjusted for inflation) have
changed since North Slope oil
production began in 1977:
$53/barrel in 1977
$80
$60
$40
$20
$0
60
$104/barrel in 1980
$31/barrel in 1986
$42/barrel in 1990
$20/barrel in 1998
$104/barrel in 2008
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
Source: Average annual price, West Texas Intermediate crude oil, from U.S. Energy Information Administration,
www.eia.doe.gov/emeu/international/oil price.html
$65/barrel in 2009
$95/barrel in 2011
The State's revenues and
economy have been
dramatically affected by these
oil price changes.View entire presentation