Alaska has some hard decisions to make. Amid the plunge in global oil prices of more than 60% since mid-July 2014 and with oil production in the state already dropping due to maturing fields and with production losses not being replaced, state coffers have been hit hard.
The revenue losses have created a political fire-storm between Gov. Bill Walker and legislators over hard budget cut choices since nearly 90% of the state’s revenue is usually derived from oil activities. Adding to the fray was Shell’s announcement late last year that it was abandoning its Alaska Arctic oil exploration and production ambitions.
