12/21/11 - 12:48pm
Two news stories Thursday should set off alarms about Alaska's fiscal future. One on National Public Radio reported that oil production in Iran is plummeting due to lack of investment. The second came Petroleum News Alaska that North Slope production slipped below 600,000 barrels per day during FY 2011 - the lowest ever recorded.
We know there is a direct corollary between investment and production levels. And we know that the investment Alaska needs to stem its production decline is going to other oil provinces where producers can earn a better rate of return.