The price of a barrel of West Texas Intermediate crude oil for May delivery fell far below $0 on Monday. Co-sponsor of the Alaska Fair Share Act, Jane Angvik said , “While this was a surprising price it does not appear to be reflective of the price of oil for Alaska North Slope producers. We concur with the Alaska Department of Revenue economist as reported in Alaska Public Media story this morning which reported that Dan Stickel, chief economist for the Alaska Department of Revenue, cautioned that Monday’s negative prices may not heavily impact Alaska oil producers, who sell most — if not all — of their crude farther in advance because of their distance from the market, and are already focused on June deliveries. “They’ve already firmed up their May plans and they’re saying, ‘Okay, where are we going to sell our oil production in June?’” Stickel said.
Additionally, the same story, quoted Larry Persily, a long-time observer of the oil and gas industry, “Today’s panic prices are not reflective of what Alaska North Slope producers are going to get for what they’re delivering to their West Coast refineries this month,” Persily said. He added that BP and Exxon also have their own refineries.
So, like all Alaskans we will wait and watch as world events determine the volatile price of oil. We maintain that whatever the price, Alaska should receive a Fair Share for the sale of Alaska’s oil.
~ Jane Angvik
