Economy Alaska

1 economy

1.1 energy

1.1.1 permanent fund


1.2 cost of living
1.3 agriculture , fishing

economy



aerial view of infrastructure @ prudhoe bay oil field.

the 2007 gross state product $44.9 billion, 45th in nation. per capita personal income 2007 $40,042, ranking 15th in nation. according 2013 study phoenix marketing international, alaska had fifth-largest number of millionaires per capita in united states, ratio of 6.75 percent. oil , gas industry dominates alaskan economy, more 80% of state s revenues derived petroleum extraction. alaska s main export product (excluding oil , natural gas) seafood, salmon, cod, pollock , crab.

agriculture represents small fraction of alaskan economy. agricultural production consumption within state , includes nursery stock, dairy products, vegetables, , livestock. manufacturing limited, foodstuffs , general goods imported elsewhere.

employment in government , industries such natural resource extraction, shipping, , transportation. military bases significant component of economy in fairbanks north star, anchorage , kodiak island boroughs, kodiak. federal subsidies important part of economy, allowing state keep taxes low. industrial outputs crude petroleum, natural gas, coal, gold, precious metals, zinc , other mining, seafood processing, timber , wood products. there growing service , tourism sector. tourists have contributed economy supporting local lodging.

energy


the trans-alaska pipeline transports oil, alaska s financially important export, north slope valdez. heat pipes in column mounts pertinent, since disperse heat upwards , prevent melting of permafrost.

alaska has vast energy resources, although oil reserves have been largely depleted. major oil , gas reserves found in alaska north slope (ans) , cook inlet basins, according energy information administration, february 2014 alaska had fallen fourth place in nation in crude oil production after texas, north dakota, , california. prudhoe bay on alaska s north slope still second highest-yielding oil field in united states, typically producing 400,000 barrels per day (64,000 m/d), although 2014 north dakota s bakken formation producing on 900,000 barrels per day (140,000 m/d). prudhoe bay largest conventional oil field ever discovered in north america, smaller canada s enormous athabasca oil sands field, 2014 producing 1,500,000 barrels per day (240,000 m/d) of unconventional oil, , had hundreds of years of producible reserves @ rate.

the trans-alaska pipeline can transport , pump 2.1 million barrels (330,000 m) of crude oil per day, more other crude oil pipeline in united states. additionally, substantial coal deposits found in alaska s bituminous, sub-bituminous, , lignite coal basins. united states geological survey estimates there 85.4 trillion cubic feet (2,420 km) of undiscovered, technically recoverable gas natural gas hydrates on alaskan north slope. alaska offers of highest hydroelectric power potential in country numerous rivers. large swaths of alaskan coastline offer wind , geothermal energy potential well.

alaska s economy depends heavily on increasingly expensive diesel fuel heating, transportation, electric power , light. though wind , hydroelectric power abundant , underdeveloped, proposals statewide energy systems (e.g. special low-cost electric interties) judged uneconomical (at time of report, 2001) due low (less 50¢/gal) fuel prices, long distances , low population. cost of gallon of gas in urban alaska today 30–60¢ higher national average; prices in rural areas higher vary depending on transportation costs, seasonal usage peaks, nearby petroleum development infrastructure , many other factors.

permanent fund

the alaska permanent fund constitutionally authorized appropriation of oil revenues, established voters in 1976 manage surplus in state petroleum revenues oil, largely in anticipation of constructed trans-alaska pipeline system. fund proposed governor keith miller on eve of 1969 prudhoe bay lease sale, out of fear legislature spend entire proceeds of sale (which amounted $900 million) @ once. later championed governor jay hammond , kenai state representative hugh malone. has served attractive political prospect ever since, diverting revenues deposited general fund.

the alaska constitution written discourage dedicating state funds particular purpose. permanent fund has become rare exception this, due political climate of distrust existing during time of creation. initial principal of $734,000, fund has grown $50 billion result of oil royalties , capital investment programs. if not principal invested conservatively outside alaska. has led frequent calls alaskan politicians fund make investments within alaska, though such stance has never gained momentum.

starting in 1982, dividends fund s annual growth have been paid out each year eligible alaskans, ranging initial $1,000 in 1982 (equal 3 years payout, distribution of payments held in lawsuit on distribution scheme) $3,269 in 2008 (which included one-time $1,200 resource rebate ). every year, state legislature takes out 8% earnings, puts 3% principal inflation proofing, , remaining 5% distributed qualifying alaskans. qualify permanent fund dividend, 1 must have lived in state minimum of 12 months, maintain constant residency subject allowable absences, , not subject court judgments or criminal convictions fall under various disqualifying classifications or may subject payment amount civil garnishment.

the permanent fund considered 1 of leading examples of basic income policy in world.

cost of living

the cost of goods in alaska has long been higher in contiguous 48 states. federal government employees, particularly united states postal service (usps) workers , active-duty military members, receive cost of living allowance set @ 25% of base pay because, while cost of living has gone down, still 1 of highest in country.

rural alaska suffers extremely high prices food , consumer goods compared rest of country, due relatively limited transportation infrastructure.

agriculture , fishing

halibut important state s economy both commercial , sport-caught fish.

due northern climate , short growing season, relatively little farming occurs in alaska. farms in either matanuska valley, 40 miles (64 km) northeast of anchorage, or on kenai peninsula, 60 miles (97 km) southwest of anchorage. short 100-day growing season limits crops can grown, long sunny summer days make productive growing seasons. primary crops potatoes, carrots, lettuce, , cabbage.

the tanana valley notable agricultural locus, delta junction area, 100 miles (160 km) southeast of fairbanks, sizable concentration of farms growing agronomic crops; these farms lie north , east of fort greely. area largely set aside , developed under state program spearheaded hammond during second term governor. delta-area crops consist predominately of barley , hay. west of fairbanks lies concentration of small farms catering restaurants, hotel , tourist industry, , community-supported agriculture.

alaskan agriculture has experienced surge in growth of market gardeners, small farms , farmers markets in recent years, highest percentage increase (46%) in nation in growth in farmers markets in 2011, compared 17% nationwide. peony industry has taken off, growing season allows farmers harvest during gap in supply elsewhere in world, thereby filling niche in flower market.

alaska, no counties, lacks county fairs. however, small assortment of state , local fairs (with alaska state fair in palmer largest), held in late summer. fairs located in communities historic or current agricultural activity, , feature local farmers exhibiting produce in addition more high-profile commercial activities such carnival rides, concerts , food. alaska grown used agricultural slogan.

alaska has abundance of seafood, primary fisheries in bering sea , north pacific. seafood 1 of few food items cheaper within state outside it. many alaskans take advantage of salmon seasons harvest portions of household diet while fishing subsistence, sport. includes fish taken hook, net or wheel.

hunting subsistence, caribou, moose, , dall sheep still common in state, particularly in remote bush communities. example of traditional native food akutaq, eskimo ice cream, can consist of reindeer fat, seal oil, dried fish meat , local berries.

alaska s reindeer herding concentrated on seward peninsula, wild caribou can prevented mingling , migrating domesticated reindeer.

most food in alaska transported state outside , , shipping costs make food in cities relatively expensive. in rural areas, subsistence hunting , gathering essential activity because imported food prohibitively expensive. though small towns , villages in alaska lie along coastline, cost of importing food remote villages can high, because of terrain , difficult road conditions, change dramatically, due varying climate , precipitation changes. cost of transport can reach high 50¢ per pound ($1.10/kg) or more in remote areas, during difficult times, if these locations can reached @ during such inclement weather , terrain conditions. cost of delivering 1 gallon (3.8 l) of milk $3.50 in many villages per capita income can $20,000 or less. fuel cost per gallon routinely 20–30¢ higher continental united states average, hawaii having higher prices.