ALASKA RESOURCE REVIEW WINTER 2024 40 LOOKING BACK: RESOURCE DEVELOPMENT COUNCIL FOR ALASKA THROUGH THE YEARS 2020, our most recent Resource Review, looked beyond the pandemic and better years ahead. THIS EDITION SPONSORED BY AT&T AND THE NORTH SLOPE BOROUGH Alaska Industry Outlook for 2021 By Kari Nore Despite the many challenges that all resource development industries faced this year, industry panelists speaking at the Alaska Resources Conference in November found plenty of common ground in looking forward to 2021, in addition to identifying positive aspects of 2020. One important highlight for 2020 was the full exemption of the Tongass National Forest from the Roadless Rule, which John Sturgeon, President of Koncor Forest Products, noted would open up more lands to timber sales, however he cautioned that the exemption could be reversed with the incoming federal administration. Stephanie Madsen, Executive Director, At-Sea Processors Association, echoed similar concerns with the new incoming federal administration and how drastic changes to the fishing industry could be executed through executive orders. For example, implementing the 30 by 30 plan, which could severely hamper the ability to operate fisheries in Alaska, and would largely hinge on who is in the regulatory seat for fisheries. There was plenty of good news in 2020 for the mining sector as Karen Matthias, Executive Director of the Council of Alaska Producers, reported that mining started off very strong in 2020 with great prices and high demand for minerals. She also noted that despite the challenges and costs with managing COVID-19 at mining sites across the state, there has been a surprising amount of goods news – the strong commodity prices helped to encourage additional investment and exploration. It is often darkest right before the dawn. As COVID-19 continues and Alaskans hunker down for the holidays, light is appearing at the end of the tunnel. A sustainable economic recovery in a state heavily dependent on the development of its natural resources to fund public services may be right around the corner. Rising oil prices and more certainty around Alaska’s oil tax system has already improved the outlook on North Slope production. The mining industry is moving forward and the tourism and fishing sectors are looking at improving markets in 2021. ConocoPhillips announced at RDC’s Alaska Resources Conference in November that it will begin gearing up four rigs at North Slope drilling projects this month. Going from zero to four active rigs will boost production by thousands of barrels per day and put up to 1,000 Alaskans back to work. Major development prospects, like Willow and Pikka, are back on track to get positive final investment decisions in 2021. Continued to page 2 As 2020 ends, things may not be as bad as they seem North Slope drilling is expected to resume this winter after the defeat of Ballot Measure One. Speaking at RDC’s virtual conference, ConocoPhillips Alaska president Joe Marushack cited the defeat of Ballot Measure One as a primary factor for resumption of drilling, providing some hope that the North Slope renaissance will continue. 2020 was supposed to be the company’s largest exploration and winter construction season ever. However, as the pandemic spread across the world, the demand for oil crashed, followed by a collapse of oil prices. The company was forced to suspend development and cut production. Thousands of workers were flown off the North Slope. A third of all industry jobs were lost. Another glimmer of light is the Bureau of Land Management (BLM) is moving forward with the first lease sale in the Arctic National Wildlife Refuge on January 6th. The BLM is currently taking nominations for which leases to offer in the sale. However, forward movement in ANWR could face Continued to page 4
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