KSRM’s Ashley Smith is reporting from the 2016 Industry Outlook Forum in Kenai throughout this afternoon. Refresh for updates.
The afternoon speakers transitioned from the cautious attitude of the morning to more forward looking projections of what’s to come.
Melissa Houston with the University of Alaska Center for Economic Development says they have been working with the Kenai Peninsula Economic Development Forum on an outlook for the next few years.
She says while some areas like oil and gas have seen cuts in employment, the Kenai Peninsula economy is doing well because of a diversified economy.
Houston says while other areas of the state may just have fishing or just oil and gas, the Kenai Peninsula has jobs dispersed between about five major industries.
The one area of concern for the Kenai Peninsula is the population’s net out migration, meaning more people are moving out than moving in.
The center is predicting about a 0.4 percent population increase for the local area over the next few years which is lower than the 0.9 percent predicted for other comparable areas of the state.
Sandie Gilliland and Jayce Robertson, graduates from Kenai Peninsula College, were asked to speak about the success they’s experienced at the Kenai River campus.
Gilliland is KPC’s Process Technology Program Coordinator who says the college’s success and national accreditations give local graduates continually improved chances to find a career in the local industries.
The college is looking to expand elective courses for the process technology program into mining, water and wastewater treatment, and fish processing industries.
He added that one of his greatest pleasures as a teacher is seeing his graduates find local jobs with companies.
Robertson was recently hired by BlueCrest Energy as a part of the oil and gas exploration company readies for oil production in Anchor Point by April.
BlueCrest Energy CEO Benjamin Johnson says as an Alaskan who grew up on the Kenai Peninsula, hiring local is a top priority for the Anchor Point project.
Looking past the oil production predicted from the Hansen pad in Anchor Point, BlueCrest will pursue drilling wells to reach the oil reservoirs that are approximately three miles offshore of Anchor Point.
Alaska Gasoline Development Corporation Vice President Frank Richards gave an update on the work by the entity for the Alaska LNG Project.
The AGDC has projected Alaska’s natural gas demands through the year 2040 and Richards says the AK LNG project’s volume is more than enough to supply the estimated 120 billion cubic feet per year.
The challenges facing the gasoline megaproject include higher regulatory and construction risks in Alaska, competing against other LNG projects around the world for the same markets, and, of course, low oil prices.
One development Richards highlighted was the Alaska Oil and Gas Conservation Commission’s recent ruling to authorize 3.7 billion cubic feet of natural gas a day to come out of the North Slope gas fields.
The reason that decision is important for the Alaska LNG project is because estimated volume input for the gas treatment plant range from about 3.3 to 3.5 billion feet per day, meaning there is adequate gas available for the project.
The AGDC is continuing to determine the best points on the 800 mile gasline to provide “commercially reasonably priced” gas to communities.
