Low oil prices and increasing budget cuts have made many Alaskans questioning: are we in a recession?
Kenai Peninsula College’s Assistant Professor of Business Steve Horn has a history in economics.
He says the most interesting economy pattern is the population growth in residents 65 and older retiring on the peninsula.
Horn: “They still want to be active and they still need services. Good healthcare is important, good people to provide those services are important and I think that we have that with Central Peninsula Hospital which provides a lot of those things that people looking for the quality of life that they want in retirement that this area provides.”
There has also been an increase in residents under the age of five which is a good indicator, meaning families are staying and growing.
Another trend Horn said will impact the Kenai Peninsula’s economy is the patterns of the Cook Inlet Renaissance, referencing Hilcorp’s recent purchase of XTO Energy assets.
Horn: “What we’re seeing is that Hilcorp is probably going to become the biggest operator of assets in the inlet. So as far as the number of employers that is being reduced but it remains to be seen if the employment numbers and the jobs remain the same or if through all their consolidation there’s a restriction of jobs.”
Horn said overall the Kenai Peninsula’s economy is categorized as boom-or-bust due to the dependence on oil, and right now we’re in bust.
As for the Alaska LNG Project, Horn said there are still too many variables to predict if the Kenai Peninsula’s economy will work back upward during the LNG’s preparation or downturn in the meantime.