Alaskans are gearing up to pay a price for the attack on Ukraine from Russia with analysts predicting increased gasoline prices and higher inflation. Oil prices soared after the attack as the Brent Crude oil index hit $100 per barrel for the first time since 2014, which could translate to higher gas prices. According to Rebecca Jarvis of ABC News, for every dollar the price of oil goes up, the price of a gallon of gas goes up one and a half cents, predicting $4/gallon for regular gasoline in the near future.
Larry Persily, Federal Coordinator with Alaska Natural Gas Transportation Projects, explains to KSRM’s “Sound Off” how much of the sanctions on Russia and the conflict with Ukraine will impact Alaska:
“It impacts state revenues. Look, the north slope oil production is about one half of 1% of global oil. Global oil is getting close to $100 million barrels a day. We produce half a million. We do not drive the market. All Alaska crude or 99% of it is either refined in Alaska or on the west coast so it all stays in the U.S. predominantly. Well, west coast consumes a lot more than we do. some of it does get sent back to us, certainly some is used in Nikiski refinery. How this affecting us is more state revenue, higher prices at the pump, but it’s not like ConocoPhillips or Hillcorp Alaska can instantly double production in the North Slope. We’re a small player on the global market and we’re along for the ride, good or bad with everyone else.”
Persily was asked if this conflict could lead to $5 or $6/gallon gasoline:
“I think we’re getting near the peak or there may be a little spike, but I don’t anticipate $5 or $6, I really don’t. That’s not to say $4.25 is wonderful, but I don’t see it going that high absent some all out war in Europe and, in which case, the price at the pump is going to be the least of our problems.”
Click here to listen to Persily’s entire interview on KSRM’s “Sound Off” from Wednesday during hour 2.