Oil prices may climb well above $100 per barrel as European countries move away from Russian energy.
Regents at the University of Alaska are preparing to approve the fiscal 2023 budget, but questions remain about raises for union faculty.
And U.S. Dan Sullivan is calling the nominee for America’s military commander in Europe “Putin’s worst nightmare.”
There is more news this week in “Five Things to Know.”
How high can oil prices go?
Oil prices seem high now — tipping the scale at more than $100 per barrel. Bank of America’s global research division predicts they could rise to more than $150 per barrel.
Another spike in prices may occur if Russian oil exports continue to fall as European countries find new energy sources elsewhere.
The European Union is seeking a consensus among all members to impose a complete embargo on Russian oil exports over Putin’s attack on Ukraine.
Bank of America stated that $120 per barrel oil prices are “in sight” and “a sharp contraction” could push prices past $150 per barrel.
Higher oil prices hurt consumers, but they yield higher royalties and revenues for energy states like Alaska.
Strong oil prices already delivered a windfall for the state in 2022 and boosted investments in the $81 billion Alaska Permanent Fund, which delivers annual dividends to every resident.
Planning a car trip this Memorial Day weekend? Be prepared for gas prices at more than $5 per gallon in Fairbanks.
Gasoline prices are at their highest in a decade. The national average is $4.59 per gallon but are much higher across Alaska.
In Fairbanks, gasoline was selling for $5.12 per gallon Friday at Costco on College Road, and $5.19 per gallon at Holiday on South Cushman Street.
Driving up prices are higher costs for crude oil and U.S. demand at record levels.
Russia’s attack against Ukraine is impacting oil prices. Russia has been a major energy supplier to European countries, but many are seeking sources elsewhere.
AAA reported that higher prices at the pump are not keeping American motorists off the roads.
The number of motorists traveling this three-day weekend is expected to be near pre-pandemic levels.
Fertilizer maker Nutrien Ltd. is planning a new nitrogen fertilizer plant in Louisiana that sequesters carbon dioxide emissions, the source of greenhouse gas.
Is an Alaska plant far behind?
The company closed facility in Nikiski in 2007. There are no plans to reopen it without a long-term supply of natural gas, Petroleum News reported this week.
The Louisiana fertilizer plant by contrast continues in operation, with access to natural gas and a CO2 pipeline. Plans for that plant involve capturing 90% of carbon dioxide emissions and sequestering them underground.
There is financial incentive for the storage. The U.S. government provides a tax credit of $70 per ton for sequestration.
Nutrien also hopes to use the ammonia it produces as carbon-free fuel for futuristic ships now in the design phase.
Nutrien has not abandoned the Nikiski facility either. The company applied to the state Department of Natural Resources in March for an extension of its wharf permit at the facility.
The company estimates that it would need to invest $200 million and require a steady flow of natural gas to operate, Petroleum News reported.
The University of Alaska Board of Regents will hold their first in-person board meeting next week after a two-year hiatus due to Covid-19.
Regents will meet Thursday and Friday in Anchorage to approve the university system’s budget for fiscal 2023.
The budget includes a 2% salary increase for non-bargaining staff, $3.5 million for health program faculty to meet workforce demands, and $1 million for teacher education, among other items.
Meanwhile, regents have approved pay raises for union faculty but the union says the approval is too early as negotiations continue, according to Education Week.
“The university cannot provide salary and benefit increases to any union member without the Legislature including the monetary terms of the collective bargaining agreement in the budget as required by law,” President Pat Pitney said in a statement to university stakeholders.
But the faculty raises approved by the regents did not get submitted in time to be considered by the Legislature in the regular session that just ended.
Putin’s worst nightmare
U.S. Sen. Dan Sullivan is calling the nominee for U.S. military commander in Europe “Putin’s worst nightmare.”
Gen. Christopher Cavoli is expected to be confirmed to lead the U.S. European Command and as NATO’s supreme allied commander.
“I would say you are Vladimir Putin’s worst nightmare and couldn’t be more qualified than probably any other member of the military,” Sullivan, a member of the Senate Armed Services Committee, told the general at a confirmation hearing last week in DC.
Cavoli has been serving as commanding general of the U.S. Army Europe and Africa. Cavoli would lead U.S. forces in Europe that now number more than 100,000.
