“We are committed to developing our Alaska business competitively, and promoting policies that will allow young Alaskans to have a future in a thriving Alaska oil and gas industry.”
- Janet Weiss, BP Alaska President
BP Alaska Hire Report, 2016
For some time now the handwriting's been on the wall about BP's intention to leave the state. In the heyday of Alaska's oil production, the rich Prudhoe Bay fields provided the oil giant with easy pickings and huge profits. Now that those fields are aging,
it's time for a smaller, nimbler, more efficient company to step in and take it to the finish line. Hilcorp is exactly that type of company.
Whether or not you work for BP, you'll likely be impacted by this move. Either the company you work for does business with them, the events you attend are supported by them, the organization you volunteer with receives funding from them, or you simply
own a home in the Anchorage area
It's too soon to tell how cuts to BP's 1,600 member workforce will impact the real estate market here in Anchorage. A lot of it depends on how many of their people will leave the state to take jobs with BP elsewhere, how many will leave the company with
a nice severance package, how many will go to work for Hilcorp, and how many new people Hilcorp brings up. Any way you slice it, expect the listing inventory in Anchorage to increase sharply over the next year, particularly in the $350,000 to $650,000
price range. Unless that increased supply is absorbed by an influx of new people to the state, we're likely to see some downward pressure on values.