Mercedes Mullins
Fossil fuels are the most common energy source in Alaska, with oil and gas drilling projects scattered across the state. Alaska has some of the highest electricity and gasoline prices in the US, and its per capita energy consumption is the highest in the nation. In 2024, Alaska generated about 30% of its total electricity from renewable energy sources, with wind energy resources abundant along its coastline. However, the state also has vast fossil fuel deposits, with up to 1/8 of the world's coal resources found in Alaska. Alaska's electricity infrastructure differs from other states, as it is not linked to large, interconnected grids. As a result, many rural communities rely on diesel-fueled electric generators for power.
| Characteristics | Values |
|---|---|
| Fossil fuels used for | Heating, electricity, and transportation |
| Communities dependent on fossil fuels | Remote communities disconnected from a centralized power grid |
| Challenges | Transportation costs, fuel storage costs, adverse health and environmental effects, price volatility of oil |
| Natural gas reserves | 9,424 billion cubic feet |
| Petroleum consumption per capita | Second-highest in the US |
| Jet fuel consumption per capita | Highest in the US |
| Electricity consumption | Lowest in the US, except Vermont |
| Electricity sources | Natural gas (44%), hydroelectric power (27%), petroleum (15%), coal (12%), wind, biomass, solar (3%) |
| Renewable energy sources | Wind, biomass, geothermal, hydro, solar, tidal |
| Coal reserves | 5.5 trillion tons |
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What You'll Learn
- Fossil fuels are the primary energy source for remote communities
- Oil and gas drilling projects exist throughout Alaska
- Alaska has some of the highest electricity and gasoline prices
- Natural gas reserves total 9,424 billion cubic feet
- Alaska's renewable energy sources include wind, geothermal, and hydroelectric power
Fossil fuels are the primary energy source for remote communities
Fossil fuels are the primary energy source for many remote communities in Alaska. The state has some of the highest electricity and gasoline prices in the US, and its per capita energy consumption is the highest in the nation. This is due in part to Alaska's small population, harsh winters, and energy-intensive oil and natural gas industries.
Remote communities in Alaska that are disconnected from a centralized power grid rely on fossil fuels for heating, electricity, and transportation. In these communities, the high cost of fuel is a priority concern for rural residents. The challenges of transporting fossil fuels to these remote areas, the high cost of fuel storage, the adverse effects of fossil fuel combustion on the environment and human health, as well as the price volatility of oil, have led to a need to develop and advance renewable energy options and energy-efficient technologies and behaviours.
Diesel-fueled generators are a common source of electricity for many remote communities in Alaska. Petroleum is also a significant energy source, with Alaska ranking second only to Hawaii in the share of its total electricity generated from petroleum (about
While renewable energy sources such as wind, biomass, hydroelectric, and geothermal are increasingly being used to provide power to rural communities, fossil fuels remain the primary energy source for many remote communities in Alaska. The state has a non-binding goal to generate 50% of its electricity from renewable and alternative energy sources by 2025. However, conservation initiatives are working to keep Alaska's vast resource deposits in the ground to protect the state's sensitive ecosystems and reduce the global impacts of climate change.
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Oil and gas drilling projects exist throughout Alaska
Oil and gas drilling projects exist throughout the state of Alaska, both on land and in coastal waters. Alaska has the second-highest per capita petroleum consumption, after Louisiana. Three out of ten state households rely on fuel oil, kerosene, or propane for home heating. Alaska is also the largest jet fuel-consuming state per capita and the eighth-largest in total jet fuel use.
Alaska's electricity infrastructure differs from that of the other 48 states because Alaskans are not linked to large, interconnected grids through transmission and distribution lines. Instead, many rural communities rely on diesel-fueled electric generators for power. In 2024, Alaska generated about 30% of its total electricity from renewable energy sources and had a non-binding goal to generate 50% of its electricity from renewable and alternative energy sources by 2025.
Despite the abundance of renewable energy sources, Alaska continues to pursue oil and gas drilling projects. In 2022, a ConocoPhillips gas leak forced people in Nuiqsut to evacuate their homes. Additionally, oil development has disrupted caribou herds, a source of meat for the locals. Environmentalists have criticized the Biden Administration for approving large oil drilling projects, such as the Willow Project, which is expected to result in 239 metric tons of carbon emissions.
The Pikka Project, located on the North Slope of Alaska, is another massive oil drilling project led by Australian energy company Santos, Spanish company Repsol, and ASRC Energy. The project aims to produce hundreds of millions of barrels of oil over the next three decades. Alaska's oil drilling projects have sparked concerns among environmentalists and climate activists due to their potential impact on the environment, wildlife, and climate change.
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Alaska has some of the highest electricity and gasoline prices
The state's vast coal reserves are not a primary source of electricity generation, with natural gas, hydropower, and petroleum accounting for the majority of Alaska's electricity production. Natural gas fuelled 44% of the state's total electricity net generation in 2024, while hydropower contributed 27%, and petroleum liquids fuelled 15% of the state's electricity generation at utility-scale power plants. Alaska's rivers and mountains make it ideal for hydropower, which produces nearly a fifth of the state's electricity.
Alaska's small population and harsh winters also contribute to its high per capita energy consumption, which is the highest in the nation. Oil and natural gas industries in the state are energy-intensive, further increasing consumption. The state is a major fueling stop for military aircraft and commercial flights between the United States and Asia, contributing to its high jet fuel consumption.
Rural communities in Alaska often rely on diesel-fueled electric generators for power, and electricity prices in these areas can be three to five times higher than in urban areas. To address this, the state provides financial assistance to 82,000 residents in 188 local communities to help cover the cost of electricity. Alaska is also building a nearly 400-mile alternative fuel corridor between Anchorage and Fairbanks to promote the use of renewable and alternative energy sources.
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Natural gas reserves total 9,424 billion cubic feet
Alaska has vast fossil fuel resources, with oil and gas drilling projects located throughout the state, both on land and in coastal waters. The state has the second-highest per capita petroleum consumption in the US, after Louisiana. Alaska also has the highest per capita energy consumption in the US, due to its small population, harsh winters, and energy-intensive oil and natural gas industries.
Natural gas reserves in Alaska total 9,424 billion cubic feet. Natural gas plays a significant role in the state's energy mix, fuelling 44% of Alaska's total electricity net generation in 2024. This reliance on natural gas and other fossil fuels, such as petroleum and coal, has environmental consequences. Alaska's electricity infrastructure is unique compared to other states, as Alaskans are not linked to large, interconnected grids. Instead, many rural communities rely on diesel-fueled electric generators for power.
Alaska's renewable energy sector is growing, with a non-binding goal to generate 50% of its electricity from renewable and alternative sources by 2025. Wind energy resources are abundant along the state's coastline, and biomass fuels, such as wood and fish byproducts, are also used for renewable power generation. However, Alaska also has an abundance of coal resources, with up to one-eighth of the world's total coal located in the state.
Conservation efforts, such as those led by the Alaska Conservation Foundation, aim to protect Alaska's sensitive ecosystems from destructive resource extraction and mitigate the impacts of climate change. These initiatives work to keep fossil fuels in the ground and promote the development of renewable and alternative energy sources.
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Alaska's renewable energy sources include wind, geothermal, and hydroelectric power
Alaska has abundant fossil fuel deposits, including coal, oil, and natural gas. However, the state also has a wealth of renewable energy sources, including wind, geothermal, and hydroelectric power.
In 2024, Alaska generated about 30% of its total electricity from renewable energy sources, with a non-binding goal to increase this to 50% by 2025. Wind energy is abundant along Alaska's coastline, with seven wind farms located mostly along the southern and western coasts and on the Railbelt grid. Small wind energy facilities, including wind-diesel hybrid systems, provide power to rural communities off the main grid. In 2024, wind power supplied about 6% of Alaska's renewable electricity.
Alaska's many rivers offer some of the best hydroelectric power potentials in the nation. Hydroelectric power already provides almost one-quarter of the state's electrical energy, mostly in Southeast Alaska. There are a number of established hydroelectric projects in the state, including the Tazimina project, which provides power to several small villages, and the Bradley Lake, "Four-Dam-Pool", and Eklutna projects near Anchorage.
Alaska also has geothermal energy potential, with many potential geothermal energy sites located in the Interior, in the southeast, and around the Wrangell mountains. The state's only geothermal power plant, a 400-kilowatt facility at Chena Hot Springs, was built in 2006. Geothermal energy is used to generate electricity, heat buildings, and provide heat to greenhouses, among other uses.
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Frequently asked questions
Fossil fuels are available in Alaska and are the most common energy source for heating, electricity, and transportation in remote Alaskan communities. Alaska has substantial natural gas production and is the largest jet fuel-consuming state.
Oil and gas drilling projects exist throughout Alaska, and the state has six refineries. Alaska also has substantial marketed natural gas production, most of which takes place in the Cook Inlet.
Alaska has been working to develop renewable energy sources and currently has many hydroelectric power plants, wind energy projects, and biomass fuels.
