Alaska is on the brink of an energy crisis as Cook Inlet gas reserves rapidly deplete, threatening Anchorage’s heating and electricity stability by 2028.
Cook Inlet Gas Reserves Near Exhaustion
For decades, Cook Inlet served as the backbone of Alaska’s energy system, providing reliable gas for heating, electricity, and even exports. Now, production volumes are falling sharply, and investment in new projects has slowed, raising concerns over the region’s future energy security.
In the mid-20th century, Alaska was viewed as a key energy reserve for the United States, with vast oil and gas deposits fueling both domestic needs and exports. Over time, however, many fields began showing signs of depletion. Cook Inlet, once the lifeline of southern Alaska, is no longer delivering sufficient supply.
Long-Term Crisis, Delayed Solutions
Experts note that the gas shortage issue has been discussed for more than 15 years, yet no lasting solutions have emerged. The challenges are rooted in high development costs, harsh Arctic conditions, and resistance from environmental groups concerned about fragile ecosystems. As a result, major energy companies have scaled back their presence in the region.
Gas is not just a heating source in Alaska—it powers electricity generation as well. With the state’s extreme climate, reliable supply is critical. Utilities warn that by 2028, Alaska may be forced to import gas, driving up heating and electricity bills by 10–40 percent. Such a shift would also make the state’s economy more vulnerable to external market fluctuations.
Washington has floated solutions ranging from renewed Arctic exploration under the Trump administration to renewable energy projects. However, Arctic development faces legal battles and environmental opposition, while wind and hydropower remain too small to replace gas for heating. LNG import terminals are under consideration but would require massive infrastructure changes.
Despite its rich resource base, Alaska now faces a stark choice: invest heavily in new extraction and infrastructure or transition toward dependency on imported fuel. The outcome of this decision will shape not only Anchorage’s energy future but also the long-term economic stability of the state.
