KTVA: Energy industry can play role in economic recovery, Murkowski says

Sen. Lisa Murkowski says the energy industry can play a big role in the country's economic recovery.

Murkowski is the chairman of the Senate Committee on Energy and Natural Resources. She led a hearing Tuesday examining the impacts of the pandemic on the country's energy sector. 

Many oil companies slowed production when oil prices plunged to historic lows. Not only was it caused by low demand during the pandemic, but an oil trade war between Saudi Arabia and Russia. Sen. Murkowski said the decline in demand can be especially hard for states like Alaska.

"For a producing state like Alaska, less production and less investment and less development are pretty ominous signs over the horizon," the senator said. "That's why I hope truly, the demand has been paused rather than destroyed."

Murkowski mentioned this could be a time when companies seize new opportunities.

"The oversupply and low prices that we have seen may also incentivize new businesses to be created," she said. "We're seeing reports that many companies are looking to make their supply chains more resilient by shifting more of their necessary infrastructure and capital back home to the United States."

Alaska's North Slope Crude has slowly increased over the past few weeks. It closed at more than $42.00 a barrel Tuesday, according to the Department of Revenue.