In 1959, years of devoted struggle by the people of Alaska came to fruition when more than 663,000 square miles of isolated wilderness on the lower fringe of the Arctic was integrated into the U.S. and became the 49th and largest state. Their struggle hinged on the argument that the development of Alaska’s untapped natural resources would create an economic lifeline for its people. Fifty-two years later, their reasoning has proved to be well-founded. Home to North America’s largest oilfields, Alaska has produced more than 15 billion barrels of oil, the revenues of which have helped the state achieve budget savings of over $15 billion and a permanent fund that topped $40 billion in June.

In recent years, however, a harsh truth has emerged. Production has hit a new low, and with 88% of the state’s economy dependent on oil, Alaska now stands at a crossroads between painful decline or continued prosperity. Furthermore, as contention continues to heat up between nations over access to oil and gas plays in the Arctic Circle—estimated at 22% of global reserves—Alaska is eager to position itself on the front line. This report takes a look at a state facing an urgent choice, and how a reinvigorated political leadership, aided by global energy trends, is awakening Alaska to its full potential.