The port of Valdez was named in 1790 by the Spanish explorer Salvador Fidalgo after the Spanish naval officer Antonio Valdés y Fernández Bazán. A scam to lure prospectors off the Klondike Gold Rush trail led to a town being developed there in 1898. Some steamship companies promoted the Valdez Glacier Trail as a better route for miners to reach the Klondike gold fields and discover new ones in the Copper River country of interior Alaska than that from Skagway. The prospectors who believed the promotion found that they had been deceived. The glacier trail was twice as long and steep as reported, and many men died attempting the crossing, in part by contracting scurvy during the long cold winter without adequate supplies. The town did not flourish until after the construction of the Richardson Highway in 1899, which connected Valdez and Fairbanks. With a new road and its ice-free port, Valdez became permanently established as the first overland supply route into the interior of Alaska. The highway was open in summer-only until 1950, when it was operated as a year-round route. In 1907, a shootout between two rival railroad companies ended Valdez's hope of becoming the railroad link from tidewater to the Kennicott Copper Mine. The mine, located in the heart of the Wrangell-St.Elias Mountains, was one of the richest copper ore deposits on the continent. The exact location of the right-of-way dispute, in which one man was killed and several injured, is located at the southern entrance of the canyon on the Valdez side. A half-completed tunnel in the canyon marks the end of railroad days in Valdez. A rail line to Kennicott was later established from the coastal city of Cordova.
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Valdez is mother nature's year round playground. It is a great place to visit, with a spectacular mix of tidewater glaciers, rain forests and mountains. Valdez enjoys a yearround temperate climate, which offers unparalleled recreational opportunities throughout the year. After you see the breathtaking mountain scenery, experience wildlife and glacier vewing in Prince William Sound, raft nearby rivers, sail or kayak the Sound, you will understand that even Mother Nature has her favorites.
Valdez is connected to the interior of Alaska by the Richardson Highway, and is a port of call in the Alaska Marine Highway ferry system. Just north of Valdez on the highway is Thompson Pass, which has spectacular waterfalls and glaciers next to the highway. Thompson Pass is also known for treacherous driving conditions during the winter.
Valdez is a fishing port, both for commercial and sport fishing. Freight moves through Valdez bound for the interior of Alaska. Sightseeing of the marine life and glaciers, together with both deep-sea fishing, and heli skiing support a tourist industry in Valdez. The oil from the Trans-Alaska pipeline is loaded onto ships at the Valdez oil terminal. It is sometimes called the Switzerland of Alaska.
Alyeska Pipeline Service Company is one of the biggest employers in town but it started to move several positions to its headquarters in Anchorage since the town council passed a resolution charging a tax to all the tankers coming into the port to be loaded with oil. This has had an impact in the population size and the economy.
The city of Valdez was badly shaken but not destroyed in the 1964 Good Friday Earthquake. Liquefaction of the glacial silt that formed the city's foundation led to a massive underwater landslide, which caused a section of the city's shoreline to break off and sink into the sea. The underwater soil displacement caused a local tsunami 30 feet (9.1 m) high that traveled westward, away from the city and down Valdez Bay. Thirty-two men women and children were on the city's main freight dock to help with and watch the unloading of the SS Chena, a supply ship that came to Valdez regularly. All 32 people died as the dock collapsed into the ocean with the violent landslide. There were no deaths in the town.
Residents continued to live there for an additional three years while a new site was being prepared on more stable ground four miles (6 km) away. The new construction was supervised by the Army Corps of Engineers. They transported 54 houses and buildings by truck to the new site, to re-establish the new city at its present location. The original town site was dismantled and abandoned.
From 1975-1977, the Trans-Alaska pipeline was built to carry oil from the Prudhoe Bay oil fields in northern Alaska to a terminal in Valdez, the nearest ice-free port. Oil is loaded onto tanker ships for transport. The construction and operation of the pipeline and terminal boosted the economy of Valdez.
The 1989 Exxon Valdez oil spill occurred as the oil tanker Exxon Valdez was leaving the terminal at Valdez full of oil. The spill occurred at Bligh Reef, about 40 km (25 mi) from Valdez. Although the oil did not reach Valdez, it devastated much of the marine life in the surrounding area. The clean-up of the oil caused a short-term boost to the economy of Valdez.