By ROBERT SEITZ
In my commentary of Dec 22, 2024 in Must Read Alaska I stated, “Now is the time to remove the impediments to progress in oil and gas development in Alaska so our Cook Inlet natural gas production will become popular again, and increased production of oil from the North Slope can once again be a major focus for our efforts.
That is where our economy will be built and which will ensure our ability to put forth balanced budgets in the future, while still providing full Permanent Fund dividends to our citizens.”
On Nov 24, 2024 my commentary included “Instead of only considering raiding the dividend, why not consider long-term finances for the State of Alaska? I think a priority for this legislative session is to work on encouraging, incentivizing and enabling legislation to ensure active interest in any lease sales which might be arranged in the near future.
One of the most important objectives for Alaska to work on at this time is to get increased oil flow in the Trans Alaska Pipeline, with a goal of a million barrels a day or more so that we can have assured revenue sufficient to fund the necessary items of the annual budget well into the future. The way to ensure a balanced budget with the least hassle is to ensure future revenues. Oil and gas are the best revenue sources we have.”
If we can get some short timeline projects in the works that can get some additional crude oil into the Trans Alaska Pipeline while the longer term projects are being developed, would help Alaska fiscally. “North to the Future” won’t work if there are not some positive actions towards economic development through our extractive industries.
SB 92 or the “Yundt Tax” offered by Wasilla freshman Sen. Rob. Yundt is definitely an action that will hinder desire for oil producers to invest in increased oil production for Alaska. The uncertain tax on oil and gas producers is much of what drove the major oil companies away. Now is time to encourage oil and gas production as well as mining and timber.
We need elected officials who find ways to reinvigorate our industries which have been sabotaged by unnecessary environmental constraints that have halted oil production projects which could have kept the coffer full. Alaska is not warming two to three times faster than the rest of world, as I have pointed out a number of times.
Then for another boost for Alaska, do whatever it takes to get more gas wells drilled in Cook Inlet. There is enough gas to last maybe another 200 years. The lowest cost way forward for energy in the immediate future is to poke holes into the Kitchen Light Unit. And then at least get the gas pipeline from the North Slope to Fairbanks so we can reduce the wood burning in the interior and maybe build a natural gas fueled power plant in Fairbanks to feed the Railbelt Electric System from the Northern end. We need energy, high density energy, which can be there year round.
Robert Seitz, is a professional electrical engineer and longtime Alaskan.
