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ANWR ANWR ANWR
Never ever opening ANWR because the bunny huggers might attack is foolish.
I have a few points on the subject and feel I should reveal that I am a lifelong Alaskan. Here in Alaska we see things a bit differently. We take great pride in our stewardship of our Natural Resources that include world class pristine fisheries - wildlife conservation and yes of course OIL. It's no coincidence that two of Alaska's largest sources of revenue and growth are derived from tourism AND oil - both directly related to Alaska's natural resources.
1. ANWR isn't just about oil my friends, there are vast stores of NATURAL GAS which is a byproduct of drilling for oil. NATURAL GAS which is clean, efficient and yes they can actually convert trucks to run on it (the Alaska North Slope Oil Producers have converted all their vehicles to natural gas because it doesn't have to run contantly in -50 F weather like diesel does). Ask your friends and neighbors if they would rather heat their homes with natural gas or home heating oil (aka diesel) - I promise you the price of natural gas is far more stable than diesel today.
2. The largest source of oil right now in North America, per most oil economists, resides in the Oil Sands of Alberta Canada. These Sands in Alberta Canada NEED Natural Gas to extract the oil from the sand - oil which could have a significant impact on overall supply in the North America.
Relatively speaking - the proximity to Alaska's vast Natural Gas and Alberta's Oil Sands - is a gift from the oil gods. The potentially mutually beneficial economics of Alaska's Natural Gas and Alberta's Oil Sands doesn't create aboslute energy independence but a relationship with Canada is a big improvement over than the one we have with Middle Eastern Nations.
As we speak the Alaska's North Slope oil producers (BP & Conoco Phillips) are in the midst of joint-planning to construct North America's largest private construction project ever - a natural gas pipeline to Alberta from Alaska's North Slope - intended to provide the natural gas needed to extract the oil from those sands.
3. Alaska is an economically robust state because of its PUBLIC OWNERSHIP of its resources - punishing this economic growth because it is derived from oil is self defeating. So states are only allowed to profit from politically correct industries? By that argument California should be forced to shut down its porn film industry.
Today Alaska is forced by federal law to send the bulk of its oil to the Port of Los Angeles for refinement and delivery to the West Coast. This is market interference by the federal government - we can freely trade plastic goods with China but not oil? Where then does China get its oil - the Sudan, Iran or Russia?
Why is Alaska (by federal law) limited to sending a mere 13% of its production to Asia - arguably the highest bidder and fastest growing market of oil? Instead of consuming the oil doesn't it make more sense to sell ours to the highest bidder - even if it isn't the U.S.?
4. Because ANWR are federal lands - besides the oil supply entering the market, (admittedly slight and more long term than short) the federal government would earn TAX REVENUE from that production.
Federal Tax Revenue that could offset the staggering deficit and/or personal income taxes - might not be immediate - but better late than never.
Does anyone seriously think that Alaskans on the whole want to trash our state just for profit? Look deeper into the actual practices of directional drilling and specifically arctic construction practices - they are in reality a lot less impactful than the Sierra Club would have you believe.










Comments (42)
I just wanted to add one more thing. Commonly said here in Alaska with regards to drilling here vs. the MidEast.
In Alaska, we don't shoot people in order to produce our oil.
May 2, 2008 2:45 PM | Reply | Permalink
You failed to note that the State of Alaska receives 90% of the revenues from oil and gas leasing on federal lands within the state.
May 2, 2008 2:58 PM | Reply | Permalink
Does that make the State of Alaska 'wrong' for doing so?
May 2, 2008 3:03 PM | Reply | Permalink
It eviscerates your point about federal revenues, and calls into question the motivation of the state.
May 2, 2008 3:07 PM | Reply | Permalink
Eviscerates?
Much like the Capital Gains Tax works - the more Capital Gains people earn - in spite a lower tax rate - the more tax revenue the Federal Government collects.
So only the State of Alaska is greedy for its pursuit of more oil tax revenue?
What about Louisiana? They could sure use the revenue too.
http://www.theadvertiser.com/apps/pbcs.dll/article?AID=/20080430/NEWS01/804300323/1046
"Louisiana reaps oil revenue
Surplus funds pile up as state gets $12 million for each dollar per barrel"
"Because of oil and other factors of the state economy that are producing more revenue than predicted, the Revenue Estimating Conference boosted its original prediction more than $800 million during the year, said Greg Albrecht of the Legislative Fiscal Office and adviser to the REC."
May 2, 2008 3:14 PM | Reply | Permalink
Much like the Capital Gains Tax works - the more Capital Gains people earn - in spite a lower tax rate - the more tax revenue the Federal Government collects.
That theory has been discredited.
May 2, 2008 3:20 PM | Reply | Permalink
By who?
Capital Gains taxes haven't yielded more revenue SINCE they were lowered to 15%?
May 2, 2008 3:47 PM | Reply | Permalink
Google "Laffer Curve."
May 2, 2008 3:54 PM | Reply | Permalink
By your argument its only benevolent when the Federal Government earns oil tax revenue but not when individual states do.
May 2, 2008 3:16 PM | Reply | Permalink
There's no reason that the federal lands, which belong to all Americans, should be developed solely for the benefit of Alaskans. Ninety percent is unreasonable--in other states, it is set at fifty percent.
May 2, 2008 3:18 PM | Reply | Permalink
Alaska is an economically robust state because of its PUBLIC OWNERSHIP of its resources.
Alaska is an economically robust state because it gets so much of the federal dole.
May 2, 2008 3:22 PM | Reply | Permalink
I am wondering if you should also mention that nice dividend check you get every year for oil and gas production? A personal financial incentive seems a bit relevant in considering your support of ANWR drilling.
Also, the point Eln made holds, Alsaka is one of the largest suckers at the public teet of any state in the nation.
May 2, 2008 3:46 PM | Reply | Permalink
Alaska's cost of living is one of the highest in the country.
There is no local agriculture to speak of.
Our medical costs are roughly 30% higher than anywhere else in the nation.
We have NO public transportation to speak of. We are entirely reliant on driving to work - that is IF there is even a road to our place of business.
We pay more for everything sold in retail stores - after all every single item is shipped via barge or via trucks through Canada.
When I go on vacation to the lower 48 I never eat out - I get giddy being able to buy a weeks worth of groceries for $50. The same groceries cost over $100 in Alaska.
The average home price in Anchorage Alaska right now is about $310k - affordable housing is nonexistent in urban/economic centers. A 1 bedroom apartment in Anchorage rents for no less than $900 a month.
The dividend checks we get are an annual economic stimulus check - just like the one you are all about to receive from the federal government. AND its paid via a portion of the interest on a 30 billion dollar permanent fund (completely separate from the States annual budget) that the State of Alaska had the foresight to set up when oil taxes were first set up.
May 2, 2008 3:55 PM | Reply | Permalink
Every year since statehood or just the past decade?
Alaska became a state in 1959 - I wonder how they ranked in federal funding for the following 3 decades?
May 2, 2008 3:59 PM | Reply | Permalink
So Alaska is a welfare state because thats how Alaska is depicted by the MSM.
Alaska just provided more in educational funds and more in Medicaid funding via the surplus state budget earned via oil tax revenue - would you rather the State of Alaska looked to the Federal Government to fund everything? The State of Alaska also provides a monthly check for retirees - should retirees rely solely on Social Security? Look more carefully instead of gobbling up the rhetoric - Alaska is working very hard to reduce its dependence on federal funding.
By the way - most of the federal funds Alaska receives has to do with highway construction - we don't have the benefit of interstates and our state is seriously behind when it comes to infrastructure compared to other states - neglected by some measures.
Federal funding that provides jobs and therefore more income tax revenue.
Funny - Boston's Big Dig never gets mentioned when it comes to the bottomless pit of Federal matching highway funds.
I guess Louisiana is justified in its windfall oil tax revenue - after all they had a nasty natural disaster.
May 2, 2008 3:46 PM | Reply | Permalink
most of the federal funds Alaska receives has to do with highway construction
The lost federal revenue from oil and gas leasing is a far greater benefit to Alaska than highway funds. So your comment is misleading. Perhaps you should push your state legislators into putting some of that revenue into highway construction instead of an annual handout to citizens.
Funny - Boston's Big Dig never gets mentioned when it comes to the bottomless pit of Federal matching highway funds.
It gets plenty of mention, but Massachusetts is a net contributor to the federal budget, unlike Alaska.
May 2, 2008 3:59 PM | Reply | Permalink
Highway funding are always state to federal matching fund agreements. What the feds pay the state pays. Projects don't go forward without funding from both.
May 2, 2008 4:03 PM | Reply | Permalink
We take great pride in our stewardship of our Natural Resources that include world class pristine fisheries - wildlife conservation and yes of course OIL.
Some Alaskans do. However, your politicians fought tooth and nail for the pipeline, which environmentalists warned could result in catastrophe for Prince William Sound. The environmentalists were proved correct. As far as wildlife conservation goes, Alaska has been dragged kicking and screaming the whole way.
May 2, 2008 4:04 PM | Reply | Permalink
Umm the pipeline didn't spill - a tanker did - a privately owned tanker did.
And as we speak the owners of that tanker Exxon is fighting in the Supreme Court to avoid paying the punitive portion of the civil case won against them for negligence on their part.
Alaska has been dragged kicking in screaming for what? To maintain state control over game management? We don't have wildlife preserves - we have game management areas. People actually hunt for food here - huge fees are imposed on non-residents who trophy hunt.
I find it interesting that the State of Alaska is the only one to maintain its fisheries when none of the other West Coast states have. King salmon fishing has been shut down completely this week in every West Coast state but Alaska - thats not an accident.
I find it even more interesting that a lot of the so-called environmentalists hail from these West Coast states - whose environments have been trashed by its own residents. It's cool to build more tract homes and highways in California - further increasing wildfire devastation. But its evil to use 10 acres out of a million in the arctic to drill for oil - and move it out via ice roads instead of asphalt superhighways.
May 2, 2008 4:11 PM | Reply | Permalink
Duh--the reason the tanker was there was the pipeline. Just as enviros predicted.
May 2, 2008 4:28 PM | Reply | Permalink
A tanker delivering oil to the market you buy your gas from.
May 2, 2008 5:25 PM | Reply | Permalink
And that is relevant how?
May 3, 2008 11:37 AM | Reply | Permalink
Just to be clear - its moral for Louisiana to earn windfall oil tax revenues, but immoral for Alaska to do the same?
May 2, 2008 4:05 PM | Reply | Permalink
These aren't windfall taxes--they are charges to the oil companies to take oil from federal public lands, which all Americans own. And yeah, Louisiana sucks too.
May 2, 2008 4:44 PM | Reply | Permalink
So... federal revenue earned by each state must be done by what?
Income taxes alone? Corporate taxes? By the way the Laffer curve relates to INCOME taxes - not taxes on capital gains - which are taxed separately from income.
http://www.reuters.com/article/pressRelease/idUS182962+23-Jan-2008+PRN20080123
"President Bush's investment tax
cuts helped stimulate the economy and increase government revenue, and raising
the capital gains tax rate, as some are now proposing, would be harmful to the
economy at a time when it is once again in need of stimulus, according to a
new study from the National Center for Policy Analysis (NCPA)."
You should publish a list of morally upright tax revenues - that way I can push my state legislators to give up all this evil oil tax revenue stuff and let the federal gov't tax the hell out of people's wages.
By the way - the major points in the entire discussion are the nation's energy needs and its utter lack of influence on pricing.
Every single citizen in this country consumes energy - some produced domestically most of it produced in foreign lands. No such thing as a perfect moral solution - one that benefits the people that live and work in the U.S. is worth compromising for.
May 2, 2008 5:24 PM | Reply | Permalink
Be specific. The federal revenue from oil is derived from oil production on federal lands.
Much of both Louisiana's and Alaska's oil tax revenue is derived from state owned lands - therefore only the citizens of each state own a share in it - not all Americans.
May 2, 2008 5:28 PM | Reply | Permalink
I just looked up the census reports for 2006.
http://www.census.gov/prod/2008pubs/cffr-06.pdf
Per capita Alaska is ranked one of the highest, roughly $14k in federal funding - we have approximately 600,000 residents - thats $8.4 billion in total federal funds.
Massachusetts is ranked lower in per capita federal spending at $9k - with over 6 million residents - their NET FEDERAL FUNDING was $54 billion.
"Funny - Boston's Big Dig never gets mentioned when it comes to the bottomless pit of Federal matching highway funds.
It gets plenty of mention, but Massachusetts is a net contributor to the federal budget, unlike Alaska."
Your are misinformed or just have a misperception.
May 2, 2008 4:17 PM | Reply | Permalink
Nope, not misinformed. Massachusetts as a whole gives more to the federal government than it receives, unlike Alaska.
May 2, 2008 4:29 PM | Reply | Permalink
By which means? Income taxes? Makes sense since they have 10 times the population of Alaska - boy I wonder how much oil Massachusetts consumes NET, compared to Alaska?
May 2, 2008 5:30 PM | Reply | Permalink
Dept of Interior 2007 reflects more of a 75/25 split in revenue favoring the State of Alaska with regards to Federal Oil Land Leases.
May 2, 2008 4:26 PM | Reply | Permalink
30 U.S.C. Sec. 191: All money received from sales, bonuses, royalties including interest charges collected under the Federal Oil and Gas Royalty Management Act of 1982 [30 U.S.C. 1701 et seq.], and rentals of the public lands under the provisions of this chapter and the Geothermal Steam Act of 1970 [30 U.S.C. 1001 et seq.], shall be paid into the Treasury of the United States; and, subject to the provisions of subsection (b) of this section, 50 per centum thereof shall be paid by the Secretary of the Treasury to the State other than Alaska within the boundaries of which the leased lands or deposits are or were located ... and of those from Alaska, 90 per centum thereof shall be paid to the State of Alaska for disposition by the legislature thereof.
May 2, 2008 4:34 PM | Reply | Permalink
Do you remember the circumstances that led to that agreement?
It's called the Alaska Native Claims Settlement Act.
http://www.pbs.org/wgbh/amex/pipeline/peopleevents/e_claims.html
"The dispute was finally resolved and President Richard M. Nixon signed into law the Alaska Native Land Claim Settlement Act on December 18, 1971. The law gave Alaska Natives 44 million acres of land and $962.5 million. Half of the money was to be paid from royalties on oil production."
Damn those politically incorrect Alaska Natives. They should have passed on the deal and opened casinos instead - far more moral than profiting from oil.
While yer at it - check out Massachusetts net oil consumption vs. Alaska's - then look at Massachusetts contribution to national energy needs vs. Alaska's.
You don't have to like it but Alaska has resources that Massachusetts does not.
May 2, 2008 4:56 PM | Reply | Permalink
ANCSA is only part of the story.
May 2, 2008 5:07 PM | Reply | Permalink
Do tell the rest...
May 2, 2008 5:25 PM | Reply | Permalink
The ANCSA settlement is completely separate from the provisions giving the State of Alaska 90% of the revenues. The money to native tribes comes out of the federal revenues. Don't try to confuse the two in order to garner sympathy.
May 3, 2008 11:39 AM | Reply | Permalink
Those aren't Alaska's resources--they belong to the people of the United States.
May 2, 2008 5:36 PM | Reply | Permalink
And Natives should get the same share as any other citizen of the U.S.?
May 2, 2008 5:41 PM | Reply | Permalink
Huh? ANCSA gave Alaskan native tribes a much better deal landwise than most tribes in the lower 48. And why do you keep bringing up ANCSA? It's completely irrelevant.
May 3, 2008 11:44 AM | Reply | Permalink
By your subjective measurement those resources are 1/2 Alaskan owned.
So let me get this right. It's evil for a state to profit from oil production but benevolent for the federal government to profit from oil production?
May 2, 2008 5:43 PM | Reply | Permalink
What are you babbling about? I didn't say one was evil and the other wasn't; I said that Alaska gets a disproportionate share.
May 3, 2008 11:42 AM | Reply | Permalink
"as a whole" put a number to it.
May 2, 2008 4:32 PM | Reply | Permalink
Since you are measuring federal funding to Alaska per capita - why don't you use federal revenue contribution per capita by Massachusetts?
Again - put a number to it and cite your unit of measure.
May 2, 2008 4:33 PM | Reply | Permalink
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