“Experience is a dear teacher….”  B. Franklin/W. Shakespeare

(See Alaska Public Media story, right column.)

We would only point out that certain longtime advocates of strong state participation in an Alaska LNG project have experienced a personal reality lesson.  The lesson is that oil and gas investment is risky.  

When government and citizens become involved in energy projects, they subject themselves to risk.   This is why we have consistently counseled public officials to avoid equity investment in private projects.  

The private sector is ready, willing and able to invest in economic projects when conditions reflect acceptable risk.  Even then, the investment can go south and investors are prepared — if not happy — bear the brunt of the risk.  

That leaves the $64,000 question: “Do citizens really want their government and public dollars placed at risk by investing in private sector projects?”  

Just as the state stands to lose a minimum of several hundred million dollars on the Ak-LNG project, so is it on the verge of squandering more millions on a subsidized, government-controlled Interior Alaska natural gas distribution utility in Fairbanks.  -dh

Alaska Public Media (with audio).

Over the last two years, the Alaska LNG project bought about 630 acres of land in Nikiski, on the Kenai Peninsula. That’s where the state and its partners hoped to build a giant natural gas liquefaction plant — and several homes were razed.  But now, the project’s future is uncertain — and so is the fate of that land. Those left behind in Nikiski aren’t sure what the community will look like going forward.