Alaska & Canada Can Learn From Each Other.

In both energy production areas, liberals/socialists/enviro-activists have focused tremendous resources on creating regulatory and tax obstacles thwarting energy wealth production.

In Alaska, the most heavily socialized American state, liberal legislators during the last decade (i.e. and a, currently, socialist-leaning governor) have continuously sought to raise taxes and increase industry control.

Instead of confronting several recent years of low oil prices (i.e. and tax revenue) with dramatic/reasonable reductions in the operating budget, they have spent their savings to subsidize an unsustainably huge budget.  Their goal has been to keep government whole at the expense of the private sector, principally the oil industry.

Meanwhile, they lust over the Marxist goal of controlling the means of production.  In this case, they have created a politician and bureaucrat owned and controlled North Slope gas pipeline/LNG project called the Alaska Gasline Development Corporation.  For bonding purposes they refer to it as an “independent” entity, but they stack its board with the Governor’s yes men, influence the hiring of its executives and indirectly control its policies.  They are also engaged in creating a natural gas distribution facility in Fairbanks that is controlled by the Government approved executives who will coordinate utility rates and services with the local municipal government.

Across the border, the NEB put a nail in the coffin of the Mackenzie Valley Gas Pipeline by attaching so many conditions to its construction that costs became excessive at a time when the fracking phenomenon was providing significant new competition any Arctic natural gas delivery system.  The conservative national and Alberta governments were replaced in recent years — with socialist leaders who, in concert with other like-minded provincial leaders, began efforts to block oil and gas pipeline projects.  (Oil and gas pipelines require production of oil & gas which contribute to global warming, you know.)

So now, the chickens have come home to roost.  There is insufficient pipeline capacity to move Canadian resources.  In Alaska, foolish, socialist leaders are banking on honestly brokering their gas via long term contracts to — of all places — China.  They either forget or ignore that China and North Korea are allies still technically at war with the United Nations, including the U.S. and Canada.  They forget that China cheats and is not good for much more than purchases of Alaska’s commercial seafood fishery.  They forget about the South and East China Sea, and Formosa, intellectual property theft and unfair tariff/trade practices.  And, they ignore the fact that Alaska’s major oil companies withdrew from AGDC stating that, “the time is not right” for that project.

Meanwhile Alaska still faces a financial crisis caused by 1) overspending and 2) low oil prices and 3) static to lower Alaska North Slope production.  Canada’s leaders are recently recognizing the err of their energy policy ways.

Nero, soon after Christ’s death, probably realized the error of his dictatorial, and some might say, “socialist” ways when, finally, after leaving behind a legacy of death and destruction, he committed suicide.

It’s wiser to learn from history than learn the hard way, again and again, as Venezuela is finding, along with so many other socialist leaders more attracted to personal power and central control than to citizen prosperity and free enterprise.