ADN Editorial: … That’s what was most frustrating about the state Senate refusing to even hold hearings on House Bill 9, which would have empowered the Alaska Gasline Development Corp. to pursue an in-state "bullet" line with a target of a 2013 open season and given AGDC a seat at the table for discussions on the LNG export project where it could leverage its work and the 417 miles of right of way it possesses.  If Alaska’s state senators have an alternative way to get gas to state residents and relieve crippling energy costs, they have yet to present it. They appear content to place the destiny of the state in the hands of others, namely the North Slope producers some legislators so enjoy vilifying.    …

Comment:  Last week, we linked to our Alaska Business Brad Keithley, Alaska, oil and gas taxes, ACES, BlogMonthly article on Intergenerational Ineqity (See Delta Discovery Letter).  We prepared the draft for submission before reviewing the latest work of the University of Alaska’s Institute of Social and Economic Research (ISER).  In the Blog piece, below, Brad Keithley (NGP Photo), identifies from the ISER report a string of logic that demonstrates how current state spending policy is eroding the "nest egg", and threatening the economic future for our kids or, put another way, creating intergenerational inequity.  -dh

Thoughts on Alaska Oil and Gas, by Brad Keithley.  In March, the University of Alaska Anchorage’s highly respected Institute of Social and Economic Research (“ISER”) published a paper entitled “Managing Alaska’s Petroleum Nest Egg for Maximum Sustainable Yield” (.pdf). The paper is the continuation of an effort started last year (.pdf) by ISER’s Scott Goldsmith to determine the appropriate level of annual state government spending, if the objective is generally to maintain a consistent, inflation adjusted level of state spending over time.  …   "Alaska Fiscal Policy| Like fish, if the current rate of “take” (i.e., state spending) is too high – higher than can be supported by the state’s asset base on a sustained basis – the state’s “nest egg” is eroded and the revenue available for spending in future years is reduced. In short, setting the rate of state spending at higher than sustainable levels will leave future generations of Alaskans worse off than the current generation. … Sadly, it appears that Alaska’s most recent generation of political leaders has failed to grasp this principle and is leading Alaska off the fiscal cliff." 

THOUGHTFUL THURSDAYS, by Deborah Brollini.  Oil and gas, and pipeline issues are complex and can be intimidating. Alaska Energy Dudes and Divas launched its "Thoughtful Thursdays" series last week to help citizens better understand the issues facing you, your family, and the State of Alaska. Sit down and relax in a fun environment and speak with experts from the oil, gas and energy sectors and have your pressing questions answered. 6/21/12 – Admiral Tom Barrett, President of Alyeska Pipeline Service Company