Commentary:  In an Anchorage Daily News Op-Ed this last Tim Bradner, Alaska oil and gas, morris communications, adn, lng, trucking, Photo by Dave Harbourweekend, columnist Tim Bradner (NGP Photo) provided a current shapshot of gas pipeline projects.  

Clearly, the gasline momentum today flows from government investment and incentive whereas the projects of the past were privately rooted.  

He concluded the column with a concern as to what would happen were Cook Inlet explorers to discover significant new gas reserves that could be less costly for consumers than LNG hauled down from the Alaska North Slope (ANS), or gas molecules transported nearly 800 miles from the ANS to Southcentral Alaska.

One answer is fairly obvious, any duplication of facilities, or facilities surplused by future events would involve costs to be borne by either the government or utility ratepayers.

While Bradner’s review of the situation and questions are logical, we would suggest readers keep a focused eye on an even more important priority.

Trans Alaska Pipeline System (TAPS) throughput is the keystone supporting the entire economic superstructure of Alaska.  If TAPS fails, the massive engine of government, fueled 90% by TAPS enabled revenue, would be in crisis as would the oil industry in general.  The outmigration from Alaska would make the late 1980s seem blissful.  With massive outmigration comes massive reduction in demand for energy.  With much less energy required to run a state in economic ruin, the remaining Cook Inlet reserves could very well be enough to sustain remaining consumers.  That, in turn, would strand all Alaska North Slope investment designed to move natural gas to consumers south of the Brooks range.

And. someone would have to pay at a time when the ability of government and ratepayers had reached a new low point.

So, what is the point of this observation.  While it may be politically expedient for government to invest and try to manipulate all current gasline projects on the table, it would be wise to place top priority on TAPS throughput.

How does one put maximum emphasis on a healthy TAPS:

  1. Fight relentlessly against environmental activism and the Obama Administration’s overreaching jurisdiction.  From federal lands come long term hope for TAPS throughput (i.e. ANWR, OCS, NPR-A).
  2. Fight relentlessly against overtaxing and overregulating natural resource companies that provide the primary source of revenue and jobs to the state.  The most immediate potential source of new TAPS throughput is from investment in existing ANS reservoirs.

If Alaskans aren’t willing to undertake the above two efforts, they will receive as reward, a state devoid of means to make a living and a very real possibility the state will become a ward of the federal government.

Hopefully, with united effort, Alaskans will work together to improve federal and state investment climates.  A strong, sustainable economy would be an important gift for our kids and would support the state’s continuing prosperity.  

That in turn would provide financial support for new sources of energy and energy projects.