Friday Musings:

Commentary: Nakedness

We are extremely disappointed with republican Kevin Myer and Alaska’s current democrat lieutenant governor for their continuing support of Governor Bill Walker’s socialized LNG export scheme.  For years we have provided evidence that in wake of lower shale-induced gas prices and extensive LNG export competition the producers have been right in proclaiming that, for an Alaska North Slope gas export project, “now is not the time”.  Alaska’s mostly tidewater based competitors do not have to include the cost of a massive, 800 mile Arctic gas pipeline.  Most offer better logistics, lower labor costs, more moderate working climates.  That’s why so many competing projects are underway while Alaska’s government owned scheme is stuck on high center.  Worse, Alaska is spending precious money on this Quixotic quest while mired in a fiscal crisis in the only high unemployment state in the nation.  The lack of logical, decisive, Alaskan leadership is breathtaking but few are gasping for breath out of fear they will be criticized for observing that, “The Emperor” is wearing no clothes.  See the report below.  -dh

Lieutenant governor candidates discuss LNG, taxes, Stand for Salmon in Kenai

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…. The candidates were more divided in response to another question submitted by the chamber members: ““What will need to be done to further the AK LNG Project and terminus in Nikiski?”

“I love way you word your question — it isn’t ‘Do we want it or not?’ It’s ‘How do we fast-track it?’” Grunwald responded. “Right now there’s a glut in the market for gas — we’ve got Texas and Lousiana and also Russia is selling tons of gas to China … And we definitely don’t want to deal with the Chinese. Sorry, but they’re communists, and they want to get a hold into our country, and we would be a part of that process. So we want to get private industry involved in partnership with the state.”

Jackson described the gasline plan — on which the state-owned Alaska Gasline Development Corporation has spent about $5 million a month in 2018 and which has an estimated final cost around $40 billion — as “a very expensive project for hopes, and whens, and ifs.” Wright said “the project is not profitable as it sits” and that “it’s something that at this point we need to back off on.”

Mallott and Meyer, on the other hand, agreed that the project “needs to continue on the track that it’s on,” as Mallott said.

“The market will ultimately determine the reality of this pipeline,” said Mallott. “All forecasts so far show that with the state in control and the gas supplied by the owners, with the investment potential already being finalized, that this is the final project and should be strongly supported by all Alaskans.”

Responding to those who said the project needs more private sector involvement, Meyer said the savings from tax deferrals justify a state-led project.

“The Legislature is supportive of this project, and we think it will work,” Meyer said. “But we haven’t seen the financial numbers to know yet if it will work or not. We don’t know who the investors are… But the reason it makes sense for the state to do this instead of the oil companies is because the state gets some tax advantages, federal tax advantages, that the private sector doesn’t. If this project’s going to work, I think the current proposal the governor has is the one that’s going to work.”  (Full Story Here)

Alaska Governor Bill Walker unfazed by China’s tariff threat on LNG  (SEE OUR COMMENTARY)

Gov. Bill Walker and Alaska gasline officials insist China’s immediate threat to put a slap an import tariff on U.S. liquefied natural gas should not impact the long-term viability of the $43 billion Alaska LNG Project.

On Friday, the Chinese government announced a proposal to put a 25 percent tariff on roughly $60 billion of U.S. goods the country imports, including U.S. oil and natural gas.

The potential tariffs are the latest move in a tit-for-tat trade dispute initiated by President Donald Trump earlier this year that has slowly been escalating through the summer.

The face-off between the economic superpowers is in sharp contrast to the trade-focused trip Trump and Commerce Secretary Wilbur Ross made to Beijing last November. That trip culminated in a ceremony in which some of the largest companies from each country signed trade deals before Trump and China President Xi Jinping.  (MORE HERE)

Can you believe this report from Must Read Alaska?

DAY PASSES FOR INMATES!

The Department of Corrections has implemented a new policy that allows qualified “super-volunteer” citizens to check inmates out of prison for day excursions. It’s a policy that few know about: Inmates could be the guy standing next to you right now at the coffee shop.