Calgary Herald by Graham Thomson.  …a new pipeline to pump Alberta bitumen to the West Coast for shipment to Asia is just a matter of time. At least that’s the impression you get reading between the lines in comments made by Alberta Premier Alison Redford and British Columbia Premier Christy Clark Friday afternoon.

Alaska and Saudi Arabia Face Similar Challenges Under Vastly Different Conditions

by

Dave Harbour

Our readers know that 90% of Alaska's operating budget flows from the Alaska North Slope (ANS) through the Trans Alaska Pipeline System (TAPS) which, in turn, is about 3/4 empty.  

Oil and Gas Daily reports that in letters published Sunday on his Twitter account, Saudi Arabia's prince Alwaleed bin Talal, warned that it was alarming that "92 percent of the government budget relies on oil".  He went on to discuss competition in the world and the need for diversification.  Sounds familiar.

Fairbanks News Miner Editorial.  The rejection by the U.S. Fish and Wildlife Service of a plan to conduct research about oil and gas potential in the Arctic National Wildlife Refuge was expected, but the Parnell administration is appealing the move. 

In Alaska's case, we have potential to fill TAPS with waiting reserves on the ANS–on state and federal lands.  The majority of the state Legislature has acted to increase investment on state lands by enacting oil tax reform, though some citizens and a minority of legislators are seeking to repeal that reform through referendum.  

On massive, potential reserves lying under federal lands on the ANS and off-shore, the federal government has acted on behalf of the extreme environmental agenda — and lobbyists supporting that agenda — in such a way as to delay, block or forever close off access to that potential.

But while Alaska and Saudi Arabia face similar oil dependency challenges, their political and natural resource conditions differ as extremely as do their climates.

The Saudi Kingdom is a monarchy capable of enshrining most policies by edict.

Alaska and America are democracies with decision makers put into place by the electorate; and, any edict-like executive orders or statutes or rules are created by officials whom the people freely elect.

The Saudis' main if not sole, significant economic asset is oil and its hope is to diversify by putting its wealth into income producing activity elsewhere in the world and in local manufacturing, among other alternatives.

Alaska is blessed with many natural resources and had access to most of them at the time of Statehood in 1959.  Over the years, more restrictive and confiscatory state and federal policies have killed the timber industry, are threatening the mining industry and have severely limited the enormous potential of the oil and gas industry.

So, Saudi Arabia's principle challenge is the dependence on one major resource that is under competitive siege.

Here are two chances to become involved–easily, with minimum effort.  

1.  Federal.  Attend an August 12-13,  state organized, “Federal Overreach Summit”.

2.  State.  Also, speak against the effort to repeal Alaska's oil tax reform: those who support repeal of this investment climate legislation would have short term gain over long term sustainability!

Alaska's principle challenges are self inflicted.  

Its 1959 statehood promise foreshadowed unparalleled opportunity, based on laws of the day.  

Thanks to state and federal government tax, statutory and regulatory policy since 1959, Alaska is a only a shadow of the state it could have been.

With 90% state operating budget dependence on oil production which is a quarter of what it once was, and with governmental handcuffs on future potential, America and its largest state will have no one to blame for Alaska's coming economic insolvency but the people themselves.

Citizens can make more of a big difference in Alaska than in Saudi Arabia.  We can act to support improvement of Alaska's oil tax reform policy.  We can fight the federal government's continuing encroachment on Alaska's sovereignty and we can encourage more moderate state and municipal spending in order to keep in line with our declining ANS production.  There is hope for a bright future for our Alaska families, if we work for it! 

But if we don't improve state and federal behavior, we won't have a king to blame for disastrous policy.  We won't have lack of resources to blame.  We won't even have a bad president, governor, legislature or congress to blame.  

We will have ourselves to blame for voting certain very poor decision makers into office over the last 54 years–or, for not voting at all.