Commentary by Dave Harbour on the eternal struggle between wealth producers and wealth takers.

Canada struggles with the need for oil revenue countered by the political pressure to subjugate everything, and everyone, to the concept of global warming (excuse us….  "climate change").  See the articles below.

Alaska struggles are also between those supporting jobs, good faith and fair dealing with antagonists like a state senator who believes that in a low crude oil price environment gasoline prices should be lower in Alaska than they are.   (See today's robust, Alaska Headlamp editorial for commentary on this and much more….)

We wonder if some of our elected officials fully understand oil marketing economics.  We certainly don't and are, therefore, slow to express opinions about oil and gas marketing economics.

We do know, however, that Alaska refiners compete with Lower 48 refiners who must add the cost of transportation north to Lower 48 prices.  Counter-intuitively, that tends to set the general price ranges in Alaska.  If Alaska refiners were to increase their prices too much above that range, outside refiners would sell even more product in the state than they now do.

(The free market works, if we'll let it; and, when we occasionally find a bad actor, there will be evidence and a trial and punishment.)

We also know that costs to operate in Alaska are higher than most Lower 48 refining areas.  And we must not neglect the reality of a 3/4 empty Trans Alaska Pipeline System.  The shippers transporting via the remaining 1/4 capacity of TAPS also have to pay the cost of the 3/4 spare capacity.  

In recent years, populist legislators have called for audits of gasoline prices, proving that local Alaska fuel prices are not unreasonable.  

It would be nice for a change if public officials would do a little homework, visit refineries, talk with economists and use a little judgment before "calling for an investigation".  

This is typical behavior, however, of some.  That hostility toward anyone connected with the state's largest benefactor-investors does nothing to encourage more investment in oil, or gas, pipelines, or LNG export projects.  

In fact, hostility by elected leaders injects more uncertainty into Alaska as an investment destination.  

Let's think twice before making the statement ring truer and truer, that "Alaska is sometimes its own worst enemy."    -dh

Yeaaaa for the Calgary Herald Editorial Board!  dh

It would be tempting to crack a smile at Environment Minister Shannon Phillips’ speech to a Calgary oil and gas summit if the remarks weren’t so sad.

The NDP minister told the crowd that the government’s controversial climate change plan is essential, but — wait — she hopes it won’t be permanent. People have heard this sort of thing before. One can only imagine the naivete of Canadians who were assured that the imposition of income tax in 1917, to fund the First World War effort, was also only a temporary measure.

Phillips underestimates the intelligence of Albertans if she thinks (more….)

CBC.  Natural Resources Minister Jim Carr of Manitoba acknowledges there's considerable urgency to building new Canadian pipeline capacity to tidewater, even as new roadblocks continue to appear.

A B.C. Supreme Court ruling this week and discouraging signals from B.C.'s provincial government have further undermined the prospects of two proposed oil pipelines to the Pacific coast, just as Carr is taking part in intense briefings on his new portfolio in Justin Trudeau's Liberal government.

Carr's mandate includes expanding Canada's market access for oil and gas — a highly polarizing public policy debate — and his challenge comes amid a global oil glut that is cratering international prices and killing investment in Alberta's oilpatch.

The natural resources minister is also charged with re-tooling the National Energy Board (more….)