2-24-12. "Never Give In", We Say As The Week Ends!

Comment:  Yesterday Commonwealth North (CWN) released its newest report, "Energy for a Sustainable Alaska: The Rural Conundrum."   The study was chaired by Meera Kohler and Ethan Schutt (NGP Photo.  Other event photos below.) and describes a number of energy production, distribution, fuel transportation, and consumption challenges facing rural Alaska. 

Kohler noted that rural residential power generation is currently subsidized via a 'power cost equalization' program designed to align rural residential with urban residential power costs.  With the cost of diesel (i.e. the source of most rural, electric power generation) so high this CWN report seeks to identify solutions that will make residential and commercial power cost in rural Alaska more 'affordable'.  Solutions generally involve new infrastructure, new technology and new financing that minimizes impact on rural residents.  

While the costly solutions involve little ratepayer support for infrastructure and projects, aid will be expected from various levels of government and perhaps the private sector, including Alaska Native Regional Corporations, as co-chairman Schutt noted in response to a question.  We suspect that this issue will evolve into a major 'funding' issue with the Alaska State Legislature even as the community of Fairbanks seeks 'funding' for a natural gas distribution and pipeline transmission system as its own response to high diesel prices.

We conclude that Alaskans would do well to keep their economic and political eyes on the ball: reversing the declining Trans-Alaska Pipeline System (TAPS)  throughput.  If the decline is not reversed and the pipeline shuts down the massive exodus of Alaska's citizens will make other issues seem rather academic, in retrospect.  

If readers agree that TAPS is where Alaska's priority attention belongs these days, then one might conclude that: 1) Alaska should immediately improve the investment climate in a way that attracts more production on state lands; and, 2) Alaskans should never, never give up in their opposition to Obama Administration efforts to stop Alaska resource development on federal and state lands (See stories below); and, 3) we should reduce -- not increase -- public spending until TAPS throughput guarantees the state's long term economy is sustainable.

-dh

Alaska Dispatch by Alex DeMarban.  The Noble Discoverer ship, contracted by Shell to drill up to three exploratory wells this summer, was leaving Auckland, New Zealand, bound for Chukchi Sea waters off Alaska, according to the release.  "I'm blocking Shell's Arctic drill ship because I believe passionately that renewable energy is the way of the future," Lucy said from the ship, according to the release.  Shell spokeswoman Kelly op de Weegh said the company respects freedom of speech, but isn't pleased with Greenpeace's tactics. The company is in contact with local authorities to keep the ship on path toward Alaska, she said.  (Comment: Enviro Extremists show their colors time and time again: disrupt the rule of law; interfere with the permitting process; stop civilization in its tracks; create newsworthy diversions that support fundraising activity.    Governments bend over backwards to support illegal 'occupiers' as if they were simply exercising the right to speak freely; when are elected officials going to wake up and provide LAW ABIDERS with equal protection under the law?   Meanwhile, other enviro-allies fight the legal battle to stop Alaska OCS in its tracks.  -dh)

Los Angeles Times/ADN by Kim Murphy.   Responding to urgings from U.S. environmentalists, Ohio-based Chiquita Brands International Inc. announced in November that it would join a growing number of companies trying to avoid fuel derived from Canada's tar sands, whose production is blamed for accelerating climate change and leveling boreal forests.  Then in January, President Barack Obama abruptly vetoed a permit for the Keystone XL pipeline, Canada's $7 billion project to deliver oil across the U.S. Midwest to the Texas Gulf Coast, which environmentalists have long opposed.

Obama goes on offensive as gas prices soar - Calgary Herald - White House hopefuls Mitt Romney, Rick Santorum and Newt Gingrich point to Obama's opposition to both offshore drilling and the construction of a pipeline from Alberta, and oil company tax breaks, as contributing to higher gas prices.