Why Shouldn't The State Take Control of Oil & Gas and Other Natural Resources?

U.S. News & World Report: Alaska's Oil Taxes

Alaska Governor, Bill Walker, Means of production, oil and gas, alaska lng, Photo by Dave HarbourWe're not saying Alaskan politicians are beginning to control everything.  However, controlling oil and gas is a big step toward socialism and controlling a gas export project (and a municipal distribution project) are decisive first steps in that direction.  Alaska became great because of a free market, not because of dictator-governors who wanted to, "fundamentally change Alaska's freedoms".   dh     (Photo: Alaska Governor Bill Walker)


Today's Commentary:  "This is big"

David Gottstein, ACES, Alaska oil taxes, AKLNGas, Alaska LNG, Photo by Dave HarbourBelow is part of an email blast from a Matanuska Valley business woman named Beth Fread.  She has arranged for one of Alaska's most effective, liberal activists, David Gottstein (NGP Photo) to make a presentation on his ideas for forwarding the marketing of Alaska North Slope Natural Gas. 

We encourage readers to attend the Friday meeting.  

Why?  Because we believe Gottstein has long been involved in oil and gas taxation issues and that his ideas are not inconsistent with the direction Governor Bill Walker is taking toward controlling the means, transport and distribution of natural resource production in Alaska, beginning with natural gas.

Understanding Gottstein's position, therefore, will enable listeners to more carefully define their own reasonable reactions to it.

Knowledge is power.

Here are links to two documents that Ms. Freid mentions in her meeting invitation: ​

Below is information on Ms. Freid's meeting:

"Mr. David Gottstein has a different opinion and an alternate set of research criteria for the LNG pipeline than has been put forth in the other news sources I am using.  He has offered to come out here this Friday for a presentation of this information.  Some of it is based on the attached documents.  Please be warned, this perspective may rock your boat!

"The presentation will be made in the back room at Mat-Su Family Restaurant.  No-Host dinner at 6:00 pm, meeting at 6:30 pm.

Looking forward to seeing you there …

bethf 😉

Beth Fread

907.354.7759

Beth@BethsValleyViews.com"

Our Opinion: "How the Ak-LNG project and Alaska's fiscal crisis are related"

As we direct readers' eyes to the right column commentary, we restate our opinion: Spending a moderate amount of public official time and public debate on supporting private sector efforts to monetize Alaska gas is prudent.  

Spending inordinate amounts of time, as Alaska's governor is, attempting to control resource development in Alaska is a fool's errand to deliver the state into socialism and chaos.  

Exacerbating the foolishness of current "I want government to control the gas pipeline since, 'IT'S OUR GAS'", is the continuous negative meddling of the governor causing project delay.  

Since any LNG export project cannot provide significant economic support to the state before 2025, the state's deficit spending culture will be defunct before a gas project can even partially resuscitate it.  Although, we note, the state probably can deficit spend long enough to complete the current governor's term and the pension sensitive terms of all current Legislators. 

The citizens most adversely affected by current "government should own and control the gas pipeline," are rural residents, mostly Alaska Natives, who will find it harder to 'go South' as the economy heads South.  

Also, everyone knows that rural residents' somewhat idyllic "subsistence lifestyles" are heavily subsidized by government provided checks, food stamps, health care (including air transport to Anchorage Native health facilities), roads, airports, education, ports and fuel subsidies.  

Those beneficiaries could likely learn the hard way that poor financial policy decisions being concocted in Juneau today — particularly the many poor decisions affecting the petroleum wealth feeding Alaska's economy — will hurt rural residents more than those in the state's largest cities.  

And this relates to Alaska's fiscal crisis.

Some politicians seem to be trying to mesmerize citizens with shiny objects like 'controlling' 10-year-away, distant gas pipelines.  When citizens are distracted by a far away project, it is easier for them to ignore such critical, here-and-now issues as solving Alaska's huge fiscal crisis.

Alaska's fiscal crisis can only be solved by creating a 'sustainable economy'.  A sustainable economy in a remote, climate and geographically-challenged state like Alaska, can only be achieved by constantly supporting oil and gas, mining, commercial fishing, timber and other natural resource, wealth producing industries…and, by controlling public spending.

To solve the fiscal crisis: the best things Alaska's rural and urban residents can do for themselves and their families RIGHT NOW — but perhaps not the best thing for politicians — is to:

  • Dramatically cut government spending, especially the doubling of costs added in the last decade, and
  • U.S. News by Pete Sepp.  Punitive taxes on the oil industry will not fix Alaska's budget problems, but will hurt its economy….

    not taxing the wealth producing natural resource industries — including oil — any more than they are paying now, and

  • supporting, not interfering, with efforts of private industry to invest in oil and gas (i.e. especially gas pipeline) and mining and fishing and timber activities in the state, and
  • not demonizing the very natural resource industries that the constitution and statehood act depended on to sustain Alaska's economy, and
  • only considering additional, job killing taxes and fees when the above actions have been taken.

-dh