All I Wanted For Christmas.... All I Want For This New Year....

On December 24, 2001 we wrote an editorial satirizing the human greed and mismanagement that was interfering with gas pipeline project advancement.

In those days, Alaskan leaders and their supporters were engaged in the beginning of a decade-long fest of spending gluttony and tax increases to support self gratification of one generation at the expense of those to follow.  
 
Leaders professed that because of the natural resource blessings graced on the state, those resources had almost mystical value on the world market, unaffected by a growing burden of local tax and regulatory policy.  They refused to accept the reality that the entire state bureaucratic superstructure and private economy was balanced on the unique properties of America's most prolific reservoir: Prudhoe Bay.  By not appreciating the rareness of Prudhoe, they structured all of their spending, taxation and regulatory policies on the sustainability of that one reservoir. Investors interested in other areas would still, for the most part, have to bear the 'Prudhoe burden' were they to decide to explore for and develop less prolific areas.  
 
Part of the rationale politicians used for ‘spending and regulating like drunk sailors’ (apologies to the latter), was Article 8, Section 2 of Alaska’s Constitution, ordering that, “The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.” If elected leaders had defined “its people” to include their children, grandchildren and future generations, they might have considered policies designed to develop sustainable investments and jobs to support Alaska’s government and economy for the long term. Instead, when politicians wanted to spend more, tax more or regulate more, they would typically say, “We’re supposed to develop Alaska’s resources for the maximum benefit of the people and, damn it, that’s just what we’re going to do.” 
 
As the new century found producers initiating a $100 million+ gas pipeline feasibility study, Alaskan leaders were alternatively joining and leading a populist chorus demonizing industry investors and praising government manipulation of the private sector, namely: outlawing the highly feasible northern route, increasing general spending, funding theoretical, government gas pipeline projects, passing out free checks to breathing citizens and increasing the income levels for receipt of a rich and growing array of welfare benefits. 
 
Amazingly, they were doing these things with full knowledge that rapidly decreasing production would be producing a deficit for the next generation.
 
During the same period, Canadian constituencies have also been addressing the feasibility of a Mackenzie Valley gas pipeline, also in response to the natural gas price increases occurring at the turn of the Century. 
 
Due largely to state government interference in Alaska, environmental/Aboriginal interference in Canada, and prolific gas shale and LNG project development, both of the Arctic projects are floundering. Ironically, both projects are stumbling as federal revenue on both sides of the border is down and spending is up.
 
So, all I really want for this coming New Year—speaking again from a worldly and not spiritual perspective—is for Alaskan and Canadian citizens to tell their political leaders to repel the special interest fighting and greed and support the projects.
 
If citizens are unable to cooperate in an effort to free the Arctic’s stranded gas reserves, the market and history will properly recall their incompetence and failure. The good news is that the gas reserves will be there for a more competent generation to develop, one that will deserve through its own labors the wealth graced on these remote lands. 
 
The even better news is that a new project could someday rise from the ashes of the old ones. That project could be an efficient, feasible Arctic gas transmission system providing the highest netback to Alaskan and Canadian royalty owners and minimal, negative impact. It could compete with a world awash in LNG and shale gas. This project would require less carbon production to create and less cost to operate. It would be a refrigerated line buried in the permafrost, transporting every molecule of gas for the lowest possible price. 
 
It would be an Arctic gas system, with huge economies of scale, moving Alaska North Slope and Canadian Mackenzie Delta gas via the same conduit, to grateful markets below.
 
Since the more unselfish of us believe that Article 8 refers to this and future generations of citizens, it would be only just if those seeking to have it all for themselves today, were sentenced to receive none.

I believe that my Dad’s wise counsel on one Christmas 50 years ago applies in this situation, “For the faithful, Son, everything will work out just fine.”

-dh