Alaska Gas| The ADN editorial is wrong.

From the Anchorage Daily News editorial page, July 31, 2011:

Our View:  Initiative Required … Dan Fauske, head of the Alaska Gasline Development Corporation, and Bill Walker, general counsel to the Alaska Gasline Port Authority, provided reports on two very different megaprojects this month. … Both argue for state ownership of a pipeline to tap Alaska’s treasure of North Slope gas. Both require Alaskans’ initiative to secure our own energy and wider economic future. … Lawmakers and the governor need to vet both of these proposals, and if either makes sense, put the wherewithal of the state behind it — and we don’t mean with another round of studies. Alaska has the resources to take care of its own energy needs and gain by world demand. We need to get them out of the ground.

The ADN is wrong. The next step should be an Open Season by both projects. Prove that there is market demand before committing significant state funds. Consistent with recent ISER studies, Alaska needs to ensure that any use of state money produces returns at least as strong as those earned by the Permanent Fund. Sinking state money into projects without demonstrated market support undermines future Alaskans.

Comments are closed.