Alaska’s Energy Plan

While it is critical that we continue to advance the use and development of renewable energy sources here in Alaska, (wind, solar, geothermal, hydro, hydrokinetic), it is also important that we turn our vast nonrenewable resources into a renewable financial resource, endowment dollars. While in Norway Bill learned first-hand how Norway is nearly 100% on renewable energy which was financed in part by their wise development and export of their nonrenewable resources.

Immediate, short-term planning

Imagine an Alaska where the cost of fuel for our vehicles, homes and businesses is no more than $2.00/gallon

It is well known that while Alaska is the most energy rich state in the nation, we also have the highest cost of energy in the nation.

It is also well known that all growing economies in the world have one thing in common, low-cost energy, while all struggling economies have one thing in common, high cost of energy.

It is clear, low-cost energy is pivotal in growing and maintaining a healthy economy.

It is also well publicized that Alaska’s economy is presently ranked 49th in the nation, having the second worst economy post covid recovery.

Now is the time to make bold changes in Alaska’s high cost of energy.

Alaska takes a portion of our share of oil in kind and puts it out to bid to our 3 refineries here in Alaska. We sell it to our refineries at a price indexed to the world price of oil.

It is time we change that model and make our royalty oil available to our 3 Alaska refineries at a price that results in gasoline/diesel at no more than $2 gallon. 

One of the largest consumers of fuel in Alaska is the State of Alaska, through state buildings, schools, ferries, trucks, heavy equipment, etc. The list goes on.

Alaska’s economic model has been the shipping of our resources extracted out of state as raw materials and processed/refined elsewhere. This model is called a colony. This is largely because of our high cost of energy. Alaska’s constitution says we are to develop our resources to the maximum benefit of Alaskans. To me that means processed/ refined right here in Alaska, with our low-cost energy

Imagine an Alaska with the high paying jobs that would be created if all oil and mining resources were refined and processed right here in Alaska and shipped out as a finished product. It is our obligation to wring every possible Alaskan job from our resources. That’s called an economy.

Midterm, long-term planning

Natural Gas:

It’s time to monetize our vast amounts of stranded reserves of conventional (not fracked) gas that comes out with the oil every day and is re-injected back into the ground. It is the largest reservoir of stranded conventional gas in North America if not the world. If Alaska received $1/mcf (energy unit) for our share of it, that equates to $50 billion. How do we monetize it? Whichever way is quickest and brings the maximum benefit and value to Alaskans.  Perhaps it is shipped directly off the North Slope. Perhaps it is through a new gasline to Nikiski using the route that already has 79 federal permits. Perhaps it is by using the existing TAPS oil pipeline in some way that is currently flowing at 25% of its capacity. Our ticket has no particular bias as to which method is used, perhaps a portion of them all, but let’s get this resource monetized and to Alaskans and the world market while it still has value!

ANWR:

As governor, Bill was honored to testify before the Senate Energy Committee in 2017 in support of opening the small slice of ANWR to resource development.

As governor, Bill would sit down with President Biden and present the Ted Stevens/Don Young Education/Transportation (AMHS) Endowment, funded from every dollar from the responsible development of our small slice of ANWR which would spin off earnings to fund the Alaska Marine Highway and Alaska’s K-12 education budget.

While Bill completely disagrees with President Biden’s steps to inhibit Alaska’s resource development, he would meet with Biden, as often as possible. President Obama was not a supporter of off shore drilling in Alaska. However, after Bill’s flight to Alaska with him, upon landing here in Alaska, he mentioned his support for offshore drilling here.

He said his reasons were that we do it better/safer here in Alaska and we should use our own U S energy   resources first during our transition to renewable, rather than from another country.  Given President Biden’s long relationship with the late Senator Ted Steven and Congressman Don Young, we are optimistic with the Ted Stevens/Don Young Education/ Transportation Endowment plan would be successful.