Gas Pipeline

I think Alaska should stop waiting for the oil companies to agree to build a gas pipeline and we should just do it ourselves. That probably cannot be done through Canada, so the state should build a pipeline to Anchorage or Valdez and send its natural gas to Asia or California. Canada and Australia are going to export gas to Asia and we should too. As a result, we wouldn’t have to wait around for Canada to get its act together on Native land claims and permitting issues.

Many people think the government cannot possibly build a multi-billion dollar pipeline. However, to me a pipeline is not much different than a road, railroad of aquifer, and providing transportation infrastructure is in keeping with traditional governmental functions. The state would hire the same pipeline contractors to build it that the oil companies would, the difference would just be the timing. Governor Egan wanted the state to build the oil pipeline, and the state would have made a lot more money and the North Slope would be more competitive if we had.

The main issue really is not who builds the pipeline, which is just an expensive road, it is how to get the gas commitments necessary to finance the construction. It is clear BP, Conoco, and Exxon are refusing to commit gas to any pipeline until we agree to alter our taxes on both oil and gas. I think if the current leaseholders continue to refuse to sell our gas from state owned lands we should do like any royalty owner in Texas would do if a producer refused to market, we should take our leases back and give them to oil companies that want to develop our resources. It’s simply ridiculous that Alaskans have to pay some of the world’s highest oil prices because a few oil companies on the North Slope are holding up a pipeline to extract a better deal on taxes from the state.

Alyson South