Opposing Palin on gasline is a mistake
ga=lesgara |
Mar 17, 2009
There's a disturbing thing going on in Alaska politics, and it threatens to kill our chances to build an Alaska gas pipeline. Any casual observer of Alaska politics has seen that Gov. Palin's created a growing list of detractors across the political spectrum. A growing number of people are starting to take the opposite position from the governor on nearly everything. If she's for it, they're against it. Alaska's politics now float in treacherous waters. Some of Gov. Palin's detractors see things the way the major oil companies see them. They've willingly joined the oil company cause to stop the TransCanada pipeline - Alaska's best chance at a gas pipeline project - in its tracks. Others have joined their cause unwittingly. There are growing numbers of Republicans and Democrats who are predisposed to agree with anyone on the other side of the governor. Gov. Palin's become a lightning rod, and many Alaskans have chosen to be "with her" or "against her"Â - all the time, no matter what. That's unhealthy. If we keep playing this sport, we won't have a gas line at all. Or we'll get one built only on Exxon, Conoco and British Petroleum's very unfavorable terms. I can't play this game. The stakes are too high. When I disagree with the governor, I'll say so. But when I see a chance for common ground, and a path to the most important development project on Alaska's horizon, I'll work to find it. Some of my supporters are rigging up the guillotine right now. The truth is the governor and I have some great disagreements, and some substantial areas of common ground. In both cases, I've said so. No one's ever accused me of being shy about my opinions. Finding common ground may not be exciting politics. But I have an obligation to get things done when I can, and to call things honestly instead of politically. Throwing bombs for the sake of it doesn't lead to a very long or happy career. So, those who oppose "Everything Sarah" are making a mistake on the gasline. For decades Alaskans have been right to join in a common goal to build a atural gas pipeline. We need it for local energy. And we need it because as oil production declines, we'll need a job and tax base. Without oil or natural gas revenue every Alaskan worker would have to pony up roughly $15,000 in sales or income tax payments, maybe their PFD, and then property taxes on top of that. That's a recipe for pain, bad roads, bad schools, and no progress on our greatest problems. So, why is the TransCanada license we agreed to sign so important? 1. The major oil companies likely oppose a gasline. Why isn't clear, and until we get access to their Board minutes, we won't know for sure. There is evidence that Exxon, Conoco and British Petroleum may want to delay a project because sending Alaska gas to the Lower 48 will reduce the price they get for the natural gas there. Or they may not want a gasline until later because that's what fits their business plans. They may want to keep using their natural gas as long as possible to pressurize oil out of their North Slope oil fields, even if delay kills a gasline project forever. 2. The TransCanada project places pressure on the oil companies to move forward. Remember what we had before TransCanada? The Frank Murkowski proposal with Conoco, Exxon and BP? The one that would have, by contract, prohibited us from fixing the flawed oil tax law he signed, and that's put the FBI on overtime? Â The one that included billions of dollars in tax concessions, and great financial risk for the state? That's closer to what you'd get if you only negotiated with the oil companies to build a gasline. Where do the oil companies get their leverage? Well, they hold the leases to the major known reserves of natural gas on the North Slope. If they know we are relying on them to build a gasline, they can withhold their cooperation until they get the tax breaks they want, and the terms they want. If they're the only game in town, they won't build a gasline until we say "Uncle." The terms they demand won't be in our favor. |












