If the state of Alaska is going to participate in the construction of an in-state gasline we must ask ourselves WHY.
What are we trying to accomplish?
The goal of Energy to All Alaska is to reduce the cost and increase the availability of energy to all Alaska. We believe that the distribution of natural gas throughout the state will be the impetus needed transforms the state’s economy into one that promotes economic growth and Alaskan jobs. We also believe that the reduction and stabilization of energy costs is the only way to diversify Alaska’s economy beyond Federal spending and oil dependence.
Affordable energy will also lead to an increase aggregate output through the induced spending on energy needs and investment as a result of the increase in disposable income.
Who will benefit?
The Alaska Energy Distribution System can provide relative access to Alaska’s energy resource to all regions within the state. The future of Alaska and Alaskans depends on our ability to diversify and sustain our economy. By making available lower cost energy we will promote the development of industries and jobs in rural and urban Alaska.
Will it change Alaska’s economic future?
We believe, Yes, lower costs of energy we will attract value added industries and diversify the economy. This diversification will eliminate our dependency federal spending and the petroleum industry which provides the majority of the states funding and a significant amount of jobs in a wide range of industries.
Tradeoffs, what needs to be offered to those not positively impacted?
Due to the public good nature of this idea, it is necessary that all individuals have comparative, equal access. The best way to offset costs to those who are now, receiving no energy benefits, is to create energy hubs that all have the same cost of energy.
How does the project impact rail belt communities?
The project would provide the rail-belt communities with stable lower cost energy, thus promoting the development of new industries and the expansion of existing ones. The supply centers on the rail-belt would also benefit for the increased economic activity in rural Alaska.
How does the project impact non-rail belt communities?
Non-rail belt communities would also see industry expansion particularly in areas that facilitate resource extraction industries and value added industries for those extracted resources. This would mean increases in jobs, increased wages and would help to maintain the existence of rural Alaska and native culture ( which has a high existence value in my opinion). The increased economic activity in rural Alaska would also allow for other consumption goods and services to be transported to rural locations at less cost.
Reasons for Fairbanks:
Gas market will grow in terms of quantity demanded by the public and new industries
Strategic location for distribution in the rural communities in the state
Allows for the development of a gas to liquids facility which supports the militaries mission and gives Fairbanks the opportunity to export liquid fuels throughout the state.
We have the highest energy costs in the state (urban energy costs), so the pipeline gives us a lot of bang for the buck.
We have a legitimate need for the gas to alleviate our pm 2.5 issues.
Fairbanks should be an energy distribution hub.