ALASKA AGENDA

Scott Heyworth
Anchorage, AK
Jan. 3, 2004

Opinion

Natural resources remain the key to Alaska's continued prosperity

For the first four days of 2004, we offer an overview of key issues facing Alaskans. We believe these issues deserve continuing attention this year and beyond; we invite your reflection and comment.

Alaska Natural Gas to Market

For decades, Alaskans have dreamed of a transportation system to deliver North Slope natural gas to market. It is a natural twin to the trans-Alaska oil pipeline and the long-awaited next great bonanza in Alaska energy development.

Because natural gas prices once again have spiked, because the state economy and finances need a nonfederal boost and because voters approved creation of a state authority to tackle the job, hopes are rising for a project long touted as the biggest construction job in history.

Determining whether and how the project can be made feasible is job one for every stakeholder -- from state policy-makers to North Slope producers to construction contractors to potential gas customers. In that effort, determining how to best protect Alaska citizens' legitimate interests is the primary responsibility of state government.

Those interests start with maximizing the value to Alaskans of natural gas owned by the state. They include protecting access to any gas pipeline for use by nonowner firms who one day may produce gas for market. They also include employment, environmental, contracting, technical and right-of-way interests for Alaska and its citizens.

Finally, they include controversial questions such as partial or full state ownership, state incentives for investors and potentially explosive hardball measures to force producers to bring the gas to market. 2004 is the year to focus harder on sound policy on these issues. The issues are both highly complex and ripe for discussion and decision.

IN 2004: State must study the markets and the options.

IN 2004: Alaska is the owner state; policy must protect it.

IN 2004: Gas line debate moves to top of the priority list.