EnergyFactor By ExxonMobil | Pespectives has a new home

Obama administration vs. Alaska?

Apparently we’re not the only ones scratching our heads at some of the seeming inconsistencies in the Obama administration’s recent announcement that it would restrict energy development in Alaska while seeking to open parts of the Atlantic coast.

Alaska_Feature_01-2015Respected Brookings Institution scholars Charles Ebinger and Heather Greenley did a deep dive into the topic last week in the form of an open letter to President Obama.

It is well worth reading.

Among the many valuable points the Brookings letter makes, one regarding the proposals’ effect on the state of Alaska stands out.

Ebinger and Greenley write:

While your administration may see the closing of Alaska and the opening of the East Coast to oil and gas drilling as giving each side a bit of what they want, you fail to see that these are not juggling the interests of two constituencies. Rather, these are localized issues with high stakes, especially for the people of Alaska who often do not have the diverse employment opportunities found along the East Coast.

In Alaska, the economic vitality of the state is deeply tied to resource extraction. The royalties and taxes from those industries fund the state’s public education and health care systems, while also providing Alaskans with jobs as ship captains, oil field workers, fishery workers, etc.

Further, your actions on ANWAR and the Coastal Plain are seen as likely to end any hope of revitalizing the TAPS flow rate and the resulting enhanced revenues generated through new sources of production.

TAPS is the Trans-Alaska Pipeline, and a recent Wall Street Journal editorial on the topic further explains why the administration’s proposal could do a lot of economic harm.

In short, the president’s new policy will carry serious ramifications for Alaska – where 88 percent of the state government’s budget comes from oil and natural gas revenue – as well as long-term consequences for the nation.

So, why should the president, or anybody else for that matter, be concerned about what is outlined in the Brookings letter?

Because its lead author, Charles Ebinger, knows what he’s talking about.

He’s been the driving force of the Brookings Institution’s Energy Security and Climate Initiative for years. And he has worked closely with Democrats and Republicans to ensure energy is safely and responsibly expanded for our nation’s economy and future.

When someone with Ebinger’s credentials seriously questions a new policy, it is important for the public and policymakers to look again more closely.

With this open letter, let’s hope that happens – and that the president reconsiders the course of action he has taken.

 

 


  • Worth a deeper look...