Alaska's Economic Focus: TAPS and Spend
We have pointed out that the single economic focus of Alaskans and all Americans interested in energy security should be the improved throughput of the Trans Alaska Pipeline System (TAPS).
America's energy lifeline once transported over 2 million barrels of crude oil/day to the Lower 48, 20% of America's domestic supply. Alaska was the largest oil producing state. Thirty years later TAPS is 2/3 empty and depleting at a 6% annual rate. Alaska first lost its production record to Texas and this year North Dakota began producing more oil than the 49th State.
Alaska's economy is over a third dependent on TAPS activity and the state operating budget counts on it for 90% of its revenue. Elected leaders have done virtually nothing to curb a voracious and addictive spending habit that requires more and more natural resource revenue. Indeed, Alaska is in a precarious economic situation, just a step away from financial disaster.
New life for TAPS requires read more...
Posted: August 15, 2012