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5-21-12 - Intergenerational Inequity, Continued....

ADN Editorial: ... That's what was most frustrating about the state Senate refusing to even hold hearings on House Bill 9, which would have empowered the Alaska Gasline Development Corp. to pursue an in-state "bullet" line with a target of a 2013 open season and given AGDC a seat at the table for discussions on the LNG export project where it could leverage its work and the 417 miles of right of way it possesses.  If Alaska's state senators have an alternative way to get gas to state residents and relieve crippling energy costs, they have yet to present it. They appear content to place the destiny of the state in the hands of others, namely the North Slope producers some legislators so enjoy vilifying.    ...


Comment:  Last week, we linked to our Alaska Business Brad Keithley, Alaska, oil and gas taxes, ACES, BlogMonthly article on Intergenerational Ineqity.  We prepared the draft for submission before reviewing the latest work of the University of Alaska's Institute of Social and Economic Research (ISER).  In the Blog piece, below, Brad Keithley (NGP Photo), identifies from the ISER report a string of logic that demonstrates how current state spending policy is eroding the "nest egg", and threatening the economic future for our kids or, put another way, creating intergenerational inequity.  -dh

Thoughts on Alaska Oil and Gas, by Brad Keithley.  In March, the University of Alaska Anchorage’s highly respected Institute of Social and Economic Research (“ISER”) published a paper entitled “Managing Alaska’s Petroleum Nest Egg for Maximum Sustainable Yield” (.pdf). The paper is the continuation of an effort started last year (.pdf) by ISER’s Scott Goldsmith to determine the appropriate level of annual state government spending, if the objective is generally to maintain a consistent, inflation adjusted level of state spending over time.  ...   "Alaska Fiscal Policy| Like fish, if the current rate of “take” (i.e., state spending) is too high – higher than can be supported by the state’s asset base on a sustained basis – the state’s “nest egg” is eroded and the revenue available for spending in future years is reduced. In short, setting the rate of state spending at higher than sustainable levels will leave future generations of Alaskans worse off than the current generation. ... Sadly, it appears that Alaska’s most recent generation of political leaders has failed to grasp this principle and is leading Alaska off the fiscal cliff." 


THOUGHTFUL THURSDAYS, by Deborah Brollini.  Oil and gas, and pipeline issues are complex and can be intimidating. Alaska Energy Dudes and Divas launched its "Thoughtful Thursdays" series last week to help citizens better understand the issues facing you, your family, and the State of Alaska. Sit down and relax in a fun environment and speak with experts from the oil, gas and energy sectors and have your pressing questions answered. 6/21/12 - Admiral Tom Barrett, President of Alyeska Pipeline Service Company https://www.facebook.com/events/231241090322021/

5-18-12

18 May 2012 6:36am

...in progress.

5-17-12 We Detest Intergenerational Inequity -- So Rampant Nationally and Throughout Alaska

17 May 2012 2:09am

Calgary Herald, by Dina O'Meara.  Enbridge Embarks on $3.2 Billion Expansion of Pipeline System


Bloomberg by Ramsey Al-Rikabi.   Alyeska Pipeline Service Co., operator of the 800-mile Trans-Alaska crude system, will close for work (today), the first of as many as five shutdowns scheduled until Aug. 5.


Intergenerational Inequity

by Dave Harbour

(Read the full article in this month's Alaska Business Monthly: Page 1 and Page 2)

Author's note: Intergenerational inequity is a fancy term for spending money we don't have and letting our kids pay our debt, with interest.  Politicians love this form of theft by a voting generation from the young, unaware non-voting generation.  It is part of the fundamental problem Alaska has as it spends imprudently when elected leaders all know the pipeline is 2/3 empty and on its last legs.  Some will say, "Well, look at all the money we're saving.  No we're not.  We are not paying down the huge public employee retirement deficiency of approximately $15 billion and our bloated, entitlement spending rips ahead as if everything were normal.  Then, there are the $15 trillions of Federal debt.  Parents who do this to their kids should be locked into stocks in Town Square.  But those responsible will instead retire with financial rewards as fewer and fewer employed persons work harder and harder to pay off the indenture placed upon their necks like an ox yoke.  Rise up, children, whether you can vote or not, and begin to tell your parents and elected leaders, "Don't buy your generation services and stuff that I have to pay for!  I am not your indentured servant!  America's founders fought for freedom from 'taxation without representation'.  They won that fight.  Why do you want to make us kids pay the price to win that victory all over again?"  -dh

Maybe our kids, looking forward to no viable economy in Alaska, should confront elected officials and also begin picketing the 'enemy within', NGO's that are doing everything possible to subvert the natural resource development basis of Alaska's constitution.   Then, there's this.  Scroll down for similar news in recent days' reports.  -dh


THREE CHEERS FOR CHAIRMAN DOC HASTINGS!

Yesterday the U.S. House of Representatives passed a mineral production and Indian land energy Doc Hastings, US Congress, Photo by Dave Harbourbill.  “By streamlining government bureaucracies, we can boost American production of critical minerals such as rare earths that China has nearly one hundred percent control over.  These critical minerals are vital for manufacturing everything from cell phones to hybrid vehicles.” said Natural Resources Committee Chairman Doc Hastings (NGP Photo).  “Indian lands are unfortunately home to some of America’s highest unemployment rates, yet they also contain the greatest job creation potential through energy development.  Due to restrictive and cumbersome federal regulations, many tribes have been unable to harness their own energy resources.  The Native American Energy Act allows tribes more control over their land by streamlining government barriers to energy production.”

 
“Every provision of this bill was requested by Indian tribes or Alaska Native Corporation leaders.  The bill is a product of consultation with tribal leaders who U.S. Congressman, Don Young, Photo by Dave Harbourare interested in increasing Native Americans’ control over the energy resources beneath and on their lands,” said Indian and Alaska Native Affairs Chairman Don Young (NGP Photo).  “A number of tribal leaders provided excellent testimony underlining the need to remove federal red-tape that stands between them and timely, efficient production of energy resources that creates jobs for tribal members and nearby communities, revenues for the tribal government, and energy security for all Americans.”
 
 

In the spirit of the House Republicans’ American Energy Initiative effort, the House Natural Resources Committee today passed three bills, with bipartisan support, to expand onshore energy production, lower gasoline prices and create new American jobs.  The bills would reduce burdensome government hurdles and streamline duplicative and unnecessary bureaucratic obstacles to onshore American energy production while encouraging job creation and economic growth.
 

 

 

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