In 2008, the price of oil hit $140 a barrel, double what it had been just a year before. The impact was felt throughout the country, and especially in Alaska, where we rely on oil in so many ways. The state budgeted $300 million to help Alaskans make their homes more energy efficient. Across the state, many residents started retrofitting their homes and burning more wood to save money.
Members of the State of Alaska’s Legislature Resource Committee got the bad news August 24 when their energy consultant reported, “The Alaska LNG Project, in its current form, is one of the least competitive natural gas fields vying for large multi-year contracts with Asian cities.” The options appear to be to put more cash into LNG, through more State ownership, or bring the cost of investment down.