Letter to the Editor
Refinery failure
Published Sunday, July 20, 2008
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To the editor:
Does anyone remember when Flint Hills — wholly owned by David & Charles Koch — came to town, promising “100 to 200 million in upgrades” to the refinery?
Promises, promises.
So even though we are an oil-rich state with our own refinery, this failure to embrace the future now means we must import jacked-up Outside fuel and as ever more low sulfur laws kick in, we get farther behind the eight-ball.
Then gas will rise like diesel already has — just in case you thought it was underpriced.
Never mind that when Flint Hills was raking in the money, the Kochs (pronounced “Coke”) earned enough to go on a buying spree that made them the largest privately held company in the U.S.
Now a “deep enduring commitment to local philanthropy” has come to a screeching halt and Flint Hills is crying to the State of Alaska for a break, opening its books to prove an arch advocate of free markets deserves more special government treatment.
To top it all off — something you only dream about doing at the fuel pump — check the July 10 issue of the New York Times. David Koch, 50 percent owner of the North Pole refinery, is donating $100 million to have the Lincoln Arts Center named after his $17 billion self.
Clearly it has been decided that us peasants should shiver this winter and drive on “E” so our wealth can hemorrhage south to worthier causes.
I say if you can’t join them, beat them: Burn wood, build an electric car — anything to stop money going to the Koch kingpins.
Their literature states that one’s word is one’s bond, so with the refinery for sale they should sell to Alaska for market value, less the money they promised but never invested.
Like the movie “Trading Places,” only when they lose a lot of money will these billionaire brothers understand the pain their machinations inflict.
Community Discussion
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It's cheaper and easier than you think.
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mini refinery
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Why don't the boys just give the refinery to the people of Alaska; if
they want some good press. That would make some headlines!!!
I still think we should take the purchase price out of the Permanent Fund. We could use royalty oil as feedstock for the plant, provide sufficient cheap energy for the state, and sell the rest of the products produced by the refinery at a profit and pay back the Permanent Fund.
Do you really think the few gallons of fuel we use here will make a dent in the business of the refinery? Have you seen the trainloads of jet fuel heading south day after day? If they are not making money at Flint Hills it's because they sell jet fuel on long term contracts. The price of feed stock raises faster than the value of the contract fuels.
You might be interested in checking out Jack Hodnick's proposal at http://allaskanrefinery.blogspot.com/
two thieves, owners are convicted fellons. their word is worth NOTHING!
What fuel is being shipped in from "Outside"? It is pretty easy to throw something like that out. Now is time to back that statement up. Take a little time to think before you start coming up with these "grand" ideas. If it was that easy to run a large corporation, everyone would be doing it.
Sorry...correction to the URL posted above. It should be http://allalaskanrefinery.blogspot.com
Build a nuclear power plant in Juneau and finally give us all power we need statewide!
Anchreader should check out the story from KTVA and he would know that Alaska is a net importer of gasoline and diesel.
http://www.ktva.com/search/ci_5260192
One out of three barrels that end up in your car or truck is imported from Indonesia or South America.
Lakloey1 is 100% correct. Eighty percent of Flint Hills product is jet fuel that is sold on long term contracts. Unlike us peasants who pay "What the market will bear," the airlines base their prices on the cost of fuel at the SEATAC airport. Looking at the long term graph the jet fuel price in Alaska and Seattle is almost identical while the wholesale price of gasoline is over 50 cents more than in Washington state.
guys - we have to sell all that jet fuel to anchorage - otherwise the Alaska RR would go out of business....
IT would have made more sense to put the refinery in Anchorage - but then the RR would have nothing to ship!
Without Flint Hills the RR would certainly go bankrupt in short order. I believe that the oil train accounts for 80% of the RR's revenue. Without that revenue it would not be economical to maintain the tracks for a couple of tourist tains.
The Tesoro refinery in Nikiski already has to import half their crude from Indonesia because Cook Inlet production is dwindling and the producers have control of Alaska crude until it gets to the west coast. Last time I checked the Trans-Alaska pipeline does not make it to Anchorage and that is why the state's largest refinery is in North Pole. Last time I waited for a train I counted 60 tanker cars headed south and they make 2 trips per day. The entire village of Fairbanks only uses about 2 tankers worth of gas per day.
"Without Flint Hills the RR would certainly go bankrupt in short order. I believe that the oil train accounts for 80% of the RR's revenue. Without that revenue it would not be economical to maintain the tracks for a couple of tourist tains."
Have you forgotten about the coal that comes up from Usibelli to interior power plants? I agree that its a much smaller percentage of total revenue and shipping jet fuel to Anchorage helps keep overall shipping costs down, but to dismiss coal shipments outright, I'm sure, was just an oversight on your part.
Why in the heck doesn't our state of Alaska buy the refinery? We are so wealthy in the state treasure that it can happen, and STILL maintain the dividend. We bought the Alaska Railroad back from the federal government, we can buy the refrinery and watch the prices go down for us and be a positive for all involved and the ones looking on............how about it Governor? This can't be a new suggestion!
Maybe, but the railroad is so expensive hardly anybody can go for a ride on it. I really wish I could take it to Anchorage or some sites between--not Denali.
Affordable rail service to Los Anchorage would be kinda cool; plus we all get to ride "our" trains.
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