Fuel price review
Published Wednesday, June 25, 2008
Digg
delicious
Facebook
Mixx
Reddit
Stumble It!To the editor:
In 1986, when average world oil prices dropped to $14.44 per barrel from twice that of only two years before, the Fairbanks economy was on the rocks. Housing prices were plummeting. Many were for sale. Unemployment rose. Residents were talking about leaving for lack of work.
They were wondering how they would make it through the coming winter. It was depressing.
In 2008, the average world oil prices rose to $140 per barrel from half that of only two years before. The Fairbanks economy is on the rocks. Housing prices are plummeting. Many are for sale. Unemployment is rising. Residents are talking about leaving for lack of work. They are wondering how they would make it through the coming winter. It is depressing.
To the contrary, Alaskans should be feeling rich this time. We should cheer when oil prices rise. Alaskans should receive a fair share.
So far this year, the oil pipeline has averaged 731,708 barrels per day. For each of those barrels our state is taking about $80 in royalties and taxes. Last year, 604,149 Alaskans received a Permanent Fund dividend.
If you do the math, you’ll see that our state receives nearly $100 a day for each Alaskan’s oil. That’s about $36,000 per year. Our leaders can do better than the $1,200 Sara proposed.
Would giving Alaskans 10 cents on the dollar for our oil be too much to ask? That is $3,600.
Even that doesn’t seem like my fair share. Nor would it make me feel as rich as I should. Let us use the rest to solve our longer-term energy needs, forever.
First, by finishing ASAP, the Healy Clean Coal Plant that our state and federal governments have already spent nearly $300 million on.
Second, our oil and gas is too valuable to burn in Alaska. We should sell it and build the Susitna Dam.
We could then heat our homes cheaply, cleanly with renewable electricity for pennies a kilowatt-hour, forever. Our State has already invested $150 million on it.
Let’s finish these two great projects before we start new ones.
Steve Estes
Fairbanks
Community Discussion
Newsminer.com doesn't necessarily condone the comments here, nor does it review every post. Read our full user's agreement.
I'd love to see the Susitna Dam built, but it won't be as long as Usibelli and the oil companies are doing good business. Too bad.
true
The Susitna Dam would be a massive waste of money. The idea of damming a glacial melt water river laden with silt and expecting the dam to function for very long is a pipe dream. The dam would fill up in no time.
Just like most of the Money pits that our state pays for it's all just eyewash, too make it look like they care. No ones feet is held to the fire to actually come through for us. GVEA just continues to hose us all with outrageous electric bill, thought electricity was supposed to be Cheap. Maybe for the rest of the lower 48. Not here
Hydro power, coal power, heating with oil, gas, in our present situation does it really matter??!
What matters is that the Juneau and local politicians pull their heads out of their back pockets and stop proposing and pointing fingers at the opposite parties, and do what the heck they are in the office to do. Represent us as they were voted in to do!
In my opinion, trust and follow our governor as she is the only one that is seeminly for her Alaskans and not getting thick pockets or jets or new homes via oil companies.
I could not agree more. The people of Alaska are struggling while our so called leaders in Juneau have so much money they can't spend it fast enough. Maybe we should start issuing shares in Alaska each year and run our State like a corporation. All of us are millionaires from our share of natural gas alone.
The state income was 13 billion last year all except 2 billion is committed due to the budget process. The ten percent return would be nice, but it is not a realistic method of determining the windfall rebate. The windfall needs to only be paid out after all the bills are paid. The first 25% of annual state income goes to the PFD.
Instead of spending 75% on capital and government spending, we should put the next 25% into running the state government in the form of a government permanent fund, 25% toward education ditto on the fund, and the remaining 10-25% should go toward capital projects to improve infrastructure, and whatever is left over should be returned to the people via increasing the PFD or a direct tax rebate.
Here's a thought to alleviate a federal income tax for the rebate: The state can lable the checks as a tax refund since the royalties on the oil are taxed by the state at 100%. If the state is paying a federal tax on the oil, we should not have to pay a second tax in the form of federal individual income taxes.
Hard to understand,, Alaska has less than 1M people, the states income is over 13 BILLION our share is ?? how much?? WOW my math must be way off.... we must be driving on roads paved with gold and have all the milk and honey we can eat, live is great in this rich state,, dont wake me up...
milk and honey? i'm thinking cristal and filet mignon. :)
Vitrox, I'd have to vote parmigiano reggiano, a loaf of craft-baked rustic bread, olive oil, a good red wine & some extravagant chocolate. Though, the filet would be nice.
=)
Yeah by the time they do give us the 1200 hundred if they even do that should by what a little hundred gallons of fuel they should double it or triple in my opinion after all it is ours the people of alaska. As far as finding cheaper fuel sources wake up people gvea big oil and the state dont want that they are raping us so bad and lovin it why in their right mind would they give us cheap fuel of any kind. Hell gas went up 12 cents overnite. My paycheck didnt did my electric go down thats a dream. I heard a good quote on Leno a few weeks ago about how the government was taking more control over the oil and how in america oil was taking more control of government.
Good Letter.
Pat
Everybody who owns Susitna river property should build one of these things instead of building one big dam.
http://peswiki.com/index.php/Directory:Z...
...then you line these with astroturf and nomad to catch the gold in your circular sluicebox.
....flash/rumble
DistantThunder,
I wonder how well these small power plants stand up to high silt loads. I know from experience that standard water pumps in boat motors quickly wear out when used heavily on the large silt-laden rivers of the interior.
Steve,
Great letter! I hope Sara Palin reads it. I agree with you on the 10 cents on the dollar. However, I won't hold my breath and I will tell myself how lucky I am to receive the $1200 she has agreed to send.
God Bless America, God Bless Our Troops and God Bless the Sound of Freedom!
the u-hauls will be heading north, free money in alaska.
Post a comment
Commenting requires registration.