NATURAL GAS/COAL/SHALE/GEOTHERMAL forum: Alaska's Coal/Energy potential
After 13 years online, Cubits.org is scheduled to be shut down. Please make sure you have the contact information for all your friends, and that you download whatever content you want from this site.
Views: 7, Replies: 8 » Jump to the end |
|
|||
Hello Folks, Hello from Alaska! At Aguane's request on another cubit, I am posting the below here for your consideration. It concerns some of the perspectives on Alaska's contribution to the national energy picture. It's a big topic, so this little bits here are just drops of muck into the barrel. Alaska also has some active processes regarding alternative energy: geo-thermal, wind, tidal, hydro-electric and nuclear ... when/if I get some info on those, I'll pass them along ... One of the things that I think is important is to consider how the revenue generated by energy efforts can contribute to the long tern economics of a region, separate from the energy itself: such as, establishing legislatively mandated permanent funds... Now, THAT's a big topic, too ... ! These sites might be interesting to you for your energy cubit: http://www.instituteforenergyresearch.org/state-regs/pdf/Ala... http://www.eia.doe.gov/state/state-energy-profiles.cfm?sid=A... http://www.dog.dnr.alaska.gov/oil/ I don't remember exactly where I heard this, but here's an interesting discussion point on energy. It has been said that the USA is analogous to Saudi Arabia when it comes to coal. We have larger proven coal reserves than any other country ... Alaska has about 30% of the coal in the USA. Most of it in very remote and (currently) inaccessible locations. A considerable amount of coal is mined near the community of Healy, about 110 miles south of Fairbanks and near the Denali National Park, a large part of which is exported to Korea and Japan. Alaska's coal is said to be "clean burning" in that it is lower in pollution byproducts such as sulphur than coal mined elsewhere, but any burning results in carbon dioxide the primary condemnation of coal everywhere. As a result of Alaska's tax on petroleum production and then the setting up of our "Permanent Fund" ... Alaska has a savings account of more than $40 Billion (!), which is invested in a widely diversified international portfolio. The earnings of the fund are reinvested into the fund and a calculated percentage is paid to each Alaskan (every legal resident: man, woman and child) as an annual Dividend. Usually this amount is between $1,000 to $1,500 per year (it has been both higher and lower,) paid in October or November of each year. Alaskans love the Permanent Fund! We have NO income tax and the PF Dividend is tantamount to a reverse tax: the government pays the citizens, not vice versa! The PF cannot be tapped for state government expenses by the legislature without a "supermajority" vote (75%) of the people ... which will likely not happen for a long, long time ... therefore, the PF will likely continue to grow ... At some point, the earnings of the the PF will be capable of funding the entire state government without touching the principle! There are disagreements about the establishment, use and intent of the PF that will likely persist for a long time ... for an overview, you can get an idea from Wiki here: http://en.wikipedia.org/wiki/Alaska_Permanent_Fund "Magpie" Jon Alaska images at the Magpie cubit - go to Alaska Photos and Commentary: http://cubits.org/Magpie/thread/view/42616/ Also Post under "Jon Deisher" on FB, LinkedIn & G+ (If you need an invitation, let me know) |
|
|||
Oh my gosh! What an awesome, well oiled machine! Thanks so much for posting this thread. Looking forward to more news but in the meantime I'm looking into the links you've provided. Susie "There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." --Albert Einstein ~ All Things Plants, SOUTHWEST GARDENING ~Cubits.org ENERGY & POWER |
|
|||
It is my understanding that Alaskans pay a high price for gas and for heat for their homes. So even though they do get a check back, it doesn't cover the extra cost of heating/living there. |
|
|||
I'm not sure Frillylily, Jon will know. But, I think when we look at the cost of anything in Alaska compared to AZ or MO, for instance. I think things look like they cost a lot more in Alaska....folks have higher salaries, too. Just a hunch. "There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." --Albert Einstein ~ All Things Plants, SOUTHWEST GARDENING ~Cubits.org ENERGY & POWER |
|
|||
Like lots of things, what one pays is relative to the economic context. Perhaps the best way to think about it is not related to the dollar amount one pays, but the percentage of total income. That way one gets a balanced view of how gas or energy prices (or groceries, homes, etc) really impact the personal budget. This is a website that does that ... there are two different views of the national map: one give the comparison of price per gallon of gas, and the second gives a comparison gas prices as a percentage of household income: http://money.cnn.com/news/storysupplement/economy/gas_prices... According to this, Alaskans pay an average of $4.20 per gallon for gas ... I paid $4.03 per gallon when I filled up this morning. Arizona pays an average of $3.72 per gallon for gas. As a percentage of income, Alaskan's pay 6.55% of their income on gas, while people in AZ pay 7.07%. So, Alaskans pay more per gallon, but less of their total average income than people in Arizona. When it comes to homes, most urban places here use natural gas ... smaller towns might use combinations of fuel oil, propane, wood, or electricity (variously powered by coal, oil, and hydroelectric sources.) Few homes need much in terms of Air Conditioning that AZ uses heavily in the summer. Our home is heated by natural gas in the winter and our bill at that time is pretty hefty, but in the summer we burn practically no gas at all ... our home is also well insulated to keep in the heat when it's cold outdoors, and keep them cool when it's warm outdoors. But, in the aggregate, the total economics of energy must factor in the cost of food, production, and distribution, too ... along with the other fuel expenses of transportation, freight, and such ... so it can get pretty complicated. Each state calculates an "Average Weekly Wage" for a variety of governmental purposes, but I don't know of a chart or table that lists them in a comparison form ... I took a quickly look at the Bureau of Labor Statistics site (http://www.bls.gov/) and didn't find one there. But I feel confident that Alaska's average wage profile is in the top 10 percentile of US States and, likely, our gas prices are, too. What galls most Alaskans, is that we are virtually glutted with undeveloped energy reserves giving us two problems: 1) despite the relative availability of natural gas and petroleum here, we have to compete for our own energy on the international market ... if we don't pay what Californians or Japanese are willing to pay, then our gas either goes there or it remains undeveloped! This is true despite the fact that we even have our own refineries here. 2) The ability to develop and produce more of our gas/petroleum is controlled by large entities (government offices, private companies and environmentalists that do not live here) that have interests different from the people who live here ... therefore, the production of energy here is slower and ponderous than it should be ... there is a 10 week political conversation/argument attached to all of this, so I'll leave it there for now. Suffice it to say, many Alaskans are moving to have wood fuel stoves as additional heat sources in their homes as a hedge against manipulation of energy sources by "out side" interests. "Magpie" Jon Alaska images at the Magpie cubit - go to Alaska Photos and Commentary: http://cubits.org/Magpie/thread/view/42616/ Also Post under "Jon Deisher" on FB, LinkedIn & G+ (If you need an invitation, let me know) |
|
|||
Most of the Oil from the Pipe Lines Goes Over Seas to . i think we must Be Stupid To Allow This > Paul ![]() |
|
|||
Jon, your comments are so well received. Thanks for explaining all of this to we lower conterminous states. I thought this may be the case. RE: the scenario of mineral/oil/coal extraction and the price competition with the rest of the world... reminds me of the "Push Me Pull Me" animal. Plus, under the market competition, where's the incentive to mine? Can't be for lower energy prices? Wood burning in a pot belly stove is very effective. My former in-laws living at 5,000 ft. in Northern California relied on their stove and it was beyond effective. I don't know if you have air pollution or "no burn days". I hope to lay out a few points in the ANWR thread soon. Maybe you can speak to that, too, Jon if you have some time. I REALLY appreciate knowing how Alaskans view the rich resources. I know there are many natural resources in the United States that do and can yet contribute to a more effective, efficient energy program and certainly Alaska seems to have an abundance. Paul, I'm not sure how the pipeline market works but I suppose the commerce is based on the concept that if someone produces a widget they can put it up for sale and sell the the highest bidder. But, still, Jon, seems that since, in Alaska's case, you should get a break on producing and refining your own product at the pump. Question, is that what the profit sharing ($1,500 per citizen) is for? Or.... should that profit sharing be increased to account for selling the local oil to the out side? "There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." --Albert Einstein ~ All Things Plants, SOUTHWEST GARDENING ~Cubits.org ENERGY & POWER |
|
|||
Regarding Alaska's Permanent fund and Dividend, this 2002 article written in Europe is pretty explanatory: http://www.basicincome.org/bien/pdf/2002Goldsmith.pdf In about 2007, when the economy went in the pooper, the Permanent Fund (PF) lost about 20% of its value, but that has been completely regained. Last week it was announced that the fund today is worth a little more than $40 billion and growing. It is not clear what ultimately will happen with the fund ... sometimes people talk about using the PF as a future source of revenue to finance state government. But, the PF was established to keep the money out of the hands of politicians ... it continues to grow through regular and scheduled deposits based on taxes on mineral production, primarily petroleum, and through revenue earned on investments, say 10% per year. In this way a finite, non-renewable resource (petroleum and minerals) are translated into a renewable a growing resource (a revenue generating portfolio.) The Dividends paid to Alaskans approaches a total of about $1 billion every year, which goes (mostly) back into the consumer economy which is a private sector drive and multiplier that ripples through the economy in October and November when the economic drivers of summer (tourism, fishing, timber, etc) have slowed down. If all state managed their natural resource earnings in this way, many would not have the financial crises that they are having now. Regarding Paul's comment: It is my understanding, perhaps simplistic, that Alaska's oil is sold on the international market at those rates. Our oil is closer to Japan than Arab or Canadian oil. Arab and Canadian oil is cheaper than Alaska oil. So, if we can sell our oil to Japan or elsewhere in Asia for a higher price than we pay for Arab/Canadian oil, it makes financial sense. Our largest source of foreign oil is Canada .... Canada's oil is closer to US industrial centers than Alaska oil is ... Alaska oil is closer to Asia than Canada's oil ... While your comment demonstrates a strong national advocacy, financially it results in more earnings for the US for us to Sell Alaska Oil to Asia and then buy Canadian oil that is closer. These issues are complicated and there are more points to be discussed than can be covered in one post. I also am by no means an expert on the subject and I hope others will show up to weigh in. "Magpie" Jon Alaska images at the Magpie cubit - go to Alaska Photos and Commentary: http://cubits.org/Magpie/thread/view/42616/ Also Post under "Jon Deisher" on FB, LinkedIn & G+ (If you need an invitation, let me know) |
|
|||
"...deposits based on taxes on mineral production, primarily petroleum..." Does this mean that if a coal mining company pulls 10 million tons of coal out they're taxed on that recovery and that money goes directly to the PF? "...revenue earned on investments, say 10% per year..." -- investments meaning NYSE, bonds or infrastructure, for example? I'd think whatever the investment there are perimeters to ensure conservative investing with safe, modest returns. A while back, early 1990's maybe, I think I remember state of California or municipalities investing in some bonds (can't remember if muni, util, or corp.) that went worthless. Keeping the money out of the hands of the politicians is an excellent idea. If I had a vote I sure wouldn't favor using the PF to run state government. Can you imagine what silliness they'd lobby for? If the state seems to be run and running pretty effectively and people, public lands, critters are cared for, managed well and thrive... then any windfall in the hands of politicians well most likely be directed to scenarios dealing with corruption and paybacks and favoritism, etc. I do understand the supply / demand example as regards selling/buying Canadian/ Asia proximity, shipping, pricing. "There are only two ways to live your life. One is as though nothing is a miracle. The other is as though everything is a miracle." --Albert Einstein ~ All Things Plants, SOUTHWEST GARDENING ~Cubits.org ENERGY & POWER |
« Back to the top « Cubits.org homepage « Energy & Power cubit homepage « NATURAL GAS/COAL/SHALE/GEOTHERMAL forum |
You must first create a username and login before you can reply to this thread.