Just as imaginative and responsible leadership created the Permanent Fund for the perpetual benefit of all Alaskans, the necessity and opportunity presents itself to you current leaders. With increased profits from high crude oil prices coming into State coffers, it is time for Alaskans to more completely benefit from our oil resource by building and maintaining a centrally located refinery built by Alaskans, operated by Alaskans, producing products for Alaskans. While I certainly lack any knowledge of the technicalities, both administratively or practically, to accomplish such an enterprise, below I outline some main outcomes or goals which should be incorporated in any scheme.
I. While a knowledgeable outside corporation would have to be hired to supervise building the refinery, Alaskan labor should be hired exclusively. Alaska Natives should be represented in this labor force equal to their percentage of our population. So, from inception, Alaskans already benefit.
II. The refinery should be centrally located, on State land, near Fairbanks, near the Trans-Alaska Pipeline which would directly feed crude to the refinery.
A. We would be selling the crude to ourselves which should begin to make the cost of final products less expensive.
B. From this location, fuel or heating oil, gasoline and lubricants could be transported to all of the rest of Alaska either by road, barge, aircraft or rail.
C. Individual Alaskan residents, as well as local governments, would be issued a "discount card" which would be used to purchase refined products at a discounted price while others, such as tourists and out-of-State trucking companies, would pay higher, regular market prices. The State would be in charge of setting these discounted rates. We Alaskans, then, would directly and continuously benefit by being in control of the price. When Alaskans' needs are satisfied, any surplus refined product could be sold to out-of-State markets at fair market value.
III. Alaska residents, including the fair percentage of native Alaskans, should be trained, at State expense, to operate the refinery, creating permanent jobs, further benefiting Alaskans for the long term.
IV. No State tax would be assessed on fuel purchased by Alaskans.
V. No federal land and no federal dollars should be used to construct and operate the refinery. Doing otherwise only predicts federal regulation and, more importantly, constitutional challenges from non-residents.
VI. Refining capacity should be sufficient, based on the best assessment possible, to supply all fuel needs of all Alaskans for the foreseeable future.
GENERAL BENEFITS OF THIS ENTERPRISE:
* All municipalities, but particularly villages, would be relieved of the burden and uncertainty of "outside" energy market forces.
* State services such as road maintenance would be fueled as economically as possible.
* The ferry fleet would, logically, be a large consumer resulting in economical and profitable service for Alaskans, since we would be selling fuel to ourselves at a discounted price.
* Including other byproducts of refining, the refinery should primarily produce: diesel and heating oil to light and heat Alaskans' homes and businesses; gasoline for cars, trucks, outboards and snowmobiles and avgas to fuel light aircraft both private and commercial at stable and low prices.
* Suggested output allocation: 50% private citizens; 25% government; 25% business.
* Our fishing fleets certainly would gain an advantage.
* Short and long-term employment would be created for resident Alaskans.
SUMMARY: When I use the adjective "all-Alaskan," I mean a refinery built with Alaskans' money, built on Alaskans' land, built with Alaskan labor, operated by Alaskans, and one which produces refined products for Alaskan consumption.
Jack Hodnik, Box 876, Haines, Alaska 99827 (907) 766-3396
jackhodnik@yahoo.com
Sunday, July 20, 2008
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