As we approach the end of 2024, it’s interesting to reflect on the news and reader comments, especially regarding my column from November 25, 2024, titled “What’s known about gas levels in Cook Inlet warrants immediate action.” The response to the column was mostly filled with people arguing with each other rather than focusing on solving the problem of ensuring enough natural gas in Cook Inlet for the future. I had hoped for more constructive discussions about securing gas availability.
Many seem to forget that the federal government has not been supportive of oil and gas activities in Alaska, including Cook Inlet. The push for Environmental, Social, and Governance (ESG) standards has discouraged oil and gas development due to concerns over greenhouse gas emissions. As a result, there’s been little support for developing additional resources in Cook Inlet.
It’s also surprising that some people are more critical of Hilcorp, a reliable oil and gas producer, than of the anti-Alaska development forces that are discouraging investment in Cook Inlet. Hilcorp faces the same environmental challenges and negative attitudes as other producers but continues to supply the energy Alaskans need. A recent column by Hilcorp’s Luke Saugier emphasized their commitment to Alaska’s energy needs, which should be a stronger message than those pushing for alternative energy solutions.
Some readers seemed to misunderstand how gas demand works, especially regarding Hilcorp’s role in supplying most of the natural gas for the region. If other producers want to contribute to the supply, Hilcorp needs to adjust the flow from different sources.
Chugach Electric’s CEO Arthur Miller and Chair Mark Wiggin recently wrote about how their company has worked with Hilcorp to develop new gas wells, while also exploring energy options from renewables, imported LNG, North Slope gas, and new gas from Cook Inlet.
A correction to my earlier article: I was informed that the tax incentives for oil and gas were already paid to Furie, so they weren’t a factor in Furie’s struggles. However, there have been other challenges to financing oil and gas activities in Cook Inlet that have affected production.
A recent report highlighted a delay in hiring a consultant to analyze the impact of reducing gas royalties, which could speed up production. The idea of cutting royalties is not to make producers more profitable but to lower gas prices for Alaskans, making energy more affordable. Hopefully, the next legislative session will focus more aggressively on boosting Cook Inlet gas production.
A positive article by Pedro Gonzalez in MRAK on December 15, 2024, offered optimism about the future of Cook Inlet gas, suggesting that it’s a more reliable source of energy than imported LNG, North Slope gas, or renewables. If we can rely on Cook Inlet gas for the long term, we can take a more gradual approach to developing other energy sources without rushing into expensive infrastructure projects.
Regarding education, I believe there should be performance criteria for school districts before any increase in funding. This includes improving student achievement in math, reading, and preparing them for careers in fields like engineering and science, which are vital for solving energy and environmental issues. Governor Dunleavy has made it clear that he expects performance standards before supporting more funding for schools.
On the environmental front, I believe it’s time to acknowledge that the climate changes we’ve seen are part of the natural recovery from the Little Ice Age, not caused by greenhouse gas emissions. The planet was warmer before the Little Ice Age, and evidence like forests found beneath retreating glaciers shows that Earth’s temperatures have been higher in the past.
It’s time for scientists to admit that they’ve been misrepresenting the science. Fossil fuels aren’t responsible for the current climate conditions. The pressure on the oil and gas industry needs to be lifted so that we can increase natural gas production in Cook Inlet and focus on increasing oil production from the North Slope. This will strengthen our economy, help balance the budget, and ensure that Alaskans continue to receive full Permanent Fund dividends.