OPINION: Urgent action needed on Alaska’s gas supply crisis

Last December, I urged the Alaska Legislature to take immediate action on our state’s impending natural gas crisis, and I proposed a straightforward action that the legislature could take to bring into production the abundant reserves of Cook Inlet natural gas that are owned by the State of Alaska. I have not been the only voice calling for action or proposing solutions. As the Anchorage Daily News editorial board noted in a recent editorial, despite “dire warnings from Enstar and gas producers, legislators gaveled out in mid-May without approving incentives for Cook Inlet exploration and production, or for that matter any meaningful legislation to chart a course that could help Alaska avoid importing gas.”

Alaska is now facing the alarming prospect of importing natural gas — a scenario unthinkable in a state with vast, energy-rich lands and resources. While it might seem expedient in the short term, importing gas is a costly and unsustainable solution that will burden Alaskans with higher energy costs and undermine our economic stability.

The crux of the problem is a lack of action and foresight. Despite knowing about the impending shortfall in gas supply, the legislature has failed to enact measures to ensure that state-owned energy resources, including the natural gas in Cook Inlet, are developed and put into production. While efforts to diversify into renewable energy are commendable, renewable energy sources are not yet capable of bridging the imminent gap left by dwindling local gas supplies.

We cannot afford to sit idle. Alaskans are already experiencing the economic strain of rising living costs, and further increases in energy bills could be devastating. Higher utility costs will ripple through every aspect of our economy, driving up prices for goods and services and placing additional pressure on businesses and families already stretched thin.

To address this crisis, I proposed leveraging the assets of the Alaska Industrial Development and Export Authority (AIDEA) in joint ventures with the companies that hold Cook Inlet oil and gas leases. Through these joint ventures, the State of Alaska can provide the capital necessary to fund the needed exploration and development activities in exchange for firm commitments to drill on a timeline that will prevent any gap in the supply of gas to the utilities. These measures will benefit not only the Railbelt but all of Alaska. By preventing increases in the cost of power for the Railbelt, residents in rural Alaska will see equivalent savings through the Power Cost Equalization formula. And projects like the Donlin Gold mine, which has a fully permitted right-of-way for a natural gas pipeline to Cook Inlet, will directly benefit from ensuring a future supply of energy from Cook Inlet gas.

AIDEA has a track record of facilitating significant projects, like the Red Dog mine, that benefit Alaskans. By forming partnerships with energy producers, we can provide the capital and direct the necessary exploration and development to secure a stable and affordable local gas supply.

This proactive approach, along with others that have been proposed, require immediate legislative action. I am calling on the Alaska Legislature to convene a special session to address this issue head-on. It is imperative that our elected officials prioritize the energy security of our state and work together, across party lines, to implement solutions that will protect Alaskans from the financial repercussions of importing natural gas.

Last December, I tried to spur action before the regular session began, but the necessary steps were not taken. Now, we are out of time. The legislature must act swiftly to authorize incentives for Cook Inlet exploration and to facilitate joint ventures through AIDEA. These measures will ensure that we have a reliable, affordable gas supply and avoid the looming crisis of energy importation.

Alaska’s future depends on the decisions we make today. I urge every Alaskan to contact their legislators and demand a special session focused on securing our energy future. We cannot wait any longer. The time to act is now.

Walter Featherly is a candidate for Alaska House District 11 on the Hillside.

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