By A. M. Johnson
September 21, 2012
Well here we are, $878.00 for each Alaskan's permanent fund share. What a disappointment to many, particularly those who are members of the 47% Romney correctly points out as being on some level of government largess.
The permanent fund payout is based on market conditions that reflect a five year average of the investment income. We know the market has been somewhat in a state of flux. All well and good, and surely this explanation will be offered as the most plausible and as a result the only explanation. We know that the gross fund income other than investment funds, is from the volume of crude oil that is transported via the Alaska pipeline. There is very little that I am aware of in terms of natural resource revenue other than oil and gas that feeds the base of the fund growth.
However, could we not look at this result from a different aspect? I submit the question should be addressed to the staff that managing the fund, heck maybe our local banker and chair Bill Moran of the fund would be willing to expound on the subject.
Here is the subject: 'What would the result had the pipeline currently flowing at 1/3 of it's volume, be had Alaska been allowed to exploit the vast amounts of subsurface oil reserves during these years of declining pipeline volume. In other words, had we been "Drill Baby,Drilling' and the pipeline full what would the fund profits been that investing in the various holdings which create the dividend basis be?
Let me just throw out a figure and have somebody prove it wrong.
Given past dividends based on full pipeline usage of past years in the range of $1500.00 to almost a couple of Grand in those past years for each and every person in the State verses this current $878.00, the result of say over say a 10 year minimum decline in pipeline volume. It is in my opinion,safe to project that every living person in Alaska has been denied thousands of dollars maybe 10's of thousands in lost individual permanent fund income as a result. What caused this situation?
Well, both political parties will point their fingers as they always do, at each other, up in the air, in circles and so on. It surely is not the fund management, they can only work with the limited declining revenue income and current fund balance.
I submit that the real villain in this tale are the wacko environmentalist that plague every turn of economical effort at every turn of the wheel and gleefully enjoy the depression and havoc that they cause with every law suit. They live among us.
The decline of pipeline volume in relation to the constant and steady drum beat of environmentalism has taken its toll.
So, as those who really could use a fatter permanent fund check over what is being allocated, you might want to take a gut check and look around at the restrictions and restraints placed on the harvesting of our natural resources at the bequest of these socialist do-gooders, in the name of 'saving the earth'. Those environmental results reflect your being denied what 'Could have been'.
To this let me add that the situation in the Middle East will have a devastating result on supply of petroleum through out the United States. Due to past and current Federal government mentality and direction, America is in deep tapioca on being self reliant on petroleum requirements. This situation will suffer Alaskans extensively as the restriction on finished products become acute due to lack of refinery production in the lower 48. Alaska is at the end of the Lower 48 finished products petroleum pipeline. You can charge that to the environmental 'safe guards' imposed to the extent that it is counter productive to construct a new refinery.
America will find itself so far behind the eight ball in petroleum production and refining as it accelerates the effort to become self sustained as a result of this world situation running head long into the constriction environmental cost of strangling industry.
Look in the mirror, we have only ourselves to blame for allowing socialism in the guise of environmental activist to rule our National destiny.
The 500+ elected officials of both parties called Congress, have truly screwed the goose as they have parsed national energy policy. We would do better as a Nation if Wal-Mart were contracted to run the country.
Of course, times change and so will demands. The pendulum do swing, yes it do. It could well be an amazing picture as the 'unknowing' masses become the aware that the pumps have gone dry, the price is beyond reason, and no more or dinky permanent fund checks. Yes in deedy, it will be a time to listen to that 'Swish" of the old pendulum blade.
Meanwhile, this year your dinky little permanent fund check will not provide much of Christmas cheer.
About: "15 years with Standard Oil including 4 years covering the North Slope as supplier representative. Now just an old retired coot burning a wood stove and jigging for a cook fish."
Received September , 2012 - Published September 21, 2012
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