For those who love comeback stories, it is difficult to find a better example than Cook Inlet.

Just a few short years ago, Alaska’s oldest oil and gas basin was in a death spiral. Years of declining production of both oil and gas jeopardized Southcentral’s longtime energy supply, to the point that serious discussions were underway about importing liquefied natural gas (LNG).

I found the situation entirely unacceptable in a state that is still so rich in natural resources.
Fast forward to today, and I can say with confidence that bold leadership and decisive action have turned Cook Inlet around.

Just this year, Cook Inlet oil producers have boosted output 25 percent. More impressive, production has essentially doubled in Cook Inlet since fiscal year 2010, increasing from 8,900 barrels per day in fiscal year 2010 to 16,288 barrels per day presently.

This means Southcentral residents and businesses are now assured of a reliable source of energy for years to come.

This dramatic turnaround is not just a happy accident.

As governor of the state, I realized years ago the situation was serious and needed immediate action. On both the state and local level, I worked alongside members of the Legislature and with municipal leaders, like my running mate, Anchorage Mayor Dan Sullivan, to create incentives to attract new investment in the aging basin.

This proposal was broadly supported in the Legislature, with key Republicans and Democrats endorsing the effort. House Bill 280 passed in 2010 and was quickly signed into law. The resulting positive effects were almost immediate.

Investment came flooding back into Cook Inlet from independents like Hilcorp and Cook Inlet Energy, among others. The two companies have been drilling new wells and upgrading platforms acquired from others steadily, with solid results that benefit all Southcentral Alaskans. ConocoPhillips was even able to restart the mothballed LNG export plant near Nikiski.

An additional benefit of all this activity and the resulting production was the creation of a natural gas storage facility. This allows gas producers to store excess gas that is extracted from the basin in the warmer months when demand is low, and save it for the colder months when demand spikes. The storage facility offers an additional level of security for Southcentral residents who rely on Cook Inlet’s gas every day for heat, lights and electricity.

Perhaps just as important as energy reliability is the economic impact this legislation has made on the Kenai Peninsula. Ask anyone in Kenai, Soldotna or Nikiski, and they will tell you how much their local economies have picked up since oil and gas activity began surging on the Peninsula.

Alaskans eager to take advantage of the economic boom have launched new businesses, hiring hundreds of locals eager to meet the needs of the newly revitalized industry. The Alaska Support Industry Alliance, a trade organization made up of small businesses that supply Alaska’s natural resource industries, has seen its membership grow on the Kenai Peninsula by 50 percent in just four years. More opportunity and prosperity for Alaskans, combined with a secure supply of energy, is the recipe for continued economic growth in an area previously depressed.

None of these positive developments would have been possible without strong state and local leadership. Had I not taken quick, decisive action to protect Southcentral residents a few years ago, the circumstances could have been costly and unsafe. I’m proud of the work we did to breathe new life into Cook Inlet and to provide a secure energy future for the residents who call Southcentral Alaska home.

This is my record. This is what Alaskans can count on with Parnell-Sullivan. We’re committed to building the right support for decisive actions that provide opportunity for Alaskans.

About: Sean Parnell is governor of the state of Alaska and is running for re-election this year.

Received October 01, 2014 - Published October 02, 2014

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Stories In The News
Ketchikan, Alaska

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