Whitaker says Fairbanks in ‘energy crisis'

Assembly rezones parks

Published Friday, March 28, 2008

Mayor Jim Whitaker, who has increasingly sounded alarm bells over rising energy costs, used a public meeting Thursday to call attention to what he has referred to as an energy “crisis” in the greater Fairbanks area and Interior Alaska.

Whitaker told Fairbanks North Star Borough Assembly members Thursday night that they are months away from seeing details of a proposed alternative energy project. The project aims to shift part of the community’s energy needs away from petroleum products — heating fuel and gas — and toward coal and biomass as resources.

Whitaker said the proposed project, which he said has drawn interest from engineering firms and potential partners, could require the establishment of a new cooperative or public-owned entity.

A former chairman of a special state legislative committee on oil and gas, he said that while many residents and businesses have pinned hopes on the development of a massive natural gas pipeline from the North Slope, he didn’t think “we as a community can wait for it.”

“We cannot ignore the fact that we are in a very real crisis,” he said.

The assembly set aside over $600,000 in January for future energy projects and is expected to receive revenue sharing this year from the state. Assemblywoman Nadine Winters said after the meeting that she agrees Fairbanks should be proactive when looking to deal with energy costs that are, under current conditions, largely out of local leaders’ control and could require a community-level initiative.

“It can’t be overstated how serious a problem this is for our community,” she said. “I think that we’re all worried about the health of our community with what the cost of energy has done.”

Whitaker noted the price of oil spiked to $107 a barrel this week and corresponding prices for fuel and gas in Fairbanks have risen to “unsustainable” rates. He said the past two years’ increase in fuel costs has sucked money out of the local economy on a scale comparable with the hypothetical closure of Eielson Air Force Base.

Whitaker said the price of oil is tied to geopolitical events and can’t be expected to correct itself through traditional market forces in light of the rise of emerging foreign economies and an imbalance between international demand and production capacity.

Whitaker pointed to indications that fuel prices are leading many in Alaska to reconsider whether they can afford to live in a state with such long winters.

“When 70 percent of our population — even in an unscientific poll — is considering leaving, we need take notice,” he said.

The proposed energy project aims partly to produce synthetic gas and fuel from coal, wood and other resources. Whitaker estimated it could cost in the “$1 billion range” and would require some public investment.

Parks rezoned

Strike a win for fans of neighborhood parks.

The Fairbanks North Star Borough Assembly on Thursday rezoned eight parks at once, adding, as borough officials explained it, another “layer of protection” against the chance they could be developed in the future.

The measure ensured the 132 acres of parkland, including Pearl Creek and South Fairbanks parks, can only be used for “outdoor recreation” purposes. The unanimous assembly vote, technically speaking, changed the zoning at each park.

A number of residents, including some who live near parks, had asked questions about the proposal after it surfaced early this winter, borough officials said. One, Rose Anderson, asked the assembly Thursday night whether the measure could somehow lead to development on McKinley Park south of Geist Road.

“There’s no chance that it could be put up for sale?” Anderson asked.

Borough officials said the opposite is true: Parks on Thursday’s list had previously been zoned to handle everything from homes to office buildings, an inconsistency borough managers said the area’s Comprehensive Plan calls for correcting.

“It properly rezones the parks so they cannot be used for anything but outdoor recreation,” Whitaker said.

Thursday’s ordinance also rezoned the Aurora Playground Area, Weeks Field and Myrtle Thomas, Bluebell and Mercier parks.

Contact staff writer Christopher Eshleman at 459-7582.

Community Discussion

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  1. brianbb98
    3/28/2008, 12:34 a.m.
    Suggest removal

    we're too dependent on oil.

    that is all..

  2. AKhusky
    3/28/2008, 5:14 a.m.
    Suggest removal

    Does Mayor Whitaker think Fairbanks is the only community in the country facing these issues? Fairbanks is in no more of an energy crisis than any other community in the country.

  3. user6244
    3/28/2008, 6:34 a.m.
    Suggest removal

    Jim Whitaker is right it is unsustainable.
    People are not only thinking of moving. I am in process of selling my home and am in search of another location that has a less of an impact on my wallet in terms of energy usage and if energy cost get worse I hope to be located somewhere that heating will not be required to insure my families safety.
    The ideal location will have a short winter season if any and the overall taxes that will have to be indured should be less than the impact of the high cost of energy.

    It will certainly suck having to pay sales taxes, possibly State income taxes along with property taxes. I only hope it possible to find one with the least impact to my bottom line when compared to the high energy cost, transportation/ shipping cost and it's impact on the purchasing of food and other products here in fairbanks.

  4. woodster
    3/28/2008, 6:35 a.m.
    Suggest removal

    I believe the state as a whole needs to get more involved in pushing for the natural gas pipeline. The reserves on the north slope are so vast that we could all benefit in time from this. But Alaska should be the one putting in the line. Not the big corporations. Then we would be the controlling factor in the whole thing. It needs to happen soon. All these talks with different entities is just a continuing delay. Natural gas is a plentiful alternative fuel to oil. Natural gas is the answer to our fuel crisis. If we put in our own line then we wouldnt be in the situation we are in now with oil. We pay lower 48 prices for fuel and we refine our own oil. Not very fair is it? So Alaska lets build the darn thing with portions of the money coming from the permanent fund and whatever else it takes to get it down to Valdez. Ship portions of it and sell it for profit. But lets also plumb alaska in so a majority of the state benefits from it.

  5. AKhusky
    3/28/2008, 6:49 a.m.
    Suggest removal

    user6244:
    There are cost of living calculators online that allow you to compare the cost of living in Alaska to other places of your choice. Good luck finding a new home.

  6. Bugger
    3/28/2008, 7:47 a.m.
    Suggest removal

    user 6244 If you are serious about finding such a place email me at tolong4@hotmail.com and I will send you information. NO heating bills, average $25.00 per month, water and sewer, $4.00 , property taxes $105.00 per $200,000.00, no income tax, gas $2.55 per gal. Yes these places exist but not in the USA, and surely not in Alaska where you can buy a vote for less than $500.00,,,, you are being SOLD by your elected officals. Remember the OIL line is comming and we all will get rich.... and cheap fuel forever,, SUCKERS....

  7. justasking
    3/28/2008, 7:58 a.m.
    Suggest removal

    fuel is still cheap here in AK...and the cost of living is low compared to lots of places in the USA.

    much cheaper to live here in FBKS than say in Atlanta Ga, Washington DC, San Fran CA, New York.

    why is everybody whining about the cost of fuel??

  8. kgage
    3/28/2008, 9:07 a.m.
    Suggest removal

    So all the policitics in the world is not going to help now. Everyone involved now needs to look at other means of heating, electrical, and heaven forbid a different fuel for the housing, cars, ect. We really need to loose the oil companies and the way they play us americans, I do not have the answers but I do know that they do and are holding it over our heads. So what about solar power, what about supplement fuel why does it have to be oil.....

  9. AlaskaCub
    3/28/2008, 9:09 a.m.
    Suggest removal

    Citing a comparison to 3 of the most expensive places to live in America doesn't do the argument justice. I recently had a friend leave Alaska (in the last 60 days). He has managed to buy a brand new construction home and his mortgage with all additionals in it plus utilities barely rivals my monthly energy bills during winter without even calculating my mortgage into the equation. The fact is that our housing prices are high, our retail prices are high (and climbing), and now our energy costs are exceeding what 50+% of our community can afford (and climbing). Continuing down the path we are on is not good for our community and its economy. We got real problems and if they arent addressed we will surely be seeng a reduction to our community. In my 10 years living in this great state ,never have I heard so many people around me talking about leaving for the lower 48 for good. Even the most adament of outdoorsman are thinking twice about what Alaska has to offer and is the cost for it too hugh!

  10. theabowman
    3/28/2008, 9:39 a.m.
    Suggest removal

    Yeah, I agree with Justasking. It sure is a bummer to have to pay so much to heat our homes--no doubt about it but we don't pay income tax or sales tax or property transfer tax or a schoold tax. In fact, we get money back as a PFD. Nowhere else in the country does that occur. Yes, it's expensive to heat our homes but we don't have air conditioning costs in the summer either. In his first term campaign for mayor, Whitaker touted the gas line--well it has not come and he'll soon be term-limited out. He spent a lot of money on the Port Authority and they could not even get their application in to the State on time. Now we will be asked to cough up some more money to the good ol' boys who are his pals for alternative fixes. Who stands to make money here? Who is positioning himself for life after being mayor?

  11. este
    3/28/2008, 11:02 a.m.
    Suggest removal

    The state should sell royalty oil and refined products to residents at below-market prices. It would help families, and by reducing the cost of transportation it would help reduce the cost of building materials and groceries. Much better than giving people beer money directly from the general fund.

  12. DistantThunder
    3/28/2008, 11:44 a.m.
    Suggest removal

    I'd say it's more of an "ENERGY SCANDAL" than try to soft-peddle it as an "energy crisis".

    The Sasol & Choren Fischer-Tropsch hydrocarbon reformer technologies are fun to play with, but don't overlook the practicality of using straight silverado-LRCWF.

    http://www.angtl.com/
    ANGTL F/T-diesel is crystal-clear and you can cook your fried chicken in it too....(;-P)...GACK!!!

    Silverado-LRCWF [aka> silveradogreenfuel] is a great all-purpose-fuel when combined with hydrogen-electrolysis...
    ..and at the advertised price of $15-$20 per bbl the cost per btu is much more friendly than the other screw-jobs humanity has been suffering under because of the monopolist-corporations.
    http://peswiki.com/energy/Directory:Hydr...

    As long as we can cut firewood and build our own windmills,etc.. we have a decentralized hedge against total energy slavery.

    These alternative energy technologies are scalable in size, less risky for the environment, and are best applied to the market as portable modular systems..
    ...much like this portable modular affordable topping-plant-->
    http://www.chemexinc.com/600_bpd.html

    Whether dollars, or ameros, money isn't everything, especially when your citizens are freezing to death in their own homes trying to light their furniture on fire with their PFD check, and their last dry match.
    Kinda reminds ya of "To Build A Fire" by Jack London, eh?

    Joe Vogler was right...
    Alaska should join with Nunavut as an independent territory.

    ...flash/rumble

  13. joy_Fairbanks
    3/28/2008, 12:23 p.m.
    Suggest removal

    Yeah, you'd never know that Mayor Whitaker and the FNSB Assembly are aware we are in an energy crisis with our outrageous property taxes and the ever increasing borough budget and number of borough employees. They are so out of touch with the common person who live here, who not only struggle to pay their mortgage payments but in the last couple of years, double heating bills.

    See he and the Assembly have no problem adding three recreational parks and several employees to plan and manage these, a Fish Hatchery, and many other unneeded projects that borough residents will have to pay for plus the yearly upkeep but most will never use. Then on the other hand, these people are voted into office and so many people don't take the time to even go vote. Hopefully in the next election, we can elect people who live on $30,000 incomes and don't hold well- paying jobs and experience the "energy crisis." Too bad the FNSB doesn't follow the same advise; cut costs, lay off some employees and get down to bare basics like we have.

    See by some of the letters, must be people who don't live in Alaska and say the whole country is suffering the energy crisis. We, who live in Alaska, where seven months out of the year we have below zero temperatures; heating our homes is not a choice but a necessity.

    Solar and wind power is not only cost prohibitive but unfeasible in most of Alaska and imagine with more people turning to wood and coal heat, the FNSB banning burning wood and coal for heat is next.

  14. confesor65
    3/28/2008, 12:30 p.m.
    Suggest removal

    Where has this mayor been, hibernating with the bears. When a leader elected by the people makes these kind of comments one cannot ignore the fact that this man is not the person for the job. It will take someone with outstanding leadership qualities and an educational background in the resources of fairbanks to really stand up and come up with solutions. What this individual is signaling is "my hands are tide i cant do anything about it" instead what he should be saying is I will conduct a symposium with our economic, energy, and governmental leaders to brain storm and find a solution. Whether its taxing the profits of big oil and making it illegal for them to pass on the cost to the consumer. Or invite alternative energy leaders to consult on alternatives. That is what a real leader is about.

  15. huffy
    3/28/2008, 1 p.m.
    Suggest removal

    whitiker is a bigger dumbass than I thought he was if he just got it figured out!Stupid politicians anyway

  16. Tony08
    3/28/2008, 1:17 p.m.
    Suggest removal

    Atleast Whitaker realizes and admits there is a crisis here were he's headed with it who knows but atleast he admits it. I have not heard any other politician say anything about this situation. How come Young or Stevens or the Murkowskis have not mentioned it or did i miss them saying something? Our fuel prices are not high justasking? Were are you getting your cheap fuel and can i buy there too? Last i seen gas was 338 a gallon and heating is around 350 a gallon and thats cheap. Did you know the national average is 328 a gallon and down in the states they are paying 302 to 310 a gallon and our prices are cheap. I dont know were bugger is but i would not mind paying 255 a gallon again. I said it before just give us one big payout of the PFD and we can all payoff the mortgage and have and instead of paying that monthly bill use the money to buy fuels and food

  17. Chester
    3/28/2008, 2:04 p.m.
    Suggest removal

    I think the Mayor is right on!!!

  18. AlaskaCub
    3/28/2008, 2:07 p.m.
    Suggest removal

    #2 heating oil is now up to $3.66 a gallon as of today. What will the winter of 2008/2009 bring????

  19. AKhusky
    3/28/2008, 2:19 p.m.
    Suggest removal

    joy_Fairbanks

    "See by some of the letters, must be people who don't live in Alaska and say the whole country is suffering the energy crisis.:

    17 years in Alaska.

  20. Chester
    3/28/2008, 2:21 p.m.
    Suggest removal

    It is about time our Government steps in and maybe even consider Nationalizing our Energy Companies. I am fed up with BIG OIL running my life, my famlies lives and our futures! Enough is Enough!!

  21. AlaskaCub
    3/28/2008, 2:34 p.m.
    Suggest removal

    I am seriously considering buying an aux wood fired boiler, but how long is the Borough gonna allow us to smoke up our neighborhoods and town before they blow the whistle on that option???? Its coming, as so many people I know are gonna plan on burning more wood next winter with woodstoes , wood boilers and whatever else they can think of its just a matter of time.

  22. AKhusky
    3/28/2008, 4:01 p.m.
    Suggest removal

    AlaskaCub,
    I believe you are correct in your assessment about wood-fired boilers. With the new air quality standards for fine particulates, and the fact that Fairbanks will likely be a non-attainment area, the writing is on the wall.

  23. DistantThunder
    3/29/2008, 9:39 a.m.
    Suggest removal

    Hey Looky Looky !!! Hey WOW !!! Check this out !!!
    Like yeah, Are Alaskans Stuck On Stupid?, or what???
    ..Have the Texans been putting Stupid Pills in the Fairbanks water supply????
    The NorthStar Borough is late for work again too busy picking zits in the mirror while the rest of the world marches right past them..
    whutta bunch of losers!!!!

    You all sit on your ass, and can't pass gas...
    ..looks like you have a Texas lawyers head stuck inside your posterior orifice causing a scandalous bowel obstruction.

    http://www.russiatoday.ru/business/news/...

    Roman Abramovich and Valery Abramson, the two most popular guys in Chukotka have just purchased a 19meter diameter tunnel boring machine for digging a 4-lane highway under the Bering Straits to Nome.
    http://www.russiatoday.ru/business/news/...
    March 28, 2008, 18:01
    Billionaire will dig tunnel linking Russia & US
    Russian billionaire Roman Abramovich has fuelled talk of a massive tunnel between Europe and America by forking out $160 MLN on the world’s largest drill. The 19-metre giant will be the first drill capable of boring a four-lane tunnel.

    The project would link Russia’s far eastern Chutoka region, which Abramovich governs, with America’s Alaska.

    `````````

    now let's compare apples and oranges here...
    $160million to buy the machine for boring a tunnel under the Bering Straits.
    [and these guys paid for it out of their own pockets]
    ...Do you think there's enough loose change in Fairbanks to buy a Reinforced Thermoplastic Pipe Extrusion Machine???
    http://www.alibaba.com/trade/search?Type...

    http://www.soluforce.net/

    http://www.extrusion.com.cn/esp/product/...

    I can sit here and toss verbal hand-grenades and heap insults on all the readers of this column for week after week, and you all look like deer caught in headlights.

    .....flash/rumble

  24. Reader1
    3/29/2008, 10:10 a.m.
    Suggest removal

    There is a reason the founding fathers saw fit to write in the 2nd Amendment.

  25. Territorial
    4/5/2008, 9:56 a.m.
    Suggest removal

    I agree in principle to what your mayor has stated about not waiting for a gas line. Although not in this newspaper story, he was quoted in a radio story (paraphrasing it here) the private sector won't be able to lower prices much below current market prices for oil. What balderdash! Is this guy a Republican? I realize that big oil is also the private sector, but to paint mega-business and smaller businesses with the same broad brush is a bit too rich for me.

    Does he recall the cost overruns when state and municipal governments built many of the power projects in the early eighties? Is he a Republican? I think that is what he claimed to be while serving in the legislature. I realize Republican's aren't the party with whom to be associated today, however, saying the private sector can't produce energy at below current market rates is total bunk.

    There was tremendous waste in the 80's energy projects, and it was because of the huge cost overruns with which government generally gets hit. How is today any different? How will what you are contemplating proposing going to be any different Mayor?

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