Letter to the Editor

Big Oil

Published Sunday, May 4, 2008

April 29, 2008

To the editor:

Lately, as I talk to friends and family, the conversation invariably turns to the high cost of heating our homes and fueling our cars.

I recall during the “oil crisis” of the 1970s that speed limits were lowered, people were encouraged to set their thermostats to 68 degrees and ugly car design prevailed. It’s interesting that our politicians don’t propose these things again.

It’s especially interesting that the oil companies didn’t want to develop a gas pipeline because they couldn’t get the concessions they wanted. Since Gov. Palin nominated a Canadian firm for the line, the big oil companies are now wanting to build their own — and in a hurry. Big Oil knows they can shaft us anytime they want, so here we go again. I know who runs the state of Alaska ... Big Oil. Our politicians are more interested in building “Bridges to Nowhere” than taking care of the little guy who is struggling to heat a home and put food on the table. Greed, pure unadulterated greed.

The natural resources of the state of Alaska were to be developed for the benefit of the people. It appears that the only ones benefiting from our resources are Big Oil executives with their lofty salaries and some politicians dying to either get re-elected or have a job lined up when their political career is over. We here in Fairbanks have a pipeline that runs by us and a refinery just down the road. So why did I just pay $3.67 for a gallon of gas — not to mention the heating or electric bills?

I am usually a reasonable and rational individual but maybe we, the people of Alaska should take our stand. I am beginning to believe that we should secede from the U.S., seize control of our resources as Hugo Chavez has done in Venezuela and make it easier for us, the Alaskan people to live quality lives once again.

The only other option I see would be to tax (with no deductions) the living daylights out of Big Oil and subsidize fuel in our state.

 

Community Discussion

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  1. The_Alaska_Curmudgeon
    5/4/2008, 12:05 a.m.
    Suggest removal

    Hmmm, tax big oil, then subsidize fuel in our state. So, big oil gets taxed and passes the cost on to consumers. The tax dollars go to the state, which takes out its cut for administrative purposes, then hands the balance out to citizens as a subsidy. We take that subsidy and buy more fuel from big oil, paying the hiked tax in the process, big oil hands tax dollars to the state, which takes its cut for administrative purposes, then hands the balance to us as a subsidy, which we take and spend on fuel...

    Ever driven around in a circle?

  2. Tony08
    5/4/2008, 12:14 a.m.
    Suggest removal

    3.67 a gallon that was fridays price its 3.79 now. I guess someone got bored and had nothing better to do than raise the price again.

  3. scott_tanner
    5/4/2008, 12:37 a.m.
    Suggest removal

    "Secede from the US?" I'm totally pro ak, (born and raised) but the sad truth is that the US would never ever let that happen. War isn't pretty, uglier on our home land. Oil, fisheries, timber and tourism are reason enough for the government to make sure it never happens.

  4. mike
    5/4/2008, 1:43 a.m.
    Suggest removal

    It's hard and inconvenient but the truth is our only trick is to drive less and more efficiently. Many will say they can't do that, jobs, school, shopping, etc. I know. I used to get around strictly by bicycle. My kid in a seat over the rear wheel, a pack on my back, and a basket on the handle bars. Then I learned to drive and got a car. Instead of one trip a day I would make 2 or 3. Instead of walking from the old College Road Fred Meyer to the College Road Safeway, I could drive. How lame is that. So yes there are difficulties but little by little you can and must adapt. Let's show them we can.

  5. sosorry
    5/4/2008, 5:37 a.m.
    Suggest removal

    I am still more worried about being taken out by an American driving a white pickup than an Arab terrorist. We took a wrong turn 8 years ago and barreled on down the road of run it into the wall consumption. Right now we should be keeping our eye on the ball right here in Alaska and that ball is the Gas Line. It is time to bring this one question to the people: Do we keep it in Alaska yes or no?

  6. bikebuilder
    5/4/2008, 6:09 a.m.
    Suggest removal

    If you want to get their attention you need to hit there pocket. Organize public demonstrations at the gas stations they supply.
    Most of us in this community would see the value in this action and support it.
    Hold signs to which gass station to support and go to, that will bring them to the table,
    I'm willing to help

  7. polarmark
    5/4/2008, 6:53 a.m.
    Suggest removal

    would just like to point out that if that "bridge to nowhere" would have been built, it quickly would have been a bridge to somewhere. the bridge itself would have been a good thing. how they went about getting the money for it was questionable.

  8. Fairbanksgas
    5/4/2008, 7:21 a.m.
    Suggest removal

    If you want to protest go straight to the front gate of Flint Hills. The box stores are often selling gas for less than cost when you take advantage of the reward programs. There is no money in selling retail gasoline, all their profit is inside the store when you get coffee and snacks. That being said, when you compare Flint Hills wholesale price to prices in the US you see that they charge us 30-50 cents more per gallon. Go to www.fairbanksgas.com to find out more about this.

  9. bikebuilder
    5/4/2008, 7:26 a.m.
    Suggest removal

    I thought flint hills only sells diesel fuel, and petro star refines and sells gas to local stations. Is this the case?

  10. Fairbanksgas
    5/4/2008, 8:30 a.m.
    Suggest removal

    Other way around, except that neither refinery makes low-sulfur diesel for on-road use. The low-sulfur fuel is only made in Kenai. Instead of investing in the upgrades to make cleaner fuel, Flint Hills gave all their profits to Kosh Industries, the largest private company in the US. Petro Star's operation is less than 1/10 the volume of Flint Hills. Petro Star processes 17,000 barrels per day while Flint Hills processes 220,000 barrels per day. You would like to see competition, but there really is none.

  11. Copper_River_Red
    5/4/2008, 9:04 a.m.
    Suggest removal

    Coal to gas to liquids.
    Abundant, cheap, much less polluting.

  12. FrozenAK
    5/4/2008, 9:39 a.m.
    Suggest removal

    This is to the original letter concerning taxing "Big" Oil.

    Do you happen to know the current tax structure on a bbl of north slope crude?

  13. DistantThunder
    5/4/2008, 12:23 p.m.
    Suggest removal

    Tap TAPS........
    Tap TAPS........
    Tap TAPS........

    [hadda say it 3times to make my point]

    Flint Hills tapped TAPS using a bunch of lawyers and made it stick.

    Who's bright idea was it to remove the topping plants where you could go and get your own diesel at???
    http://www.chemexinc.com/600_bpd.html

    Well, here's a handy doc to use for formatting your own purchase-agreement to buy r-oil & r-gas...
    http://www.dog.dnr.state.ak.us/oil/progr...

    ....Copper_River hazzit figgered out...
    if you study real hard on the internet about Fischer-Tropsch process, then you will soon realize the process is scalable down to a size you can fit into your own pole-barn shop building..
    Yup, you can cook-up your own diesel from wet-lignite, just like moonshine from corn.

    ...or, you can take the biotech approach and grow your own octane-hydrocarbons in a stainless-steel backyard composter --->
    http://www.ted.com/index.php/talks/view/...

    or, you can forget about hydrocarbons completely --->
    http://www.blacklightpower.com/applicati...

    ......flash/rumble

  14. realdeal
    5/4/2008, 1:11 p.m.
    Suggest removal

    As stated round and round and round in a circle we go. The state gets the royalties. We get the shaft. The state has initiated inquiries into the problem. Stall tactics. The price we pay is based on current market value. Gvea has their hand in price manipulation too the refinery. The Low Sulfur fuel has only been hinted on.
    Maybe we need a local website as to who is selling the cheapest fuel and create a small price war locally. As we aren't in the position to boycott individual big oil in AK. A lower price in quantity puts pressure on competing services. Then how can we put the screws to Gvea. Maybe some of these backyard techniques are worth considering.
    Mostly I believe that most of this is fantasy, and every thread of this nature will still be a circle jerk.
    Maybe demonstrations outside the refinery, or city hall, Gvea, floods of letters to our elected officials. We absolutely need to make a visual and political stink to get any action. To get any immediate action, our goal should be some initiative before the snow flies next fall.

  15. endotheroad
    5/4/2008, 4:11 p.m.
    Suggest removal

    Just like in a couple of posts above, every where I go I keep hearing grumbles about protesting the energy crisis. And I like the idea of community-wide protest campaigns but there are some questions to be answered befoer we run get a permit for lawful assembly.

    What exactly do we hope to accomplish with a campaign? I think the oil people know the citizenry is mad as hell but **has to take it** and the politicians know their constituents are mad but don't have many options. Thus just telling them we're mad is like peeing into the ocean and expecting to see the tide rise. Unless there is a specific agenda to the campaign it's just a waste of already scarce energy.

    So what do we want? And don't say 'lower gas prices at the pump' 'cuz you already know that just AIN'T agonna happen. It doesn't matter if we open ANWR (we won't see any impact for at least 10 years anyway and then it would be a minuscule effect on price) or some new source of oil is found or OPEC nations start producing more - the oil companies will not simply be so kind as to reduce the price just because there's more oil available. Aside from the fact that there are production controls in place to keep that increased production scenario from happening, would YOU walk away from the kind of profits they've seen lately? And why would they reduce prices? 'Oh, those little people are mad. Better help 'em out cuz we're NICE guys.' or 'Uh oh, an oil SURPLUS, better get rid of some!' When was the last time you saw gas "on sale"?

    The price is up and it's staying - that's just logical. So the only thing we can do is find ways to mitigate the damage of higher costs. . .

    State fuel cost rebate... premium on our PFD checks next fall... locally owned co-op to produce fuel... There are so many seemingly well informed individuals who post on this website regularly, who all seem to have strong opinions and are able to write quite persuasively when they want to, and who have connections that would be useful if they were put to use on this issue. Why not do more than just whine and growl? This needs a positive, focused community effort.

    So who's gonna organize this campaign? I'll help...

    <ducking to avoid flame guns>

  16. realdeal
    5/4/2008, 5:41 p.m.
    Suggest removal

    Endoftheroad, count me in. As you stated there are some very well informed individuals who post comments very early in the day, all day, on almost every issue.
    Apparently they have the time. And or maybe the knowledge to organize. My suggestion is for them to put their comments and opinions into action rather than torment. I Would try my best to make time to support these initiatives, while trying to make a living, and support them.
    I still think we are fantasizing unless we can find an organizational leader, with the backbone and the time. Otherwise we are just in for more of the same circle jerk, with the same boring commenters.

  17. JayT
    5/4/2008, 7:59 p.m.
    Suggest removal

    Bikebuilder...If you want to fire up the people of this state and you want to be taken seriously..Put down your pipe and Go back to school and learn how to SPELL!!!!

  18. JoeSmith
    5/4/2008, 9:13 p.m.
    Suggest removal

    JayT, I looked back at your post history. Feel free to criticize spelling when you stop throwing random capitalizations, periods and commas in your posts. Go back to school and learn GRAMMAR.

  19. realdeal
    5/7/2008, 7:58 p.m.
    Suggest removal

    Endoftheroad, I have been caught up in domestic affairs and have not had time to comment, lately. This thread is running out of time.
    We should still keep our focus. This issue is not going away.
    Apparently, some of the people who hold all the answers are all talk.

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