Energy

Senators Murkowski visits the Kotzebue windfarm. Secretary of the Interior Gale Norton, Secretary of Energy Samuel Bodman, Sen. John Thune (R-SD), Sen. Murkowski and White House Counsel James Connaughton on the ground in ANWR

Our growing dependence on foreign oil for our nation’s energy needs is one of the most pressing issues facing America. Congress in the past several years has made progress on energy, but still more needs to be done.

In 2005 Congress passed the Energy Policy Act that provides tax breaks and incentives for research and construction of many forms of renewable energy, funding to jump start new nuclear power plants, funding for research into hydrogen fuel cells provisions that remove roadblocks to some oil leasing, coal gasification, oil shale  and gas hydrate research and development.

In 2007 Congress passed the Energy Independence and Security Act that concentrates on promoting energy efficiency and fuel conservation. The bill sets new energy efficiency standards for a host of major appliances and for light bulbs in the future. It raises the gas mileage that new vehicles will need to get, hiking mileage requirements by 10 miles per gallon by 2020 – a change that should save Americans $25 billion a year in fuel bills. The change, however, allows American automakers a lot of flexibility to achieve the standards so they can continue to make the types of vehicles Alaskans need to get around on snow and ice. The measure increases the amount of biofuels that America likely will produce, lessening our dependence on foreign oil. The bill also provides more aid to get geothermal, ocean, and in Alaska, small hydroelectric projects moving.

The 2007 bill includes two grant programs, the Renewable Energy Deployment Grant fund to provide federal aid for all forms of renewable energy development in Alaska. It also authorizes funds to help get geothermal power projects underway in high-cost areas. Getting the programs up and running and funded will be a major goal of mine in the future.

But besides pressing for alternative fuels and conservation, the bill tries to speed supplies of traditional fossil fuels to get to market. It includes technical fixes to help the Alaska Gas Pipeline Coordinator’s Office get staffed and running more quickly so that it can help the state’s effort to get a gas line built.

I intend to continue to press for the most significant step Congress can take to achieve a balanced energy plan. That would be to increase domestic energy production by allowing a tiny portion of the Arctic coastal plain in the Arctic National Wildlife Refuge to be opened for some type of oil exploration and development. Opening just a few thousand acres offers the nation the single best opportunity to find more oil improving our energy security. Opening ANWR will grow our economy by producing thousands of jobs across the country and through the use of new technology will protect our environment.

But Alaska has more than oil on our North Slope and in offshore waters. We lead the nation in coal reserves. I intend to continue to push for more research and development funding to help produce coal and then to capture and store the carbon emissions it releases and capture any pollution it can cause. I also will continue to fight for funding to install alternative energy that can cut the high cost of electricity based upon the current high fossil fuels that too many Alaskans pay.

Natural Gas

Alaska has 35 trillion cubic feet of natural gas ready to go to market from the Prudhoe Bay fields, gas that may be worth well over $150 billion. It is also expected that another 150 to 200 trillion cubic feet of conventional gas can be found under the ground and oceans of northern Alaska, gas that could spur petrochemical development and meet Alaska’s energy needs for decades into the future.  Thus it is vital that Alaska redouble its efforts to get that gas to market as quickly as possible, before alternative technologies or liquefied natural gas from elsewhere in the world fills the niche for Alaska’s gas in domestic markets.

In 2004 I helped win approval of an $18 billion federal loan guarantee (indexed to inflation) to help pay for the construction of a natural gas pipeline to move Alaska’s gas to market, plus three quarters of a billion dollars of tax subsidies to help defray the cost of installing the actual pipeline on Alaskan soil and of building a North Slope gas conditioning plant. In addition to expedited permitting and court reviews, we also established a Pipeline Coordinator to oversee construction of a pipeline, whether it is an overland route through Canada or an LNG export facility at the end of an All-Alaska gas pipeline project.

In 2007 we provided the Office of Pipeline Coordinator with greater flexibility to hire staff more quickly and gain funds to pay for oversight of the pipeline.

With these incentives and streamlining in place, I encourage the State, Legislature and the North Slope gas owners to do all they can to quickly reach agreement on a feasible project to get Alaska’s gas into the market as soon as possible. Given that the Federal Energy Regulatory Commission last year reported that there are more than 6,000 trillion cubic feet of gas available throughout the world ready for LNG conversion and sale, it is imperative that Alaska get our gas to market sooner rather than later, in order to compete against all those reserves worldwide.

UPDATE: Concerns about gas prices in Alaska

Many of you have contacted me to express concern about the fact that gas prices remain high in Alaska despite decreases in the price of oil.  I wanted to take this opportunity to explain my understanding as to why gasoline prices tend to be higher and decrease more slowly than in the Lower 48, despite the presence of crude oil and refineries in our State.

While it would seem that gasoline should be cheaper in Alaska since it is closer to the source of raw crude oil, the unfortunate fact is that Alaska’s three refineries do not enjoy the economies of scale that larger refineries in the Lower 48 do.  In other words, since Alaska’s refineries don’t produce enormous amounts of gasoline like Lower 48 refineries do, it isn’t as cost-effective to produce.  In addition, Alaskan wage rates are higher because of the higher cost of living, and shipping and construction costs are considerably higher than in the Lower 48.  Therefore, Alaskan refineries have never been able to sell refined gasoline as cheaply as in some other American locations. 

I understand the frustration of many Alaskans who pay higher fuel prices in a State that supplies America with 13 percent of its oil production.  Over the years, there have been several Alaska Attorney General and Federal Trade Commission investigations into allegations of price gouging nationwide.  To my knowledge, none of those investigations have ever uncovered evidence of price fixing or price gouging in the setting of Alaska fuel prices.  If prices do not begin to go down in Alaska soon, however, I plan to request that a new investigation be conducted to determine why gas prices in Alaska remain high when gas prices around the Nation are slowly decreasing.

Press Releases* Browse by: -- Month -- January February March April May June July August September October November December -- Year -- 2008 (17) November 2008 12th - MURKOWSKI WELCOMES NEW ASSESSMENT OF NORTH SLOPE METHANE  October 2008 16th - Murkowski welcomes increase in offshore oil and gas impact assistance for Alaska  September 2008 18th - SENATORS MURKOWSKI AND STEVENS AND REP. DON YOUNG ANNOUNCE $1.69 MILLION IN ENERGY AID TO ALASKANS  July 2008 23th - MURKOWSKI SAYS RATIFICATION OF LAW OF THE SEA TREATY IS BEST WAY TO PROTECT AMERICA’S ARCTIC INTERESTS  June 2008 18th - SENATOR MURKOWSKI JOINS PRESIDENT BUSH IN CALLING FOR OIL AND GAS PRODUCTION IN ANWR  03th - MURKOWSKI NOTES ENVIRONMENTAL PETITIONS SEEKING SUPPORT FOR CLIMATE CHANGE LEGISLATION  03th - MURKOWSKI URGES COOK INLET GAS PRODUCERS TO PROVIDE REASONABLY PRICED GAS FOR SOUTHCENTRAL UTILITIES  May 2008 16th - SENATOR MURKOWSKI WELCOMES BLM NPRA DESCISION  16th - SENATORS MURKOWSKI AND STEVENS URGE ANWR’S OPENING AT ENERGY FORUM  15th - SENATOR MURKOWSKI OPPOSES FARM BILL, SAYS MEASURE PROVIDES TOO MUCH AID FOR CORN-BASED ETHANOL  * Currently displaying the latest 10 records. Select a month and year from the Browse by select box to view more records.

Speeches* Browse by: -- Month -- January February March April May June July August September October November December -- Year -- 2005 (1) 2006 2007 2008 (7) May 2008 29th - Climate Change Conference   Alaska Municipal League UAA Housing 12th - Senator Murkowski's Floor Speech on the American Energy Production Act of 2008  07th - Executive Committee U.S. Oil & Gas Assn. Board of Directors  Hay Adams Hotel April 2008 29th - Higher Energy Taxes, ANWR One Solution  Senate Floor 24th - Global Marine Renewable Energy Conf. Ocean Renewable Energy Association  New York City * Currently displaying the latest 5 records. Select a month and year from the Browse by select box to view more records.

Op-Eds* Browse by: -- Month -- January February March April May June July August September October November December -- Year -- 2008 (2) October 2008 17th - Open the Outer Continental Shelf to energy exploration  July 2008 11th - Plow energy revenue windfall into renewables and power transmission systems  * Currently displaying the latest 5 records. Select a month and year from the Browse by select box to view more records.