Friday, July 4, 2008

Cold War Brewing?

Jim Whitaker, Mayor of the Fairbanks North Star Borough sent this letter to the State Attorney General Talis Colberg. (Thanks to Andrew Halcro for posting the letter).

Sadly this is the shape of things to come - The high cost of energy will not go away in our lifetimes. The anti business political climate prevents folks from coming together to solve problems.

Instead people are divided by unreal expectations of free heat in the Arctic. You can't heat your home with lawsuits.

Perhaps the Mayor should draft a note to the various producers and ask for real world solutions with real world cost estimates so the citizens of the Fairbanks North Star Borough can have some sort of idea of what their cost of living will be 5, 10, 20 years down the road.

The U.S. average cost of residential natural gas is $14.30 per MSCF (per Energy Information Administration). When the Alaska Gas Pipeline gets built and starts flowing the cost will be much more than that. It's an ugly problem that will take some leadership and know how to solve in the near term and long term.

Good luck with the lawsuit approach.

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