Mark Brandon is the Managing Partner of First Sustainable (http://www.firstsustainable.com), a registered investment advisory catering to socially responsible investors. In addition to Socially Responsible Investing (SRI), he may opine on social venturing, microfinance, community investing, clean technology commercialization, sustainability public policy, green products, and, on occasion, University of Texas Longhorn sports.

Tuesday, December 20, 2005

Alaska sues Exxon, BP over natural gas
Lawsuit alleges the two oil giants restrict supplies, keeping prices artificially high.

I am no defender of the oil companies, but Fortune did a terrible job reporting the complexities of this story. The oil companies are not the bad guys here.

Just about every state and municipal entity in Alaska wants to build a giant pipeline that traverses the state from the gas fields in the north down to the Canadian pipelines in the south. The federal government has already earmarked $20 billion for the project, thanks to the same congressman who chairs the energy committee and got approval for the now infamous "bridge to nowhere". It will surely provide lots of jobs and pad lots of pockets for our northern countrymen.

The problem is that the pipeline is not the best way to get the natural gas to the lower 48. Not even close. Private interests are proposing to build an undersea pipeline from the northern Alaskan ports to Canadian ports. The private Canadian proposal is much less expensive, much shorter, and most importantly, not nearly as destructive to the environment. Undersea pipelines rarely rupture, while overland pipelines rupture all the time. The great Alaskan oil pipeline is constantly springing leaks. Economically, shipping the gas will be cheaper for the energy companies, so it is no wonder that they would like to obstruct the Alaskan project in favor of the Canadians. Of course, the Canadian project will not get built if a massively subsidized competitor takes all the gas. The Canadian project is cleaner, cheaper, less destructive, and requires no federal money. Moreover, the end user's price will be higher using the Alaska scenario. How much more evidence do they need?

Fortune should recognize this lawsuit for what it is -- a cynical ploy by the Alaskans to embarrass the oil companies into complicity at a time when they are already universally reviled. Meanwhile, Alaskan governments deserve the "piggy" award in this case.

4 Comments:

Blogger Rachel said...


investment planning
Investment Securities - Basics of Trust Deed Investing
Want to start securities investing in Trust Deeds - but don't know how to get started?

If you need to secure your retirement, a stock that doesn't return (or downright plunges) can be your worst nightmare. When your money is tied up and not even keeping up with the basic interest rate your savings account would provide you need a change.

Trust deed investors, on the other hand, make money on interest every month. And as high as 10%, outperforming even your best IRA. You can earn 5 times more retirement income than your average savings account can provide with Trust Deed Investment Securities investment planning

11:58 AM

 
Anonymous CreditThinker said...

Politicians are so tightly connected with oil magnats that it is always hard to decide who the bad guys are.

1:05 AM

 
Blogger DiSCo said...

Really trustworthy blog. Please keep updating with great posts like this one. I have booked marked your site and am about to email it

to a few friends of mine that I know would enjoy reading..
seslisohbet
seslichat
sesli sohbet
sesli chat
sesli
sesli site
görünlütü sohbet
görüntülü chat
kameralı sohbet
kameralı chat
sesli sohbet siteleri
sesli chat siteleri
görüntülü sohbet siteleri
görüntülü chat siteleri
kameralı sohbet siteleri
canlı sohbet
sesli muhabbet
görüntülü muhabbet
kameralı muhabbet
seslidunya
seslisehir
sesli sex

10:27 AM

 
Blogger Sesli Chat said...

Really trustworthy blog. Please keep updating with great posts like this one. I have booked marked your site and am about to email it

to a few friends of mine that I know would enjoy reading..
seslisohbet
seslichat
sesli sohbet
sesli chat
sesli
sesli site
görünlütü sohbet
görüntülü chat
kameralı sohbet
kameralı chat
sesli sohbet siteleri
sesli chat siteleri
sesli muhabbet siteleri
görüntülü sohbet siteleri
görüntülü chat siteleri
görüntülü muhabbet siteleri
kameralı sohbet siteleri
kameralı chat siteleri
kameralı muhabbet siteleri
canlı sohbet
sesli muhabbet
görüntülü muhabbet
kameralı muhabbet
birsesver
birses
seslidunya
seslisehir
sesli sex

6:41 AM

 

Post a Comment

Links to this post:

Create a Link

<< Home