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The 44-year-old governor embodies a growing anti-oil sentiment among Alaskans frustrated by the industry's lack of progress in building a natural-gas pipeline. She's enjoyed some of the highest approval ratings of any governor in the country since taking office in December 2006, with some grass-roots Republicans suggesting her as running mate for presidential candidate John McCain.

Yet, her dealings with Big Oil sometimes seem utterly un-Republican. Palin may not command an army to seize the people's oil fields like Hugo Chávez does, but that hasn't stopped her administration from trying to revoke lucrative leases at one giant oil and gas reservoir, alleging Exxon and its partners have dragged their feet for decades to develop it.

Her rhetoric can be blunt, too. Displaying no love for Exxon (a popular punching bag for Alaskans still irked over the 1989 Exxon Valdez oil tanker spill), Palin recently scolded the company for not showing enough interest in the natural-gas pipe dream. "The sentiment shared by a lot of Alaskans," she told reporters at a news conference, "is that Exxon, 'Don't let the door hit you in the stern on the way out if you choose not to participate in progressing development of Alaska's resources'."

Exxon has invested more than $20 billion in Alaska, including in new oil wells, and the company holds the largest working interest at Prudhoe Bay, the biggest U.S. oil field, says Margaret Ross, an Exxon spokeswoman. "It would be inappropriate to comment on a statement made by the governor," she said.

Getting [Alaska's] resources to market is of increasing concern to the state. High oil prices are enriching Alaska beyond the imagination—if oil averages $120 a barrel over the next fiscal year, the state will collect an astounding $12.6 billion, the Alaska Revenue Department says. But one crude reality remains: the reserves are drying up.

Alaska depends on oil taxes and fees to fund 90 percent of its budget revenue (residents pay no income tax; a $39 billion oil-wealth savings account generates an annual dividend for Alaskans, with last year $1,654 going to every man, woman and child). The oil fields produced about 740,000 barrels last year, down from a peak of 2 million in 1988. It's not that there isn't more oil to be found, it's that the best prospects—ANWR and the Arctic Ocean—face unrelenting opposition from environmentalists. The recent Interior Department decision to list polar bears threatened will almost certainly spawn lawsuits to try to block the search for crude in the bear's Arctic habitat.

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Member Comments

  • Posted By: desh @ 09/09/2008 2:30:02 PM

    "Comment: Everyone wants to be "cured" of our oil addiction. We want to be able to hunt polar bears on the ice cap, not on bare ground. We don't want to see the beautiful Polynesian islands sinking under the waves. With the population set to double in the next few decades, there is only one question for the radical environmetalists:

    What is the alternative fuel and can we have it by 3:00 P.M. today? If there are none, then start working with the energy companies to find a way to clean up the fuel we need today and look for that special "clean fuel" you are so adament about, tomorrow. Every time you put in a law suit, you stop the "clean fuel" process 10 fold. "

    That clean full is hear like Europe's massive ocean wind farms, Spains sun towers, or plain old wind turbins.
    If everyone stop complain about how ugly they are you would wonder why don't they put one up in mine, i would like that check every month for a thousand or so for sitting on my fat a** and watching the wind blow. if we took even part of the roughly 1 trillion dollars we spend to other counties (mostly the ery one on our terror list for sponcerinf terrist that kill us in iraq) we could wuild massive farms that would power all major city and go from there and be done in less time than it takes to build new drill sites, which takes at best 10 years to start production, ya that sounds like a quick fix?

  • Posted By: delfairchild @ 06/12/2008 12:32:11 PM

    Everyone wants to be "cured" of our oil addiction. We want to be able to hunt polar bears on the ice cap, not on bare ground. We don't want to see the beautiful Polynesian islands sinking under the waves. With the population set to double in the next few decades, there is only one question for the radical environmetalists:

    What is the alternative fuel and can we have it by 3:00 P.M. today? If there are none, then start working with the energy companies to find a way to clean up the fuel we need today and look for that special "clean fuel" you are so adament about, tomorrow. Every time you put in a law suit, you stop the "clean fuel" process 10 fold.

  • Posted By: firstmental @ 06/09/2008 9:33:29 AM

    Its funny - we're a two continent family, and we just bought a new (our third) Chevrolet Aveo (or Kalos, since its sold under its original Daewoo name in Italy). It is LP gas powered, and CHEAP to fill and run! So why only over there?
    And BTW, its our BIG car! The Chevy Matiz which is our small car, would be great in cities here.

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