China bids 18.5 billion for Unocal and Alaska's Oil

Think ahead! China enjoys a beneficial trade relationship with us. In the long run that has to be beneficial to the economy and to our long term relationship. Much of Alaska's oil ships to Asia as it is. It makes sense for China to seek ownership in the production. It is in their long-term vital and strategic interest. What does not make sense, however, is allowing anyone to secure a strategic, vital interest in a vulnerable US territory, such as Alaska, or for that matter our vital resources, of oil and gas. I fear that we cannot leave it to the peaceful benevolence of the multinational producers and shippers of crude oil to insure our own vital interests.

Were we, at some future date, to find our access to imported oil jeopardized, or for some other reason, find it necessary to rely on our own domestic gas, nuclear, coal and oil exclusively, we might find China unwilling to give up her vital interest in Alaska oil. If those vital interests were to be threatened, they might be tempted to act.

If China controls the production of Alaska oil and gas, one might expect them to transport the product exclusively to China at the expense of its intended free trade market destinations at the expense of Korea, Japan and the US. The consideration of that probability must be made now, not after the fact!

This may indeed be an opportunity to "think globally and act locally." Might Alaska with strong rational leadership, not make the decision to develop Alaska oil and gas ourselves for domestic use only --- to the US, reserving an abundant low cost energy supply for Alaskans? Think of the economic development that might result from offering all of the airlines low cost JetA, when refueling in Alaska, and all of Alaskans low cost fuel.

If Unocal cannot afford to develop Alaska oil and gas, might not the State of Alaska form a partnership, working interest or outright takeover, giving us greater control of the profit as well as the distribution? Isolation is a powerful strategy. The federal government may not be willing or able to exercise such a strategy but Alaska can, quite rationally, as a measure of economic development. Private developement may be more efficient than government control, but here private revenue goes outside. We get a cut but maybe not a fair one. We need the revenue, the jobs and the control! We have a governor who opened a snowmobile trail personally with park rangers shooting at him, (not really) he surely has the guts to muscle the energy issue. Who knows, Alaska might show George the way.