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Sarah Palin on Energy & Oil

Republican Governor (AK); ; nominee for Vice President


Produce more of our own oil & gas, for national security

The stakes for our nation could not be higher. When a hurricane strikes in the Gulf of Mexico, this country should not be so dependent on imported oil that we are forced to draw from our Strategic Petroleum Reserve. And families cannot throw away more an more of their paychecks on gas and heating oil.

With Russia wanting to control a vital pipeline in the Caucasus, and to divide and intimidate our European allies by using energy as a weapon, we cannot leave ourselves at the mercy of foreign suppliers.

To confront the threat that Iran might seek to cut off nearly a fifth of world energy supplies ... or that terrorists might strike again at the Abqaiq facility in Saudi Arabia ... or that Venezuela might shut off its oil deliveries ... we Americans need to produce more of our own oil and gas.

And take it from a gal who knows the North Slope of Alaska: We've got lots of both.

Source: Speech at 2008 Republican National Convention Sep 3, 2008

Gas pipeline:history's largest private-sector infrastructure

I fought to bring about the largest private-sector infrastructure project in North American history. And when that deal was struck, we began a nearly $40 billion natural gas pipeline to help lead America to energy independence. That pipeline, when the last section is laid and its valves are opened, will lead America one step farther away from dependence on dangerous foreign powers that do not have our interests at heart.
Source: Speech at 2008 Republican National Convention Sep 3, 2008

More pipelines; more nukes; more coal; more alternatives

Our opponents say, again and again, that drilling will not solve all of America's energy problems--as if we all didn't know that already. But the fact that drilling won't solve every problem is no excuse to do nothing at all.

Starting in January, in a McCain-Palin administration, we're going to lay more pipelines ... build more nuclear plants ... create jobs with clean coal ... and move forward on solar, wind, geothermal and other alternative sources.

Source: Speech at 2008 Republican National Convention Sep 3, 2008

Claimed major triumph: $500 million subsidy for gas pipeline

Palin's intense pursuit of a pipeline to deliver natural gas from the North Slope of Alaska to market in the Lower 48 led to what her administration has claimed as a major triumph: the Legislature this summer approved her plan to give a $500 million subsidy to TransCanada, a Canadian company, to help build the project.

Rebuffing criticism of the pipeline subsidy, Ms. Palin has cast the pipeline as a way for Alaska to "end our dependence on foreign oil." She has said she hopes the pipeline effort will show that Alaska can contribute to a new energy economy, rather than be known as the state that receives more per capita federal spending than any other. Critics in the state complained that Palin undercut her clean-government image by appointing as her chief adviser on the pipeline a former lobbyist for TransCanada. The adviser, Marty Rutherford, her deputy commissioner of natural resources, earned about $40,000 lobbying the state government for a TransCanada subsidiary in 2003.

Source: New York Times, pp. A1 & A10, "An Outsider Who Charms" Aug 29, 2008

Global warming affects Alaska, but is not man-made

Q: What is your take on global warming and how is it affecting our country?

A: A changing environment will affect Alaska more than any other state, because of our location. I'm not one though who would attribute it to being man-made.

Source: Q&A with Newsmax.com's Mike Coppock Aug 29, 2008

Resource rebate: suspend AK 8-cent fuel tax for one year

I'm pleased to report to Alaskans that in early August, our Alaska Legislature agreed to approve a one-time resource rebate that returns part of our resource wealth to Alaskans --the owners in common of these resources. The rebate will be a direct payment of $1,200 to each Alaskan eligible for the 2008 Permanent Fund Dividend. The resource rebate was part of a larger energy package that also includes a 50% increase in the maximum loan amount for bulk fuel bridge and bulk fuel revolving loan funds to communities and cooperatives. Additionally, it suspends the state's 8-cent motor fuel tax on gasoline, marine fuel and aviation fuel for one year and strengthens the Power Cost Equalization Program.

Our lawmakers also included an additional $60 million for the Home Energy Rebate Program operated by the Alaska Housing Finance Corporation and $50 million in grant funds to the Renewable Energy Fund, bringing the total available for renewable energy projects in FY 2009 to $100 million.

Source: Alaska Governor's Office: August 2008 Newsletter Aug 20, 2008

Gasline Inducement Act: 1,715-mile natural gas pipeline

On Aug. 1, the legislature awarded TC Alaska the AGIA license to move forward and build Alaska's natural gas pipeline. The Legislature also authorized my administration to award the Alaska Gasline Inducement Act license to TransCanada Alaska to initiate development of a 1,715-mile natural gas pipeline from Prudhoe Bay on the North Slope to the Alberta Hub in Canada. Lawmakers also appropriated $35.5 million for gas pipeline expenditures.
Source: Alaska Governor's Office: August 2008 Newsletter Aug 20, 2008

Commercialize Alaska's North Slope natural gas

Governor Sarah Palin today signed Administrative Order 242, directing the state Department of Natural Resources and the Department of Revenue to work cooperatively with any organization or entity committed to commercializing Alaska's North Slope natural gas.

"This solidifies our commitment to facilitating an LNG project that is a product of market interest," Governor Palin said. "By committing both project capital and natural gas resources to a pipeline that would transport North Slope natural gas to tidewater, an LNG project can remain an integral element of the state's effort to deliver Alaska's gas to market."

Specifically, the Administrative Order instructs the two departments to provide specific kinds of support to those pursuing development of an economically and technically viable liquefied natural gas project. That support includes permitting coordination, fiscal and economic analysis, and facilitation of meetings with federal agencies.

Source: Alaska Governor's Office: press release, "Admin. Order 242" Aug 20, 2008

Appointed an Alaska oil and gas commissioner

[After serving as mayor], I was appointed an oil and gas commissioner in the state of Alaska, on the Alaska oil and gas conservation commission, had decided that there were changes, positive changes, that had to be ushered into our state government, decided to run for governor and did so, was successful, and here we are.
Source: Q&A with Time Magazine's Jay Newton Small Aug 14, 2008

To win, GOP must push energy independence

Q: What ideas do you have to gain back GOP majorities in Congress?

A: What the GOP has got to do, on a real practical level, between now and the election, is to convince Americans that it is our energy policy that is best for our nation and the nation's future, that if we are to become energy independent and if we are to become a more secure nation then we had better start supplying our very, very hungry markets across the nation with American supplies of energy. The GOP agenda to ramp up domestic supplies of energy is the only way that we are going to become energy independent, the only way that we are going to become a more secure nation.

And the GOP agenda is the right agenda in that respect, but the GOP is going to have to prove to Americans in following weeks that we can safely, responsibly and ethically develop these resources. That, of course, has been a problem for the GOP.

Source: Q&A with Time Magazine's Jay Newton Small Aug 14, 2008

Agrees with Obama on more Alaska oil & gas production

Gov. Sarah Palin today responded to the energy plan put forward by the presumptive Democratic nominee for President, Illinois Senator Barack Obama. "I am pleased to see Senator Obama acknowledge the huge potential Alaska's natural gas reserves represent in terms of clean energy and sound jobs," Governor Palin said.

In a speech given in Lansing, Michigan, Senator Obama called for the completion of the Alaska natural gas pipeline, stating, "Over the next five years, we should also lease more of the National Petroleum Reserve in Alaska for oil and gas production. And we should also tap more of our substantial natural gas reserves and work with the Canadian government to finally build the Alaska natural gas pipeline, delivering clean natural gas and creating good jobs in the process."

Gov. Palin said, "This is a tool that must be on the table to buy us time until our long-term energy plans can be put into place, and it is gratifying to see Senator Obama get on board."

Source: Alaska Governor's Office: press release, "Obama Energy Plan" Aug 4, 2008

Windfall oil profits tax prevents investment

Palin [supported Obama's energy proposal but] questioned the means to pay for Obama's proposed rebate--a windfall profits tax on oil companies. In Alaska, the state's resource valuation system, ACES, provides strong incentives for companies to re-invest their profits in new production.

"Windfall profits taxes alone prevent additional investment in domestic production. Without new supplies from American reserves, our dependency and addiction to foreign sources of oil will continue," Palin said.

Source: Alaska Governor's Office: press release, "Obama Energy Plan" Aug 4, 2008

Lift moratorium on offshore drilling

Q: The Congress is going to take their summer recess without a vote on rolling back the moratorium on drilling on shore and off shore. Nothing on ANWR, nothing on shale, nothing on the Outer Continental Shelf. What's your reaction to this?

A: Well, it's pretty pathetic, that action that they've taken. Appreciate the president's call to lift the moratorium. Appreciate the president's call to drill in ANWR, to do all those things for American production opportunities.

Source: CNBC "Kudlow & Company" Interview Jul 31, 2008

Convinced McCain to drill offshore; not yet on drilling ANWR

Q: When we talked about a month ago, you told me you were going to persuade Senator McCain to drill in ANWR. Now actually, McCain's come a long way on drilling Outer Continental Shelf. Have you yet talked him in to ANWR?

A: I have not talked him in to ANWR yet. But yeah, he has evolved into being open enough to say yes to that offshore. Obama certainly hasn't gone there. We certainly need this. We need it for American security, & for energy independence.

Source: CNBC "Kudlow & Company" Interview Jul 31, 2008

Exxon-Mobil should pay $507 million for Exxon Valdez spill

Gov. Palin today encouraged Exxon Mobil to pay the $507 million in punitive damages plus interest awarded by the US Supreme Court to 32,000 plaintiffs in the 1989 Exxon Valdez oil spill lawsuit. "These people have suffered long enough," Gov. Palin said. "While Exxon may have the ability to delay payments, I strongly encourage them to bring this sad chapter in our history to a long-overdue conclusion. It is time to end the misery so everyone can move on."

The Governor is hopeful plaintiffs will receive payments this fall. So far, though, Exxon has not indicated whether it will cut checks to plaintiffs right away, or seek further reductions in the award as the case goes back to the lower courts.

Source: Alaska Governor's Office: Press release 08-106, "Exxon" Jul 1, 2008

Unlock ANWR; we're ready, willing and able to contribute

Q: The governor of Alaska sent a letter to Senate Leader Harry Reid with a very clear demand--drill in ANWR now. Governor Sarah Palin is on the phone right now. Governor, I'm curious how you were received today, when so many of your constituents, I would assume, want to protect the land, not drill. How did it go today?

A: I'll correct you there with all due respect--the people of Alaska understand that Alaska has so much to contribute in terms of energy sources to the rest of the US. Folks up here want ANWR to be unlocked by the federal government so that we can drill. We've got a tremendous amount of resource up here, and we're ready, willing and able to contribute. I think Washington doesn't understand that we're at a real critical crossroads: We are either going to become more and more dependent on foreign sources of energy, or we're going to be able to secure our nation and drill domestically for safe, stable, clean supplies of energy that we have here. We have them in Alaska.

Source: Fox News Channel "Your World" with Neil Cavuto Jun 27, 2008

Energy relief plan: $100 per person monthly, for oil & gas

Returning surplus funds through grants to electric utilities will result in a 60% reduction for all ratepayers. The benefit will flow to homeowners, renters, schools, governments and businesses.

In addition, there will be conservation incentives for the utilities. For every 1% reduction in 2008 kilowatt hour sales from 2007 sales, the state will make a year-end contribution for capital energy projects to the utility.

The Energy Debit Card will go out to every qualifying [Alaska resident]. The benefit will be $100 per month per recipient. The temporary Energy Debit Card can be used for purchases from Alaska energy vendors, such as heating oil distributors, natural gas utilities, electric utilities, gas stations & other retail fueling stations.

The value of this plan is approximately $1.2 billion. The grant to electric utilities is expected to be $475 million, while the Energy Debit Card totals are forecast to be $729 million. The Governor has proposed this energy relief plan for one year.

Source: Alaska Governor's Office: Press release 08-074 "Energy Plan" May 15, 2008

Bush is right: drill ANWR & develop our own supplies

Gov. Sarah Palin released the following statement after Pres. Bush renewed his call to open the Arctic National Wildlife Refuge for oil exploration in the face of surging gasoline prices: "Pres. Bush is right. Across the nation, communities are feeling the pinch of high energy costs. It is absurd that we are borrowing from one foreign country to buy oil from another. It is a threat to our national security and economic well-being. It is well past time for America to develop our own supplies."
Source: Alaska Governor's Office: Press release 8-068, "ANWR" Apr 29, 2008

Fully fund for the Petroleum Systems Integrity Office

Governor Sarah Palin today strongly urged lawmakers to restore critical funding for the Petroleum Systems Integrity Office (PSIO), which exercises oversight of the maintenance of facilities, equipment and infrastructure for sustained production and transportation of oil and natural gas resources in Alaska.

"I'm disappointed that House Finance subcommittee members removed $523,000 in funding for PSIO from my budget. Facing the prospect of the largest construction project in North America, a natural gas pipeline, we must demonstrate to Alaskans and the nation that we provide sound oversight of the systems that are needed to develop our resources. I am hopeful the full Finance Committee will restore funding for critical PSIO positions needed to accomplish this mission." The money would fund personnel for investigation of system integrity breaches and implementation of a statewide quality assurance program.

Source: Alaska Governor's Office: press release, "Funding Restored" Feb 25, 2008

$250M for proven alternative energy, including wind & hydro

We need a comprehensive approach to long-term energy plans, not just fiscal "shots-in-the-arm." I'm appointing an Energy Coordinator, to activate a statewide Energy Plan. We'll use earnings from a $250 million "Renewable Energy Fund" for alternative projects, like hydro, wind, geothermal, and biomass. These projects cannot even flirt with snake-oil science--they will be real, doable, and economic. Alaska's plan can lead America toward energy security and a cleaner, safer world.
Source: State of the State Address to the 25th Alaska Legislature Jan 15, 2008

Gas pipelines are approved if they meet Alaska's needs

An example of our self-determination is our natural gas pipeline vehicle: AGIA. AGIA's competitive process is built on Alaska's "must-haves." Finally we will have an "open access" gasline so new explorers can produce new reserves, providing in-state use of our gas and careers for Alaskans. Without AGIA's requirements, we'd be leveraged by a small group of companies. We can't surrender revenue, judicial process and our sovereignty. A respected pipeline construction company, TransCanada, submitted a proposal that meets all of Alaska's requirements. AGIA cleared the path for our gas to feed hungry local markets and to help secure the country with a safe, stable, and domestic supply of clean energy. An AGIA license gets the ball rolling on our terms--and opens the door to innovative and strategic partnerships. We are reasonable and open to those partnerships that, at the end of the day, will get that long-awaited gas line built.
Source: State of the State Address to the 25th Alaska Legislature Jan 15, 2008

National energy policy not an either/or proposition

Gov. Palin yesterday sent a letter to Senators and the Bush Administration advocating defeat of a bill that would prohibit oil and natural gas development in the Arctic National Wildlife Refuge.

The legislation, sponsored by Sen. Joe Leiberman (I-CT), aims to designate ANWR as wilderness. Palin criticized the bill as it would effectively ban oil and gas exploration in the most promising unexplored regions in North America--the coastal plain of ANWR. In the letter, Gov. Palin states that national energ policy must include a variety of resources:

"I don't see national energy policy as an either/or proposition," said Gov. Palin. "Rather, we need to develop secure domestic sources of conventional energy, such as oil & natural gas, while also researching and developing alternative and renewable energy."

Gov. Palin reminded senators that opening ANWR to oil and gas exploration would reduce US dependence on foreign sources of oil, increase federal revenues and create hundreds of thousands of jobs.

Source: Letter to members of the U.S. Senate & Pres. Bush Nov 10, 2007

Fund cellulosic biofuel research in Farm Bill

We urge you to allocate the maximum feasible level of funding for the programs in Title IX in the 2007 Farm Bill. If the nation is to pursue energy independence, we must look beyond traditional biofuels production. Governors urge Congress to include a strong energy title as part of the Farm Bill that provides technical and financial assistance to expand the use of farm and forest biomass for renewable energy production.

Local production of renewable biomass energy benefits the national economy, promotes national and regional energy security and stimulates the rural economy through the creation of high quality jobs. Encouraging such production will require increased federal investment in programs that support cellulosic biofuels research, increased biodiesel production and use, increases in wind and solar energy and energy from animal wastes, improvements in energy efficiency, bio-based product development, effective carbon storage, and other renewable technologies.

Source: Letter from two governors to Senate Committee on Agriculture Oct 30, 2007

Submitted legislation to build natural AGIA gas pipeline

Governor Palin submitted the Alaska Gasline Inducement Act (AGIA) to the Legislature on her 89th day in office. The legislation will act as a vehicle to get a natural gas pipeline built and bring the state's substantial gas reserves to market. The AGIA offers a number of inducements for those who hold gas leases and for those who want to build the line. In return, the state will provide a matching capital contribution and insist on the state's must-haves: project benchmarks, gas for Alaskans, expansion capabilities, and jobs for Alaskans. The state is committed to ensuring that Alaskans will be trained and ready to build the gasline. Governor Palin recently traveled to Washington D.C., where she received encouragement for the AGIA from Alaska's Congressional Delegation, FERC officials and members of the Bush Administration.
Source: Alaska Governor's Office: press release, "100th Day" Mar 13, 2007

Stranded Gas Development Act no longer applies

My Administration will pursue the gasline plan that is best for ALL Alaskans. How do we get there? Through a two-step process. First, we acknowledge that the Stranded Gas Development Act (SGDA), under which the previous Administration negotiated with the "Big Three" producers (ExxonMobil, ConocoPhillips, and BP), no longer applies. The Legislature's own experts have testified that the gas can no longer be deemed "stranded" due to long-term economic conditions.
Source: Campaign website, www.palinforgovernor.com, "Issues" Nov 7, 2006

Get ANWR open

I believe in protecting Alaska's environment through fair enforcement of our environmental laws. Having a clean record on environmental regulation is critical to getting ANWR open and maintaining our fisheries mining, timber, and tourism industries. I would also revisit the change in regulations on the Alaska Coastal Zone Management program in which the past administration by eliminating the rights of local districts to write specific local enforceable policies on important issues like subsistence.
Source: Campaign website, www.palinforgovernor.com, "Issues" Nov 7, 2006

Chaired the Alaska Oil and Gas Conservation Commission

Source: Palin-Parnell campaign booklet: New Energy for Alaska Nov 3, 2006

Pursue gasline plan that is best for ALL Alaskans

My Administration will pursue the gasline plan that is best for ALL Alaskans. All qualified & viable proposals & applicants will be considered. How do we get there? First, we acknowledge that the Stranded Gas Development Act (SGDA) no longer applies. The producers want to amend the SGDA to fit their proposed contract within the technical confines of that law. However, the Legislature's own experts have testified that the gas can no longer be deemed "stranded" due to long-term economic conditions.
Source: Palin-Parnell campaign booklet: New Energy for Alaska Nov 3, 2006

Met with producers and employee groups for pipeline deal

Q: Will you limit your negotiations on the gas pipeline to the producers or will you reopen discussions with others?

KNOWLES: I would look to all of the proposals to see what is the best deal for Alaska. The next governor is going to have to sit down with Alaska business leaders, members of the oil and gas industry and others to negotiate an Alaska gas line on Alaska's terms. Sarah has refused to meet with the executives and employees of ConocoPhillips, BP, Alyeska, with the regional CEOs of the Native corporations. I believe that we cannot afford to have a governor who is AWOL. You cannot delegate leadership.

PALIN: That is an untruthful statement. I've met with Exxon; with ConocoPhillips; with the BP employee group. So, that's not true.

PALIN: That is an untruthful statement. I've met with Exxon. I've met with ConocoPhillips. I've met with the BP employee group and the ConocoPhillips folks. Heck, I have the endorsement of the North Slope union hands up there.

Source: Alaska 2006 Governor Debate: at Anchorage Rotary Oct 31, 2006

Firm start date as part of gasline incentive offer

Q: Do you believe the state should demand a firm construction start date for a gas line, despite the uncertainties of construction costs, permits and financing?

A: Yes. If the state is going to offer incentives--and award them to a specific proposal--it is reasonable to expect a firm start date. Otherwise, other proposals need to be given the opportunity to begin construction.

Source: Anchorage Daily News: 2006 gubernatorial candidate profile Oct 22, 2006

Opposes natural gas reserves tax--it's not earned income yet

Q: Do you support the natural gas reserves tax on the Nov. 7 ballot? If it passed, how would that affect your negotiations with the producers on a gas pipeline?

A: I am opposed. This initiative is akin to taxing income before it is even earned. The way to get an agreement on building a pipeline is to negotiate . not litigate.

Q: Do you support the Petroleum Profits Tax passed by the Legislature and signed into law by Gov. Murkowski? If no, why not?

A: My preference was a tax on the gross price with a price-progressive index. We need to see how companies apply the tax credits within the law. If the credits are abused and Alaska is shortchanged, changes will be proposed. The intent of the credits is to encourage new exploration and infrastructure development.

Source: Anchorage Daily News: 2006 gubernatorial candidate profile Oct 22, 2006

Analyze potential costs associated with climate change

Q: What role does state government have, if any, in addressing global warming and climate change?

A: We need to analyze the potential economic costs, needs and opportunities associated with climate change. Let's be cautious in how we react--to make sure we don't overreact. The Alaska Climate Impact Assessment Commission is supposed to assess the situation and issue a report on March 1, 2007. This is a good start.

Source: Anchorage Daily News: 2006 gubernatorial candidate profile Oct 22, 2006

Other governors on Energy & Oil: Sarah Palin on other issues:
AK Sarah Palin
AL Bob Riley
AR Mike Bebee
AZ Janet Napolitano
CA Arnold Schwarzenegger
CO Bill Ritter
CT Jodi Rell
*DE Ruth Ann Minner
FL Charlie Crist
GA Sonny Perdue
HI Linda Lingle
IA Chet Culver
ID Butch Otter
IL Rod Blagojevich
*IN Mitch Daniels
KS Kathleen Sebelius
KY Steve Beshear
LA Bobby Jindal
MA Deval Patrick
MD Martin O`Malley
ME John Baldacci
MI Jennifer Granholm
MN Tim Pawlenty
*MO Matt Blunt
MS Haley Barbour
*MT Brian Schweitzer
*NC Mike Easley
*ND John Hoeven
NE Dave Heineman
*NH John Lynch
NJ Jon Corzine
NM Bill Richardson
NV Jim Gibbons
NY David Paterson
OH Ted Strickland
OK Brad Henry
OR Ted Kulongoski
PA Ed Rendell
RI Don Carcieri
SC Mark Sanford
SD Mike Rounds
TN Phil Bredesen
TX Rick Perry
*UT Jon Huntsman
VA Tim Kaine
*VT Jim Douglas
*WA Christine Gregoire
WI Jim Doyle
*WV Joe Manchin III
WY Dave Freudenthal
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* indicates election in 2008. See Governor's List for challengers.

Page last updated: Sep 26, 2008