Speech: Alaska Support Industry Alliance

Thank you, Tom Hendricks. Happy New Year! It's a great day to be an Alaskan, isn't it? And it's certainly great to be here -- with you -- at Alaska Support Industry Alliance. This is the way to start the year!

First, in case there's any doubt, I want to make something very clear: Alaska is open for business.

And you are in the business to do what Alaskans have done from the beginning: Maximize opportunity. Develop private enterprise.

Every day you accomplish what no government can do:

You generate an authentic GDP. And I don't mean "Government Dependent Programs." I mean an honest-to-goodness Alaska GDP based on free enterprise.

You make that happen every day. And I applaud you for that!

Today's newspapers let us know we've had the third straight year of job growth in Alaska. And yesterday we saw further evidence that others are taking notice that Alaskans will work together to grow our economy. Three CEOs from major oil companies met here in Alaska to talk about a gas line, to talk about alignment. It was the first time these three CEOs have been together in Alaska. Our discussions were very productive, and I was very encouraged.

So make no mistake: In 2012, my administration will not yield in our effort to directly address the most pressing economic issue facing our state -- the decline of oil coming through the Trans Alaska Pipeline System. TAPS production is an economic survival issue for Alaska.

During the transition over a year ago, we sat down, talked with business and community leaders across the state, and we heard their concerns. We carefully listened to these ideas.

Then we developed a plan to get back to one million barrels a day through the pipeline. We're now working that plan hard.

Let me give you an update on some of what we've done this past year:

We said we were going to put more oil leases up for sale. We did so in December, during the annual lease sales.

We said we were going to challenge federal foot-dragging, and we do so at every turn. Alaska's voice has rung loud and clear.

Finally, we are seeing Washington loosen its death-grip on the NPR-A and OCS.

To be sure, progress is slower than we'd like, and some of Washington's decisions in this regard have been disingenuous. But there has been change; we're thankful for it, and we're going to keep on fighting.

We said we'd take the case for off-shore exploration and development to the American people, and we did so.

We've appeared at forums all over this country to talk to Americans about how developing domestic energy will grow jobs and help turn our economy around.

We will continue to let America know that Alaska is a key to our nation's energy security.

Here are some things we have ahead of us:

- We will restructure our oil tax system to increase production.

- We will reach the One Million Barrels Per Day in 10 years.

- We will get a gas line.

- We will build roads to resources, and you'll note in my 2013 budget we have funds for a road to Umiat and the Ambler District.

- We will continue to make the case for a vibrant, business climate and a growing economy as we move into the second session of the 27th Alaska Legislature.

- And we'll continue throughout 2012. We will continue to put America's energy and security into the national conversation. Around dinner tables. On the platform of every presidential candidate, as we've done. By November, they'll know these acronyms: ANWR, NPR-A, and Arctic OCS!!

I want to personally thank and specifically compliment everyone involved with the Alaska Support Industry Alliance, AOGA, the State Chamber, the Alaska Council of Producers, ANCSA corporations, the RDC -- all of you in this room -- business leaders and community leaders -- for your efforts to educate Alaskans about what fuels this state's economy.

I recognize that many Alaskans have their shoulder to the wheel on this effort to ramp up production on the North Slope.

Here's the good news: Alaska's business environment is getting better. Indeed, yesterday it was announced that our state bond rating was upgraded to AAA. In this world economy, think about what that means.

We see more and more Alaskans understand the complexities of the oil trade -- our state's bread and butter -- and the scope of the production investment challenge.

In just a few days, the Legislature will gavel in. My priority? Alaskans' economic opportunity.

We'll spend less and save more than some legislators want. You'll have noticed my proposed budget is leaner than last year. Many of our key markets are experiencing challenges. Europe is in a heap of trouble. The global financial crisis will impact us.

And we will be ready. Because we're focused on spending less and saving more for the future.

As with the major investment we made in Susitna-Watana last session, you'll see infrastructure investment. We're investing where the state can get the biggest bang for its buck.

That means Roads to Resources. Transportation infrastructure. Maintenance of public facilities.

And a $350 million bond package I propose putting before Alaska voters to upgrade ports in communities from Ketchikan to Anchorage to Emmonak.

Now I know your meeting theme has to do with the roller coaster of our natural resources economy, and you have a host of great speakers and thought leaders coming up on today's agenda.

I have no doubt that they'll caution us about the uncertain times ahead. The global picture isn't encouraging.

But let's not ignore the very good reality here: Alaska's economy is built on the solid ground of resources. And remember some recent good news:

- The federal agency approval for CD-5, which will mean a bridge over the Colville River that allows access to leases within the National Petroleum Reserve-Alaska.

- We can thank Senator Lisa Murkowski for her bill to move permitting under the Clean Air Act from EPA to Interior, with respect to OCS oil and gas related activities.

- We've got a great turn-around story in Cook Inlet, with new players coming in.

- LNG shipments have continued from Nikiski, in response to a changing market around the Pacific Rim.

- We're seeing more exploration on the North Slope than we have for a few years.

- Mining -- now there's a strong trend for 2012! Red Dog, Greens Creek, Usibelli -- all accounting for massive increases in our exports.

- Donlin is closer to production, and numerous other mines of all sizes are in advanced stages of development.

- Friends, according to the Alaska Miners Association, one third of all mining exploration in the U.S. is happening in Alaska. And last year exploration in Alaska topped $260 million.

- We're launching our state's rare earth element mining sector.

- Then there's Susitna-Watana, massive amounts of hydro power that will lower the cost of doing business all across the Railbelt, and grow jobs during the construction phase.

So, we can legitimately start off 2012 with optimism. Things are improving.

To be sure, there's work ahead. For those of us who believe economic stagnation is unacceptable. For those who believe economic growth is essential to our state, you can take this to the bank:

I will be relentless in growing Alaskan opportunity through private enterprise.

I will doggedly pursue Alaskan economic growth, and I will be here for you, and for Alaska.

Thank you. Have a great day, and an even better year.

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