Alaska has upheld the promise of statehood, and Gov. Walker aims to build on that foundation

We Alaskans have never had more opportunity than we have today. We do because we're lucky, and because our governor has done what he said he would do. He has put Alaska first. We should all think about what that means.

Let's start at the beginning. Alaska statehood is premised on the notion that our only means of economic stability and sustainability is resource development. Even though our population is small, our geography is large and richly endowed with abundant natural resources. Fishing, mining, tourism and oil, especially oil, have made us wealthy. We have roads, ports, airports, communication systems, public safety, and an education system. While some of us pay property taxes, none of us pays the full cost for what we receive, and for years we have each received a cash dividend just because we live here. If Alaska were a corporation and we paid to buy shares, it would probably be the best investment we have ever made, but we didn't have to buy shares, we live here and because we do, we get the benefit of the value of the promise of statehood … and then some.

We're lucky, the promise of statehood has been upheld: Economic stability and sustainability (which evolved to prosperity and opportunity) has been realized. It has because we Alaskans, for the most part, have been good stewards and we Alaskans, for the most part, have elected leaders who have understood that Alaska's interests must be put first; Egan, Hammond, and Hickel quickly come to mind. But, as they all understood, it was necessary to pull Alaska into a first position. If left to other interests Alaska would always be in a second or third position. Gov. Walker is cut from the same cloth as Egan, Hammond and Hickel.  Walker, if nothing else, is an "Alaska First" guy and has never hesitated to demonstrate the backbone and intellect to strategically place Alaska's interests first and foremost. Two examples of his "Alaska First" approach come to mind:  1) cutting the PFD, and 2) putting together a gas pipeline project that is probably going to be built.

['I don't second-guess a lot of what I do:' Alaska Gov. Bill Walker eyes his fourth legislative session]

Let's deal with cutting the dividend first. Messing with the dividend formula has been the so-called "third rail" of Alaska politics since the inception of the Permanent Fund. In other words to reduce the dividend has been perceived as a quick way to end a political career. But, given a choice between his political future and Alaska's future, he put Alaska first. He has proven that he thinks funding Alaska's schools, roads, university, airports, public safety, and much more are more important than his political career. He knows that Alaska cannot sustain a budget out of balance and maintain a trajectory that fulfills the promise of statehood: prosperity and opportunity. And so, he has strategically cut the state budget while still maintaining roads and airports, keeping the school and university systems valid, and improving public safety.

But he also had to cut the dividend to Alaskans in order to provide the Legislature the political cover to take the action necessary to finish the job and balance Alaska's budget. He even went further, he proposed balanced budgets; "written in pencil," he said; and gave the Legislature the leeway to erase and change the budget, so long as it was sustainably balanced. He put Alaska first. The Legislature did not. They put their political careers first; shame on them.

Now to the probability of a major gas pipeline finally being built. Remember that the promise of statehood, prosperity and opportunity, is premised on the notion that our resources must be developed; no other resource development opportunity compares to the magnitude of natural gas development. When Walker took office the gas line effort was being lead by ExxonMobil, a truly great American/international corporation. They are successful and I'm glad; I own a small amount of their stock. As a shareholder I know that they have a legal responsibility to put the interests of their shareholders first. ConocoPhillips and BP also have the same legal obligation to put the interest of their shareholders first. So if major oil companies Exxon, BP and ConocoPhillips are the project leaders and they have other competing efforts around the world to provide liquefied natural gas to existing and emerging markets, who gets put first? It's sure as hell not Alaska.

By the way, all three of the majors have competing projects around the world: Papua New Guinea, Russia, Qatar, the U.S. Gulf Coast (Exxon), Trinidad, Australia, Indonesia, West Africa, U.S. Gulf Coast (BP), Australia, Qatar, East Timor, U.S. Gulf Coast (ConocoPhillips). We Alaskans should also understand that the governments of Russia, Qatar, Papua New Guinea, etc., and the land owners in Texas and Oklahoma are not the least bit patient about development. When they lease oil and gas properties, time limits for development are clearly defined, and if not timely developed the leases are taken back and made available to others who will develop them. We should also be aware that almost all foreign governments directly invest in the development of their oil and gas resources.

[Some big Alaska problems barely touched as Walker enters the final year of his term]

So the comparative dynamics are not all that complicated.  The major oil companies are required to put their shareholders first. That means Alaska's interests will be subordinated to a second, third or fourth position. When Gov. Walker came into office, that was the reality he had to deal with. His conclusion was, and is, if Alaska's interests are to be put into a first position, Alaska must first lead the effort. And so, he worked with Exxon, BP and ConocoPhillips to change the structure of the development effort, putting Alaska in a lead position. He secured an agreement with the major producers to commit their lease-hold gas to the project at the well-head. He insisted that the state's lead gas line agency, Alaska Gasline Development Corp., hire an experienced and proven leader. He required that other state agencies cooperate and assist AGDC's leading effort. And very importantly, he went to the world marketplace to seek-out gas purchasers and financiers.

In Japan he found polite interest; the same in Korea. Both Japan and Korea have long established relationships for the supply of LNG. They were polite and interested, but lacked the urgency or geopolitical framework to do a deal. China, however, was different. Firstly, the Chinese are currently, by far, Alaska's leading trade partner. Secondly, the Chinese economy is strong, has a high rate of growth and has a real need for multiple sources of clean burning energy. Thirdly, and very importantly, the Chinese are implementing a geopolitical framework and strategy referred to as the "Belt and Road Initiatives." This is a modern-day version of the so-called China Silk Road trade route between China and Europe established over a thousand years ago. This geopolitical policy and framework is designed to connect China with the rest of the world. A major component of the effort involves the Northern Sea Route and trade opportunities along the route. Gov. Walker recognized the obvious synergy and very favorably, strategically positioned Alaska.

He worked with and through two U.S. national administrations and the Chinese national government; all at the highest levels. As a result of that effort, Alaska and the Chinese have agreed to what is referred to as a Joint Development Agreement. While it is not a final commitment to finance and build the pipeline, it is a necessary step that will probably lead to a final agreement. The project economics are solid, willing sellers are committed, willing buyers have been found, financing can be put in place, and the schedule calls for a final decision in late 2019. Most importantly, "Alaska First" is not just another political slogan.

If nothing else, Bill Walker is an "Alaska First" guy. He has proven it by his actions, and because of that we Alaskans have never had more opportunity than we have today. I didn't support Gov. Walker in the last election, but I will in the upcoming election. I will because he is an honest, hard-working man who has truly put Alaska first.

Bernie Karl is an Alaskan entrepreneur living in Fairbanks. He and his wife, Connie, are the proprietors of Chena Hot Springs Resort, and manage several other Alaska business ventures on behalf of their employee-owned companies.

The views expressed here are the writer's and are not necessarily endorsed by the Anchorage Daily News, which welcomes a broad range of viewpoints. To submit a piece for consideration, email commentary@adn.com. Send submissions shorter than 200 words to letters@adn.com or click here to submit via any web browser.