Alaska-Alberta Relations Paper

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							   Alaska – Alberta
   Relations




 PROFILE                                          DID YOU KNOW?                                          In June 2002, Premier Klein &
                                                                                                         Governor Knowles signed a
 Capital: Juneau                                     The Alaska Permanent Fund is a                      Memorandum of Understanding
 Population: 686,293 (2008 est.)                     trust fund similar to Alberta’s                     (MOU), agreeing to cooperate in
                                                     Heritage Savings Trust Fund. It was                 such areas as energy,
 Language: English                                   established in 1976 to generate                     transportation, aboriginal issues,
                                                     perpetual revenues for present and                  trade and investment.
 Government: Bicameral state
                                                     future generations of Alaskans.
 government                                                                                               o    The MOU created an Alaska-
 Head of Government: Governor Sean                   The Fund’s value as of June 2008                          Alberta Bilateral Council
 Parnell (R)                                         exceeds $US 39.4 billion, providing                       (AABC). The AABC working
                                                     an annual dividend to all citizens.                       groups focus on five areas:
 Currency: $1 CDN = 0.969 USD,                                                                                 energy; transportation;
 (January 2010)                                      Anchorage hosted the 2007 annual                          economic development and
                                                     Pacific Northwest Economic Region                         tourism; aboriginal issues; and
 GSP: $US 44.5 billion (2007)                        (PNWER) meeting.                                          human resources, education
 GSP Per Capita: $US 44,807 (2007                                                                              and training.
 est.)
                                                                                                         Alaska hosted the 2006 AABC
                                                  RELATIONSHIP OVERVIEW
 Key Industry Sectors: Oil & gas,                                                                        meeting in Juneau, March 23-24.
 tourism, commercial fishing, mining,                Alberta-Alaska relations were close
 forestry                                                                                                Tourism North is a joint marketing
                                                     in the 1970s and 1980s, based on
                                                                                                         campaign to promote tourism in
                                                     common northern issues and
 Unemployment: 8. 7% (Nov. 2009)                                                                         partnership between Alberta and
                                                     similarities between Alberta’s
                                                                                                         Alaska, along with British Columbia
 Major Metropolitan Areas:                           Heritage Fund and Alaska’s
                                                                                                         and the Yukon Territory.
 (2008 est.)                                         Permanent Fund.
                                                                                                         Canadian and Alaskan agencies are
 - Anchorage 362,340                                 Over the last few years, ties have
                                                                                                         cooperating on the Wood Bison
                                                     been reinvigorated as Alaska seeks
 - Fairbanks 97,484                                                                                      Recovery Project, reintroducing
                                                     to develop its vast gas resources.
                                                                                                         animals from Elk Island National
 - Juneau 31,300                                                                                         Park in Alberta to the Alaska Wildlife
                                                                                                         Conservation Center.




Input was provided from the departments of: Advanced Education & Technology, Agriculture & Rural Development, Education and Energy
                                                                                                                             January 2010
                         Alberta's Exports to Alaska (1999-2008)                                   Alberta's Exports to Alaska (2004-2008 Average)


                160

                140                                                                                  Optic/Medical              Other
                                                                                                     Instruments
                120                                                                                                             23% Machinery
                                                                                                          4%
$CDN Millions




                                                                                                                                      35%
                100
                                                                                              Organic
                80
                                                                                             Chemcials
                60                                                                              4%
                                                                                                          Vehicles-not
                                                                                                              rail                                 Mineral
                40
                                                                                                              6%                                   Fuel/Oil
                20
                                                                                                                                    Furniture &     10%
                                                                                                              Iron/Steel             Bedding
                 0                                                                                               8%                    10%
                       1999 2000 2001 2002 2003 2004 2005 2006 2007 2008



                TRADE AND INVESTMENT                               NATURAL GAS                                             In December 2005, the US Senate, in a
                                                                                                                           close vote, blocked passage of a bill
                      Over the past five years, Alberta              Alaska has about 10.245 trillion cubic                that would allow some oil and gas
                      exports to Alaska have averaged                feet (Tcf) of proven natural gas                      exploration in ANWR. Again, in May
                      $115.4 million per annum.                      reserves, or roughly 5% of total US                   2006, the House of Representatives
                                                                     natural gas reserves (2006).                          passed a bill to once again open up
                      Alberta’s merchandise exports to                                                                     ANWR for drilling paving the way for
                      Alaska consist of machinery (mainly oil        However, estimates suggest Alaska's                   another potential Senate vote on the
                      and gas equipment), oil, furniture and         North Slope fields could contain 30-35                issue.
                      bedding.                                       Tcf of stranded natural gas resources.
                                                                                                                           It has been projected that if ANWR is
                                                                     Northern gas development has emerged                  opened to oil development, production
                                                                     as a priority for both the US                         from ANWR would reach 900,000
                ENERGY
                                                                     Administration and Alaska government,                 barrels per day by 2025.
                      Alaska’s largest industry is oil and gas.      to meet growing US demand. Getting
                                                                     the northern gas to market is a key
                      In 2007, oil and gas industry revenues         challenge.
                      from property, corporate income and
                                                                                                                       TRANSPORTATION
                      royalties contributed 87% of Alaska’s          Alaska recognizes that Alberta’s well-
                                                                     developed pipeline infrastructure and                 The CANAMEX initiative proposes a
                      General Purpose Unrestricted Revenue
                                                                     status as an energy hub could be                      multi-lane super-highway from
                      and should continue to provide 91% in
                                                                     advantageous for transporting Alaska’s                northern Alberta, through the Rocky
                      2008.
                                                                     gas to major markets in the lower 48                  Mountain US states, down to Mexico
                OIL                                                  states.                                               City. Alaska may ultimately be the
                                                                                                                           northern terminus of this highway.
                      Alaska ranks 2nd in the United States in
                      crude oil reserves, after Texas.                                                                     CANAMEX enhances trade, economic
                                                                   Arctic National Wildlife Refuge                         development, technology infrastructure,
                      Alaska’s reserves, at 3.9 billion barrels,
                                                                   (ANWR)                                                  recreation and tourism opportunities
                      account for over 18% of total US crude
                      oil reserves (2006).                                                                                 throughout the region, in addition to
                                                                     ANWR located in the north-eastern                     increasing efficiency in multi-modal
                                                                     corner of Alaska, is the largest wildlife             transportation.
                      Following the discovery of the Prudhoe
                                                                     refuge in the US, with approximately
                      Bay oil field, the largest in North
                                                                     19.3 million acres (roughly the size of               Alaska seeks Alberta’s support for the
                      America, in 1968, and the
                                                                     South Carolina). ANWR shares a border                 possibility of connecting the state to the
                      commencement of oil production in
                                                                     with the Yukon Territory.                             rest of the continent by rail.
                      1977, Alaska has been a vital domestic
                      oil supplier in the US                         The US Federal Government currently
                                                                     prohibits oil and natural gas
                      All oil from Alaska’s Northern Slope is
                                                                     development in the ANWR. Before oil
                      transported via the 800-mile Alyeska
                                                                     and gas development can precede,
                      (Trans-Alaska) pipeline to the port at
                                                                     Congress and the President need to
                      Valdez, where crude oil is shipped
                                                                     authorize leasing and development.
                      primarily to California. More than 14
                      billion barrels have moved through the         Opening ANWR to oil and gas
                      Trans Alaska Pipeline System since its         exploration and production remains a
                      start up in 1977.                              controversial issue.
FORESTRY                                      Industrial/agricultural machinery                 Anchorage to meet with Governor
                                                                                                Murkowski, BC and Yukon to discuss
 Forestry is important to Alaska’s            Metal products (basic, fabricated)                the Alaskan gas pipeline.
 economy, especially in the
 southeastern region.                         Transportation equipment and tourism              March 2006: Alberta delegates traveled
                                                                                                to Juneau for the 2006 Alaska-Alberta
 Recent years have been difficult for the     Chemicals and allied products                     Bilateral Council meeting.
 forestry industry in Alaska. Pulp mill
 closures (i.e. Ketchikan Pulp Mill), and                                                       January 2005: Rob Renner, Minister of
 a drop in Pacific Rim demand, hurt the                                                         Alberta Municipal Affairs traveled to
                                             MEMBERSHIPS
 state’s wood products sector.                                                                  Juneau as part of the PNWER executive
                                                                                                officer’s tour.
                                               Alberta and Alaska share membership in
                                               a number of integral regional
                                                                                                September 2004: Officials from Alberta
FISHING                                        organizations including:
                                                                                                International and Intergovernmental
                                               o    Council of State Governments-               Relations attended the CSG – WEST
 Alaska’s fishing and seafood industry is
                                                    West (CSG – WEST)                           Legislative Conference in Anchorage.
 one of the state’s largest private
 industry employers. In 2006, Alaska’s         o    The Northern Forum                          May 2004: Governor Murkowski led an
 seafood exports totaled over $2 billion
                                                                                                Alaska delegation to Alberta for the
 US, and accounted for half of the             o    Pacific NorthWest Economic Region
                                                                                                inaugural meeting of the Alaska-Alberta
 state’s total exports.                             (PNWER)
                                                                                                Bilateral Council.
  In the late 1990s, several factors,          o    Western Governor’s Association
                                                                                                Oct 2003: Governor Murkowski
 including decreases in international fish     o    Sectoral bodies such as the Energy          attended the Far North Oil and Gas
 prices, hurt the seafood industry in               Council and the Western                     Forum in Calgary.
 Alaska. However, recent increases in               Legislative Forestry Task Force.
 price, driven mostly by increased                                                              Sept 2003: Premier Klein and Governor
 demand in Southeast Asia, have helped         Alaska and Alberta are both members of           Murkowski met at Western Governors’
 to reinvigorate this important sector of      the Northern Forum, an international             Meeting to discuss mutual priorities for
 Alaska’s economy.                             organization comprised of 23 sub-                the Alaska-Alberta Council.
                                               national governments from Canada,
 Alaska is restoring its once-depleted         China, Russia, Japan, and Scandinavia.           June 2002: Premier Klein’s mission to
 salmon runs by employing a                    The Northern Forum is headquartered in           Alaska.
 “conservation-first” fisheries                Anchorage.
 management system.                                                                             Aug 2001: State Senator John
                                               Alaska hosted the CSG-West 2008                  Torgerson and members of Alaska’s
 In 2007, the salmon harvest was over          annual meeting at which Alberta played           Joint Committee on Natural Gas
 212 million fish worth an estimated           a major role in a session titled, The            Pipelines visited Alberta.
 value of $US 374,372,000, an 8%               North America Summit with legislators
 increase from 2006.                           from US and Mexico to discuss energy
                                               and competitiveness issues.
                                                                                             DIPLOMATIC REPRESENTATION
POLITICS                                                                                        The US Consul General is Laura
                                                                                                Lochman.
 Alaska has strong Republican
 representation including Senator Ted        RECENT VISITS                                      The Canadian Consul General in Seattle
 Stevens (Vice Chairman of the                                                                  is Peter Lloyd.
 Committee on Commerce, Science, and          May 2008: The Mid-Year Conference of
 Transportation and former Senate             the Interstate Oil and Gas Compact                Canada opened a consulate in
 President Pro Tempore), Senator Lisa         Commission (IOGCC) is chaired by the              Anchorage (a satellite of the Consulate
 Murkowski (Member of Senate Energy           Honorable Sarah Plain, Governor of                General in Seattle) in August 2004,
 and Natural Resources Committee and          Alaska, in Calgary.                               headed by Consul Karen Matthias.
 Foreign Relations Committee), and
 Congressman Don Young (Ranking               July 2007: Alberta sent a delegation to
 Republican Member of the House               Anchorage for the annual PNWER
 Committee on Natural Resources).             summit.

EMERGING OPPORTUNITIES                        April 2007: Ms. Drue Pearce, US Federal
                                              Coordinator of Alaska Natural Gas
 Forest products                              Transportation Projects visited Alberta.

 Energy products                              March 2006: Premier Klein’s mission to




                                                                                   For more information, contact:
                                                                                   Alberta International and Intergovernmental Relations
                                                                                   Phone: 780-422-1510 Fax: 780-427-0699
                                                                                   http://alberta.ca/home/Feedback.cfm

						
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