Essay On Alaska

856 WordsOct 4, 20174 Pages
Budget and Economy in Alaska Located in the Northwest limit of the United States of America (USA), Alaska is the largest state of the US. Despite its big dimension, it is one of the least populated states due its cold weather. Most of Alaska's economy comes from its natural resources. The fishing, natural gas, and oil industries dominate it-almost 85% of its budget comes from oil and gas revenues. Alaska also provides half of the nation’s coal reserves, and has one of the largest silver and zinc mines. However, most of its resources are undeveloped due to its remote location and lack of infrastructure as mentioned in the ground truth trekking website. The industry directly employs around 4,500 people, indirectly supports over 8,000…show more content…
Many regulations and measures have been passed to reduce pollution and control the use of natural resources nationally as well as internationally. Most of the states and countries are also concerned about the emission of carbon. Producing oil is also becoming less and less expensive thus making less appealing to produce oil in Alaska where building a drill is more expensive. In addition, the ongoing increase of the electric and more fuel-efficient cars demand has a major impact on the oil industry. This will result in a decrease of oil price and its demand. The best alternative for Alaska will be to diversify its source of income and not just heavily depend on oil money. Since Alaska is donated with many natural resources, Alaska can take advantage of it to develop its economy. Firstly, Alaska can shift its focus from oil and gas to coal. About 30% of the US coal is in Alaska. However, most of the coal is in the Arctic Circle and therefore hard to access. If Alaska invest in power plants and in innovating technology that will allow to safely dig for coal in the far North, Alaska will considerably increase its revenues given the high demand of coal here and all over the world. Alaska will also have to do a research to effectively localize al the coal available in the state and the best to get to it. It also must comply to the state regulations as well as
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