March 13, 2009

Begich Discusses Alaska oil in Oval Office with Obama

From Senator Mark Begich's press release:

A strong oil and gas industry, an Alaska-based missile defense system to protect against attacks by rogue nations and a healthy national tourism industry are among the issues Senator Mark Begich raised with President Obama in the Oval Office today. Begich was one of four senators invited by the White House to meet with the President this morning to discuss the upcoming federal budget and other pressing issues.

Begich told the President that as America makes a transition to renewable and alternative energy sources, increased domestic oil and gas production will continue to be vital to the nation's economy and security. As one of the country's top energy producers, Alaska can continue to provide America a steady energy supply, if government tax policies don't put a chill on development, the senator said.

"President Obama himself raised the importance of Alaska's natural gas pipeline as an important component of America's energy supply," Begich said. "He also listened to my concerns about potential adverse impacts of federal policies on domestic energy production."

The Fiscal 2010 budget proposed by the Obama administration eliminates a number of tax incentives and increases taxes on the oil and gas industry. Some estimates are the budget could mean tax increases to the tune of $31 billion on the industry, which the administration wants to use to fund development of renewable and alternative energy sources.

While supporting new energy sources, Begich said fossil fuels will continue to heat American homes and fuel its vehicles and factories for years. The senator urged the President to work with Congress for a comprehensive national energy policy that incorporates important Alaska energy resources, such as an Alaska natural gas pipeline and new oil reserves in the Arctic.

On missile defense, Begich urged the President to continue the ground-based missile defense system being built at Fort Greely. The system is designed to protect against missile attacks from countries such as North Korea, which continues to test missiles capable of hitting Alaska. Hundreds of Alaskans are employed in the system which is tested in conjunction with the Kodiak Launch Facility.

Begich also stressed the importance of a healthy national tourism industry, which is especially important to Alaska. Visitors bring an estimated $1 billion to Alaska's economy annually and create thousands of jobs for Alaskans.

The group discussed with the President the need to tackle the increasing federal deficit, which President Obama said he planned to do through reforms of health care and reducing America's presence in Iraq.

Begich and his three Democratic colleagues met for about 45 minutes with the President, Office of Management and Budget Director Peter Orzag and other administration budget officials. Other senators in the meeting included: Byron Dorgan of North Dakota, Blanche Lincoln of Arkansas and Jeanne Shaheen of New Hampshire.