V- American Period: Alaska's Economy
What have been the major components of the Alaska
economy during the American period of 1867-present?
 |
| "What Drives the Alaska Economy?" Scott Goldsmith, UA Research Summary No.3 UAA ISER Dec. 20 |
Since the American purchase in 1867, Alaska has had a
diverse mix of economic activity. Today,
there is an almost equal three way split of Alaska’s economy between the
Federal Government, the petroleum industry and all other industries.
Federal Government Spending
Federal government spending is high in Alaska for three main
reasons. The first reason is that the
Federal Government owns 59% of Alaskan Land.
In order to properly care for and manage this land, the federal
government must operate many programs and employ many people.
 | |||||||||
| Alaskan Highway Workers |
The second reason is that Alaska has a strong military presence. This
presence dates back to World War II when hundreds of thousands of troops
were sent to Alaska. These troops build
many of the roads, military bases and airfields that are still being used and operated today.
 |
| Former Senator Ted Stevens |
The third reason is that former Senator Ted Stevens used his
position of power as a senior member of the senate to strongly advocate for
Federal Spending in Alaska.
 |
| Prudhoe Bay Sunrise |
Petroleum Industry
The first commercial oil development in Alaska began in 1902
in Katall, a now abandoned town located 76 miles southeast of Cordova. In the several decades that followed, oil
exploration and small scale oil development occurred in many different parts of
Alaska.
The major Prudhoe Bay Oil Field was first discovered in
1968, but could not be developed until a cost effective method of transporting
the oil could be engineered.
Construction of the famous Alaska Pipeline began in 1974 and oil began
flowing through it in 1977. Although the amount of oil produced in
Prudhoe Bay has decreased in recent years, it continues to provide major
economic benefit to the Alaskan economy.
Other Important Industries
 |
| Gold Miner |
Many other industries have contributed to Alaska’s Economy
since it was first purchased by the United States. Fishing and mining are two of the most
important.
Alaska’s first major Gold Strike occurred in 1880 near
present day Juneau. This strike was the
beginning of an era of prospectors rushing to Alaska to try and find gold and
earn their fortunes. Other early gold
strikes important to Alaska were located near present day Fairbanks and Nome
and in the Canadian Klondike. Today Gold
continues to be discovered and mined in various locations throughout Alaska.
 |
| Kennecott Mine |
In addition to gold, copper has been an important mineral in
Alaska’s economy. The famous Kennecott
Copper Mine operated from 1911-1938. At
the time of its discovery, Kennecott was one of the richest deposits of ore
ever discovered.
Today Copper Continues to be mined at the Red Dog mine near Kotzebue.
 |
| Fishing in Alaska |
Fishing is also an important part of Alaska's economy. Salmon has
been the dominant species in Alaska’s commercial fishing industry. However, crab, shrimp, cod, halibut and
herring also contribute to
Alaska’s economy.
Other components of Alaska’s economy have included fur
hunting and trapping, logging, farming, herding and tourism.
What is the current status of mineral development in
Alaska?
 |
| Fort Knox Gold Mine |
Today, many large and small mines operate in Alaska. The price of gold has risen substantially in recent years, prompting increased interest in further gold exploration and mining. Fort Knox, located near Fairbanks, Pogo,
located near Delta Junction and Nixon Fork located near McGrath are three of the the gold
mines currently operating in the state.
In addition to gold mines, the Usibelli Coal Mine near Healy and the Red Dog Copper Mine near Kotzebue are currently in operation.
 |
| Pebble Mine Site |
Exploration and development of
potential sites for future mines is happening in many places throughout the
state. Some of these explorations and
developments are highly controversial.
The proposed Pebble Mine is the center of major controversy right now
due to its location near Bristol Bay, one of the world's largest and most well known wild salmon fishing
locations. While many Alaskan residents are highly
supportive of the proposed mine because of its potential to boost the area's
economy, many Alaskan residents are fiercely opposed to it because of the potential threat
it poses to the salmon industry. Links to two different websites, one in favor of Pebble Mine and one against it are listed below.
 |
| Large Gold Nugget |
Right now the economic contribution of mining is small in
relation to Federal spending and petroleum. However, mining may play a bigger economic role
in the future if petroleum production continues to decline, federal government spending decreases and the price of precious metals, particularly gold, continues to rise.
Concluding Thoughts
Once again, I found this module very insightful. I did not realize that federal spending made up such a large part of Alaska's Economy. I find this aspect of the Alaska economy very ironic, because it seems to contradict the very conservative, "less government is better" mindset that I have noticed to be very prevalent among Alaskans. In reality, the large government influence is the reason why many of us are able to live comfortably here in Alaska.
The mining aspect of the module was also interesting to me. This is partly because my husband, a geology student, is interviewing for a possible job at Fort Knox Mine tomorrow. This interview has caused me to think a lot about the impacts and ethics of mining, particularly the Pebble Mine controversy. On one hand, I see the devastating impacts that such a mine could have on the environment, in this case, especially the salmon industry. However, on the other hand, in the future, it is quite possible that my husband will be employed by a mine, and our ability to buy food, pay our mortgage and all other necessary bills will be directly linked to the mining industry. It is also true that in our modern, western, materialistic society, we are highly dependent on an abundance of minerals everyday. Even if Pebble Mine does not get developed, another mine like it will be developed somewhere in the world.
I would greatly appreciate some guidance on the appropriate way to cite sources in an internet creation, such as this blog. Particularly, is it appropriate to to find images by going to "Google Images" and then putting a link to the page that the picture originated from? If not, what is the correct way to gather and cite pictures on the internet. Also, throughout the blog, do I need to cite sources that I have read, such as the Alaska History Course, and give a formal reference section at the end of the post? I have noticed that some people are doing this and some people are not. My only experience with citing and referencing is with traditional research papers using APA style, so guidance in the area would be greatly appreciated.
Three Blog Reviews
Niki's blog is very well organized and easy to read. She gives an excellent overview of the legacy left behind from Russian America.
Betty's blog has a really nice picture of a church in Sitka. She gives a thorough explanation of why the Russians were interested in Alaska.
I liked the sometimes humorous tone of Lane's blog. I enjoyed reading the section about the Spanish exploration of Alaska.
No comments:
Post a Comment