Development Opportunities in Alaska

US state of Alaska borders Canada and the Arctic Ocean
○ Covers nearly 2 million km 2
○ Is one of Earth’s coldest regions
● Although it takes up a lot of space → Alaska is one of the Earth’s most sparsely populated areas
○ Reflects lack of economic opportunities
○ ½ the population live in the city of Anchorage
■ Some urban residents work in retailing or education/health/government services
■ Mos t rural residents earn from fishing, mineral extraction, tourism and energy industries
Fishing industry:
● Alaska has 3000 rivers , 3 million lakes and 10686 km of coastline
○ Provides economic opportunities linked with fishing
○ Is viewed as a successful example of sustainable management
● There are 2 main sectors of the fishing industry:
○ Commercial farming
■ Since 1870s → sector has grown to employ 1 in 10 Alaskans
■ Biggest salmon, crab and whitefish fisheries are in Alaska
■ Provides 78, 500 jobs (some jobs are seasonal)
■ Adds $6 billion to the state economy annually
○ Subsistence farming
■ Native American communities remain dependent on fish for several uses
● Fish provide food, oil/fuel and bones (used to help make clothing/tools)

Mineral extraction:
● ⅓ of states mining wealth comes from gold
○ Gold mines must be managed carefully to minimise environmental impacts
■ Humans/ecosystems can be harmed by toxic chemicals
● eg/ chemicals → mercury, cyanide and nitric acid
● Aids rural employment and economic development → minerals are worth $2.1 billion at today’s prices
● Mining development has sometimes been halted due to environmental campaigns
○ eg/ 2015 → Pebble Mine gold project was closed down
■ Native American communities ran an effective “No Dirty Gold” campaign
■ 50 businesses supported → refused to buy Pebble Mine gold
Energy industry:
● Hydroelectric power
○ Over 20 HEP plants → supply Alaskan communities with 20% of their electricity
○ Previously glaciated U-shaped valleys in Alaska are perfect sites or HEP generation
■ eg/ Alaska Energy Authority-owned Bradley Lake project
● Provides 120 megawatts of energy
● But project costs more than $300 million → very expensive
● Geothermal energy
○ Is being harnessed in tectonically active areas of the state
■ Alaska’s coastline is part of the Pacific “Ring of Fire”
○ Tourist resort at Chena Hot Springs near Fairbanks is entirely powered by geothermal power
■ Plant has 400 W capacity → enough for 400 homes

Tourism:
● Tourism attracts between 1 – 2 million summer visitors every year
○ Tourism industry is one of Alaska’s biggest employers
■ Although, some work is seasonal and poorly paid
○ eg/ 2013 → 1.96 million people visited Alaska
■ Direct visitor spending is more than $1.8 billion annually
■ Accounts for 1 in 8 Alaskan jobs
● Tourists enjoy fishing, wildlife, whale watching and kayaking
● 60% of visitors are cruise ship passengers
● State has many national parks, preserves, refuges and monuments

Oil and gas:
● Largest energy source in Alaska
○ Prudhoe Bay oil field has huge resources of petroleum → discovered in 1968
○ Industry is very important to Alaska
■ Employs 110, 000 people
■ Brings $14 billion to state’s economy
● Trans-Alaska Pipeline is used to transfer petroleum → completed in 1977
○ Pumps oil 1287 km south to Valdez → 212 million barrels of oil every year
■ Petroleum is moved by tanker into mainland USA
○ Construction of pipeline was controversial
■ It crossed:
● Indigenous ancestral land
● Earthquake zones
● Permafrost → could melt if pipe was buried into it

But pipeline was built on stilts to overcome problems
● Still has many environmental problems
○ There have been leaks such as at Fort Greely in 2010
○ Has been damage during earthquakes
● Movement of oil by tanker causes problems
○ eg/ tanker named Exxon Valdez ran aground in 1989
■ Released 11 million gallons of crude oil into a region that is a habitat for many marine species