Mike
There was sufficient gas in the inlet to power AK for generations. To extract money at today's rates, rather than wait until extraction made sense, they started producing something which was not needed, but could be sold, fertilizer.
Bean-counters base decisions on things like the time-value of money. One of those equations says money not earned within seven years is nearly valueless. That is the reason the gas was converted into fertilizer rather than saved for today...
At the same time, manure and fish waste (among many other items) were becoming a dumping problem because they could not compete as cheap fertilizer. The price of corn is lower than the cost of producing it. Farmers cannot raise beef on corn they grow themselves because corn is so cheap.
Manure from stockyards is too hot and too salty for decent fertilizer without purifying, so petroleum-based fertilizers are used. If the Agrium fertilizer was not there it would only cost a trifle more to use the manure as fertilizer. Fish by-products could compete for use, also.
While Agrium provides a few perks for the locals the net cost is far higher than it appears. My natural gas bill has gone through the roof since the contracts for cheap gas started expiring and new ones written, for example. Finding new gas and signing long-term contracts for it will raise my bill a lot more.
As for local jobs, just how many North Kenai Residents do you want hanging about? <img src="/ubbthreads/images/graemlins/grin.gif" alt="" />
My problem with Agrium is based on all aspects of what they are doing and find it a criminal waste of the resource. YMMV
art
