Alaska is the 49th state in the Union and is the largest state in the U.S. Alaska is unattached to the continental U.S. and borders Canada. Alaska is a huge landmass, stretching from Northern British Columbia to the Arctic Circle. Due to its northern location the weather in Alaska is extremely inhospitable and its winters are very long. In more northern sections of the state the sun does not rise for a few months in the dead of winter. Alaska is home to many national and state parks and nature reserves. Most of Alaska is unpopulated wilderness, home to caribou, bear and other animals. Its remoteness and harsh conditions have made Alaska a sparsely populated state, but its wealth of natural resources and coastal regions have made life possible.

CS Question #1: Where is Alaska on the map?

Natural resources drive the Alaskan economy today, but in the past Alaska depended on military activities. In the end of the 1960's oil companies had discovered the Prudhoe oil field, the largest in North America. A Trans-Alaskan pipeline was constructed to carry oil south from Prudhoe Bay to the port of Valdez. This construction and oil drilling operation sparked an economic boom throughout the Alaskan economy. Tens of thousands of people were drawn to the state looking for high paying jobs. Service jobs grew rapidly as well as state and government employment. Fishing and tourism are other important industries. Many coastal areas support themselves by supporting fishing fleets and seafood processing plants. Tourism has been a more recent development as the cruise ship industry has boomed and started offering Alaskan vacations.

CS Question #2: What is Alaska's main industry?

The Alaskan state government is somewhat more involved with the local economy then other state governments are with their own. The state of Alaska owns the Prudhoe oil field and collects billions of dollars in revenues and taxes from its use. The state government uses this money in ways that reach throughout the economy. The state funds construction of public facilities, financial aid to local governments, subsidies for home and business loans and pays annual cash payments in the form of a dividend to every Alaskan citizen. This spending created an economic boom that was felt at every level of Alaskan society. It boosted direct government employment and created jobs in private industry.

CS Question #3: How does Alaska use the oil fields to effect its entire economy?

Since so much of Alaska's economy is either owned or heavily regulated by the state there are many agencies and bureaus overseeing many aspects of industry. In many cases Alaska uses agencies that exist in other states to regulate the uses of natural resources. The Forest Service, for example, owns large sections of the state and regulates the development of the National Forests. While this happens in other U.S. states, it's particularly more noticeable in Alaska, where many communities and oil fields are on Forest Service land. The state also runs a large social service agency to oversee the distribution of the oil revenues throughout the state. A state agency runs the fishing fleets as well, dictating how many fish can be caught and when fishing seasons occur.

CS Question #4: Who owns the natural resources in Alaska?

Further Thought:

1. Why couldn't other states regulate their industries?
2. Why are social services so necessary to the Alaskan economy?
3. Currently, in Alaska, there is debate over whether to further develop oil fields or preserve, which do you think is more important?