ABSTRACT
Policy practice for natural resource management in Alaska's coastal and offshore region leaves much to be desired in terms of both the mechanisms it possesses for producing policy outcomes and the kinds of values that are emphasized. Maximization of present value would suggest developing the most promising or profitable areas first, as such areas have the greatest potential for the generation of economic rent. The State of Alaska also maintains a five year schedule for leasing its own potential hydrocarbon-bearing lands. Efficient management and depletion of an oil or gas reservoir require that a single reservoir be managed as a unit. The Geological Survey, as the federal agency responsible for the regulation of oil and gas production, is not mandated to pursue economic efficiency. Efficiency dictates that the level of oil and gas production to aim for is where marginal net benefit of production equals marginal environmental cost.
