That is not the whole story.  Pipelines all across the US are owned by pipeline company's that are typically formed in an MLP with a return around 10%.  Investors like stable returns.  Big oil is trying for more than 10% returns and don't like pipelines the same way.  The state's investment in the pipeline would give it a great amount of leverage.  Also don't forget that a $60B project in AK would create a boom not seen since the 70's.  Either the entire project should be scrapped, OR state ownership is a good thing, there really is not middle ground.