Young,  Have you any experience in the private sector? There efficiency rules the day.  Efficiency translates the profit. On the other hand, the public sector (government) is concerned most with increasing employment, patronizing labor unions and reelection. If the state ran an oil company employment would increase 3-4 times what it is now. Profit and efficient operation would be non-existent. The cost of production would make it impossible for Alaska to sell oil it extracted. Do you remember; The Healy Clean Coal Power Plant, the Anchorage Seafood Processing Center, Port MacKenzie, Point MacKenzie dairy farms, or Delta Junction barley? All great examples of what happens when government enters what would otherwise be private sector endeavors.  Need more evidence; since the price of oil plummeted the oil companies have shed thousands of jobs. Alaska has a $4 billion deficit but cannot bring itself to do deal with its bloated and inefficient workforce. Why, because somebody else pays.