ANCHORAGE, Alaska (KTVA-CBS 11 News) - State Rep. Jay Ramras, R-Fairbanks, says building a separate in state pipeline, or "bullet line," is one of the only ways to prevent a looming economic crisis.

A couple of sobering days at the annual Resource Development Council meeting November 18 and 19 are only the latest developments.

Oil and natural gas producers said taxes are just one reason they are cutting back on Alaska spending and jobs. Add to that the dwindling oil supply currently paying for about 90 percent of the state budget, which various estimates say will not be profitable by between 2018 and 2030.

Ramras says this discussion has three important parallels, starting with addressing that falling oil production paying for state income taxes, and creating a large number of Alaska jobs.

State economist Neal Fried says the falling oil economy could have a huge impact.

"A disproportionate impact on Alaska's economy," Fried says. "We're just not sure where it's going. I mean one thing for certain is we're producing a lot less, and oil continues to decline."

BP Spokesperson Steve Rinehart says instead of an exit strategy, company officials think there is a way to work though falling oil production if the state chooses long-term investment over short-term spending.

Also, Ramras says growing concerns a large Alaska to Lower 48 gasline, both the state backed AGIA TransCanada-ExxonMobil project and BP-ConocoPhillip's Denali are battling to

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build, may not come to fruition.

"The slowness of either project, AGIA or Denali coming to market to create a second stream of income for the state is a second parallel discussion. And a bullet line to provide energy security is a third discussion," Ramras says.

That separate instate pipeline is what Ramras, and former Governor Frank Murkowski, have said are both possible gas supply, and economic crisis solutions.

ENSTAR's John Sims admits South Central might not have enough gas supplies by 2011 because they have not secured producer contracts.

Sims says that means, "Anything from having to find a new energy source, energy needs, to curtailing customers and not allowing them to come onto our system."

Ramras says while the state's budget is still profitable the bullet line investment should made, but accuses state natural resource officials of standing in the way.

"The people at the top of DNR smother out those options by paying attention to disproportionate options they favor," Ramras says.

DNR officials did not return CBS 11 News' request for comment.

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