CNBC Exclusive: CNBC's Maria Bartiromo Sits Down with Vice Presidential Candidate and Governor of Alaska, Sarah Palin (Transcript Included)

When: Friday, August 29, 2008 at 10PM ET
Where: "A Maria Bartiromo Special: The Sarah Palin Interview"

Following is the unofficial transcript of a CNBC EXCLUSIVE interview with Vice Presidential Candidate and Governor of Alaska Sarah Palin. The interview will air tonight on a CNBC Special Event: "A Maria Bartiromo Special: The Sarah Palin Interview" at 10PM ET on CNBC.

All references must be sourced to CNBC.

BARTIROMO: GOVERNOR GREAT TO HAVE YOU ON THE PROGRAM

PALIN: THANK YOU

BARTIROMO: THANKYOUFOR JOINING US. TELL ME ABOUTTHE SIZ AND SCOPE OF THE OIL OPERTATIONS UPON THE NORTH SLOPE. ONE ANALONGY OUT THERE IS THAT ITS LIKE A STAMP ON FOOTBALL FIELD.

PALIN: THAT'S PRETTY ACCURATE. IT IS, OR WE HEAR THE ANALOGY ALSO, WHICHIS QUITE ACCURATE, ITS LIKE THE LOT THATYOUHAVE WITHYOUR HOUSE PLOPPED I THEMIDDLE YOUPUTYOURTOW PRINT ON THE LAWN OF THIS LOT, THAT ABOUT THE FOOT PRINT OF THIS OPERATION UP IN PRUDO BAY. ECONOMICALLY SPEAKING, THOUGH, IT'S ABOUT 20% OF THE U.S. DOMESTIC SUPPLY IS -- OF ENERGY IS PRODUCED UP ON THE NORTH SLOPE. SO VERY, VERY SIGNIFICANT ECONOMICALLY.PHYSICALLY, THANKFULLY, TINY LITTLE FOOTPRINT.

BARTIROMO: SO YOU'RE SAYING IT'S A TINY LITTLE FOOTPRINT, ACTUALLY THE OPERATIONS IN PRUDO BAY, BUT PEOPLE THINK OF IT AS SO EXPANSIVE AND SO MASSIVE THAT IT'S GOING TO HAVE A MATERIAL EFFECT IF IN FACT WE WERE TO SEEDRILLING THERE ON THE WILDLIFE AND ON THE COMMUNITY.

PALIN: WELL, ANWR AT THAT POINT IT'S ABOUT 2,000 ACRES THAT IS BEING ASKED TO BE LOOKED AT AND TO BE EXPLORED AND TO BE PRODUCED. 2,000 ACRES OUT OF 20 MILLION ACRES. THAT FOOTPRINT, IT'S ABOUT THE SIZE OF L.A.X. OR ONE OF THE LARGER AIRPORTS ACROSS THE NATION. AND THAT SHOULD ALLOW SOME PERSPECTIVE THERE ALSO. BUT YOU KNOW, NO ONE, I THINK, BUT ALASKANS CARE MORE ABOUT OUR WILDLIFE, ABOUT OUR CLEAN WATER, OUR CLEAN AIR, THE PRISTINE ENVIRONMENT THAT WE ARE BLESSED TO LIVE IN AND GET TO BREATHE IN EVERY SINGLE DAY. NO ONE BUT ALASKANS WILL CARE MORE TO MAKE SURE THAT WE ARE PRESERVING THAT PRISTINE ENVIRONMENT THAT IS ANWR, THE COASTAL PLAIN, PRUTO BAY, ALASKA AS A WHOLE. AND WHEN YOU ASK ALASKANS DO YOU AGREE TO ALLOW DRILLING TO TAKE PLACE ON THE NORTH SLOPE, SPECIFICALLY HERE WE'RE TALKING ABOUT ANWR, DO YOU WANT TO SEE THAT HAPPEN? AND WITH ALASKANS' LOVE AND CARE FOR OUR ENVIRONMENT AND OUR LANDS AND OUR WILDLIFE, ALASKANSARE SAYING YES BECAUSE WE BELIEVE THAT IT CAN BE DONE SAFELY, PRUDENTLY, AND IT HAD BETTER BE DONE ETHICALLY ALSO.YES, WE WANT TO SEE THAT DRILLING. SO HOPEFULLY THE REST OF AMERICA CAN UNDERSTAND THAT ALSO. YOU GO DOOR TO DOOR AND ASK ALASKANS IF WE ARE READY AND WILLING TO PRODUCE MORE AND CONTRIBUTE MORE TO THE U.S. AND THEY'RE GOING TO TELL YOU YES.

BARTIROMO: PRESIDENT BUSH TRIED THIS A NUMBER OF TIMES UNDER HIS WATCH. WHY IS IT WE HAVE BEEN UNABLE TOGET THIS DONE?

PALIN: I THINK THERE'S BEEN A LOT OF MISCONCEPTIONS AND MISPERCEPTIONS ABOUT WHAT ANWR IS ALL ABOUT AND UP ON THE NORTH SLOPE WHAT THE ENVIRONMENT ACTUALLY IS UP THERE. YOU SEE PICTURES, YOU SEE VISUALS FROM THE NAYSAYERS, THE CRITICS OF THE IDEA OF OPENING ANWR, AND THE PICTURES THAT THEY'RE SHOWING ARE MOUNTAINS AND -- POLAR BEARS.

BARTIROMO: POLAR BEARS.

PALIN: LOTS OF DIFFERENT WILDLIFE. THEY'LL SHOW MOOSE IN A STREAM WITH MOUNTAINS IN THE BACKGROUND.THAT'S NOT ANWR. AND AS YOUR PEOPLE GO UP THERE ALSO AND ACTUALLY GET TO SEE FORTHEMSELVES -- AND WE'VE HAD A LOT OF CONGRESSMEN AND CONGRESSWOMEN COME UP HERE THIS SUMMER EVEN TO SEE FOR THEMSELVES WHAT ACTUALLY IS ANWR, WHAT WOULD BE TOUCHED HERE IN TERMS OF LANDS AND WILDLIFE, THEN THEY SEE THAT THOSE VISUALSTHAT HAVE BEEN SHOWED AMERICA FOR ALL THESE YEARS ARE INACCURATE.THOSE ARE NOT THE PICTURES OF ANWR. THERE AREN'T MOUNTAINS UP THERE,FOR INSTANCE.SO I THINK THERE'S A LOT OF MISPERCEPTION OUT THERE ABOUT WHAT THE PLAIN ACTUALLY LOOKS LIKE.AND THE VISUALS ARE VERY IMPORTANT TO AMERICANS. I DO THINK, THOUGH, THAT AMERICANS ARE RECOGNIZING MORE AND MORE IT'S EVIDENCED IN THE PRESSURE THEY'RE PUTTING ON CONGRESS AT THIS POINT, THE CONSTITUENTS PUTTING ON CONGRESS, MORE AND MORE AMERICANS ARE RECOGNIZING IT IS TIME TO RAMP UP AMERICAN SUPPLY OF ENERGY, ESPECIALLY WE'RE A NATION AT WAR, A LOT OF THE ISSUES THAT ARE SO ADVERSELY AFFECTING AMERICA ARE BASED ON ENERGY SUPPLIES AS WE'RE RELYINGON FOREIGN SOURCES OF ENERGY TO FEED OUR HUNGRY MARKETS, MORE AND MORE AMERICANS ARE RECOGNIZING YOUR SISTER STATE UP IN THE ARCTIC, ALASKA HAS THESE SUPPLIES. WE HAVE TRILLIONS OF CUBIC FEET OF CLEAN NATURAL GAS. WE HAVE BILLIONS OF BARRELS OF OIL STILL SITTING UNDERGROUND, IN A SENSE BEING WAREHOUSED.IT'S TIME TO UNLOCK THESE RESERVES AND ALLOW COMPETITORS TO COME IN AND COMPETE FOR THE RIGHT TO TAP THOSE RESOURCES AND START FLOWING THAT ENERGY INTO THE DOMESTIC MARKETS THAT ARE SOHUNGRY SO THAT WE CAN BECOME LESS RELIANT ON FOREIGN SOURCES OF ENERGY. AS MORE AMERICANS RECOGNIZE THAT, MORE AMERICANS, IBELIEVE,ARE CHOOSING TO EDUCATE THEMSELVES ON WHAT ANWAR IS REALLY ALL ABOUT.

BARIROMO: FOR SURE.AND I GUESS THIS YEAR THERE WAS A PRICE AND ONCE THERE WAS A PRICE THAT WAS ACTUALLY REACHED IT WAS -- PEOPLE GOT IT.

PALIN: YEAH. I BELIEVE SO TOO.

BARTIROMO: LET ME GET YOUR THOUGHTS ON REALLY THE CONSEQUENCES.WHAT THEN ARE THE MAJOR CONSEQUENCES OF DRILLING IN ANWR? I WAS READING A PIECE EARLIER THAT SAID, LOOK, IT WILL IMPACT THE BREEDING OF CARIBOU, THE BREEDING OF POLAR BEARS.GIVE ME YOUR SENSE.WHAT ARE THE CONSEQUENCES?

PALIN: WELL, LET'S LOOK AT LESSONS LEARNED OVER THE LAST 30 YEARS WHEN THE TRANSALASKA OIL PIPELINE WAS FINALLY ALLOWED TO BE BUILT AND THERE WERE THE THREATS THEN AND THE FEARS THAT THE CARIBOU HERDS WOULD DIMINISHAND DIE OFF. NO, THE CARIBOU HERDS ARE ACTUALLY THRIVING. THEY'RE FLOURISHING. THERE HAVE NOT BEEN THE ADVERSE IMPACTS ON THE CARIBOU HERDS.SO WE ANTICIPATE THE SAME THING AS WE TAP MORE ENERGY SUPPLIES UP ON THE NORTH SLOPE IN ANWR AND AS WE BUILD A NATURAL GAS PIPELINE ALSO THAT'S UNDER WAY AT THIS POINT. WHEN YOU CONSIDER THE NAYSAYERS, THE FEAR MONGERS, 30 YEARS AGO BEFORE THE TRANSALASKA OIL PIPELINE WAS BUILT -- AND REMEMBER, THAT PIPELINE HAS SUPPLIED 15 BILLION BARRELS OF OIL INTO OUR DOMESTIC SUPPLIES HERE IN AMERICA. AND BY THE WAY, BIDEN, JOE BIDEN WAS ONE WHO VOTED AGAINST THAT TRANSALASKA OIL PIPELINE 30 YEARS AGO. HE WAS FEARFUL OF ALLOWING RAMPED UP DOMESTIC SUPPLIES OF FOREIGN ENERGY EVEN THEN. SO OF COURSE I FEAR THAT IF HE'S OF THE SAME MIND TODAY WE'RE IN A WORLD OF HURT THERE. NO. THE ENVIRONMENT WILL CONTINUE TO BE PROTECTED. OUR WILDLIFE WILL CONTINUE TO THRIVE AND TO PROSPER UP THERE. AND WE'RE GOING TO MAKE SURE THAT WE HAVE THE STRINGENT AND SAFE OVERSIGHT THAT IS NECESSARY AND THAT WILL ALLOW THE POPULATION OF THIS WILDLIFE AND THE PRISTINENESS OF THE AREA TO CONTINUE.

BARTIROMO: OKAY.LET'S TALK ABOUT JOBS AND SORT OF THE IMPACT OF DRILLING AND OFOPERATIONS THERE. HOW SIGNIFICANT?

PALIN: HERE IN ALASKA OIL PRODUCTION IS SO SIGNIFICANT. ABOUT 85% TO 90% OF OUR ENTIRE STATE BUDGET IS BASED ON THAT BARREL OF OIL AND THE PRICE THAT IT DRIVES, AND OUR STATE REVENUE IS, AGAIN, SO RELIANT ON THE PRICE OF A BARREL OF OIL.FOR SUCH A GREAT PART ALSO ALASKAN JOBS ARE CONTINGENT UPON VERY AGGRESSIVE PRODUCTION OF OIL AND NATURAL GAS UP HERE IN ALASKA.SO --

BARTIROMO: AND PROBABLY THE LOWER 48 STATES.IT'S A RIPPLE EFFECT.

PALIN: ABSOLUTELY.AND ALSO THE RIPPLE EFFECT, MAY AS WELL TALK ABOUT THIS ALSO, ISOUR BELIEF TOO THAT AS MORE DOMESTIC SUPPLIES OF ALASKAN ENERGY FLOW INTO THE HUNGRY MARKETS, NATURALLY WE BELIEVE THE PRICE OF ENERGY WILL DIMINISH ALSO.IT WILL DECREASE, AND THAT WILL BE GOOD FOR THE ECONOMY AS A WHOLE.BUT VERY, VERY IMPORTANT TO THE ENTIRE U.S. ECONOMY.SPECIFICALLY HERE IN ALASKA, THOUGH.MY GOODNESS.IT IS WHAT DRIVES OUR ECONOMY.

BARTIROMO: SO HOW IMPORTANT ARE THE OIL AND GAS INDUSTRIES?BUSINESSES TO ALASKANS.

PALIN: VERY, VERY IMPORTANT.CONOCO PHILLIPS, EXXON, BP, YOU KNOW, WE BUTT HEADS QUITE A BIT WHEN IT COMES TO THE SOVEREIGNTY HERE OF OUR STATE.ALASKA IS SET UP UNLIKE ANY OTHER STATE IN THE NATION WHERE OUR STATEHOOD COMPACT ACT AND OUR STATE CONSTANT TOOUGS LAYS OUT FOR US WHO OWNS THE RESOURCES AND UNLIKE OTHER STATES IT'S ALASKANS, THE RESIDENCE WHO LIVE HERE WHO OWN THE RESOURCES UNDERGROUND.SO AS THEY'RE TAPPED, AS THEY'REPRODUCED, ALASKANS SHARE IN THE WEALTH THAT'S DERIVED FROM THE PRODUCTION OF THESE RESOURCES. SO THE OIL INDUSTRY, THEY'RE OURPARTNERS HERE. THEY HAVE THE LEASE IS THE RIGHT TO DEVELOP THE RESOURCES BUT ALASKANS OWN THE RESOURCES. SO THAT NATURALLY CREATES SOME TENSION IN WHO OWNS WHAT AND WHO CAN CONTROL WHAT. BUT OUR POSITION OF STRENGTH IN MY ADMINISTRATION WE KNOW IS OUR STATE CONSTITUTION THAT, AGAIN, LAYS OUT FOR US WHO ACTUALLY OWNS THE RESOURCES.THAT'S THE ALASKAN RESIDENTS. AND I WILL DO ALL THAT I CAN TO PROTECT THE ALASKAN RESIDENTS AS WE DEVELOP. BUT AT THE SAME TIME WE RECOGNIZE THAT THE BIG OIL INDUSTRY THAT IS HERE, THEY DO HAVE THE RIGHTS AND HAVE HAD THE RIGHT FOR MANY YEARS NOW TO DEVELOP THOSE RESOURCES FOR US AND WITH US.

BARTIROMO: HOW WILL YOU DO THAT? HOW WILL YOU PROTECT ALASKANS' HOMES, THEIR ENVIRONMENT? WHAT ARE YOU THINKING AS WE APPROACH THIS DEBATE WHERE ON THE ONE SIDE PEOPLE SAY DRILL, DRILL, DRILL, ON THE OTHER SIDE PEOPLE ARE SAYING LOOK, WE NEED TO KEEP THIS AREA PRISTINE?

PALIN: WE NEED TO DRILL, DRILL, DRILL.OTHERWISE, I CANNOT BELIEVE A DOMESTIC SOLUTION IS ANY PART OF A NATIONAL ENERGY POLICY IF THEY'RE NOT GOING TO LET ALASKANS DRILL ON OUR OWN LANDS AND ON FEDERAL LANDS WITHIN OUR OWN STATE. AND IF A DOMESTIC SOLUTION ISN'TPART OF A NATIONAL ENERGY PLAN, THEN OUR NATION IS IN A WORLD OF HURT, WE'RE GOING TO CONTINUE TOBE RELIANT ON FOREIGN DANGEROUS REGIMES TO FEED OUR HUNGRY MARKETS. I FIND IT IRONIC AND I FIND IT NONSENSICAL THAT HERE WE SENT SECRETARY BODMAN, WE EVEN SEND OUR OWN PRESIDENT OVERSEAS TO NEGOTIATE WITH THE SAUDIS TO ASK THE SAUDIS RAMP UP OIL PRODUCTION FOR US IN AMERICA WHEN, AGAIN, ABSOLUTE NONSENSE BECAUSE ALASKA HAS THOSE RESOURCES ALREADY AND WE SHOULD BE TAPPING THESE AMERICAN SUPPLIES BEFORE WE GO TO THE SAUDIS AND ASK THEM TO DO SO.SO VERY SIGNIFICANT HERE WHAT IS GOING ON. AND I THINK OUR NATION IS AT A CROSS-ROADS ALSO. WE'D EITHER BETTER BE MAKING DECISIONS TO ALLOW THIS AMERICAN SUPPLY OF ENERGY TO BE TAPPED ORWE'RE GOING TO BECOME MORE AND MORE BEHOLDEN TO THESE FOREIGN REGIMES. AND AGAIN, OUR NATION'S GOING TOBE IN A WORLD OF HURT WHEN YOU TALK ABOUT NATIONAL SECURITY, WHEN YOU TALK ABOUT EVER REACHING POTENTIAL TOWARD ENERGY INDEPENDENCE, IF WE CANNOT IMPLEMENT A DOMESTIC SOLUTION FOR THIS NATIONAL ENERGY POLICY.AND WE HAVE LACKED A NATIONAL ENERGY POLICY ALSO.WE HAVE NOT HAD A PLAN. ALASKA SHOULD BE A LEADER IN THIS PLAN BECAUSE WE HAVE THE CONVENTIONAL, THE NON-RENEWABLE SUPPLIES, THE PETROLEUM. WE HAVE THEM UP HERE. AGAIN, THE HUNDREDS OF TRILLIONS OF CUBIC FEET OF CLEAN NATURAL GAS, THE BUILDINGS OF BARRELS OF OIL. WE ALSO HAVE THE RENEWABLES ALSO.WE HAVE THE LARGEST TIDES ON THECONTINENT, WE HAVE THE GEOTHERMAL, WE HAVE THE WINDS.WE HAVE ALL THESE ALTERNATIVE RENEWABLE SOURCE THAT'S ALSO CAN BE TAPPED INTO AS WE WORK COLLECTIVELY AND COMPREHENSIVELYON AN ENERGY PLAN.

BARTIROMO: SO AS A NATION WE NEED TO BE DOING EVERYTHING?

PALIN: WE NEED TO BE DOING EVERYTHING, AND PEOPLE NEED TO BE REALISTIC ALSO. AND THIS IS ALSO WHAT KIND OF SCARES ME ABOUT BIDEN AND OBAMA ALSO, IS IT SEEMS TO BE ALMOST A NAIVE NOTION OF THEIRS THAT WE CAN AUTOMATICALLY JUST JUMP RIGHT INTO A RENEWABLE SUPPLY OF ENERGY TO FEED HUNGRY MARKETS ACROSS OUR NATION WHEN THESE RENEWABLES ARE NOT YET PROVEN TO BE ECONOMIC NOR RELIABLE. WE'RE GOING TO BE IN A TRANSITION PERIOD FOR QUITE SOME TIME WHERE WE'RE GOING TO HAVE TO CONTINUE TO BE RELIANT ON CONVENTIONAL SOURCES OF ENERGY AS WE'RE WORKING ON THE RENEWABLES, AND WE CERTAINLY HAVE TO HEAD IN THAT DIRECTION ALSO. BUT IT'S GOT TO BE DOING EVERYTHING, EVERYTHING THAT WE CAN TO ALLOW THE DOMESTIC SUPPLIES, RENEWABLE AND NON-RENEWABLE, TO BE TAPPED, SOLUTIONS PLUGGED IN FROM BOTH THOSE ENDS, AND NOT JUST SKIP THE OIL AND THE GAS DEVELOPMENT AND THE COAL DEVELOPMENT ALSO THAT WE HAVE TO HAVE AS PART OF A COMPREHENSIVE PLAN. IT'S NAIVE TO THINK WE CAN GO RIGHT TO RENEWABLES AND THINK THAT'S EVER GOING TO WORK FOR OUR NATION TODAY AT THIS TIME.

BARTIROMO: LET ME ASK YOU ABOUT HOW YOU'RE REALLY PROTECTING PEOPLE'S ENVIRONMENT WITH THE TECHNOLOGY USED AND ALL THAT BEFORE I GET TO THAT LET ME ASK YOU ABOUT REALLY HOW MUCH POTENTIAL IS THERE BECAUSE SOME CRITICS SAY LOOK MAYBE THERE WAS OIL AND GAS THERE 20 YEARS AGO MAYBE IF WE STARTED A LONG TIME AGO IT WOULD HAVE BEEN OK BUT TODAY WE DON'T EVEN KNOW IF IT'S GOING TO YIELD THAT HOW VIABLE ARE THE FIELDS ON THE NORTH SLOPE IN TERMS OF EASING THE PRESSURE OF OIL AND GAS ON AMERICANS TODAY.

PALIN: WELL IT'S A NATURAL TO UNDERSTAND THAT AS MORE SUPPLY IS PRODUCED AND IS SUPPLIED TO THESE HUNGRY MARKETS PRICES WILL GO DOWN AND THAT'S A GIVEN THAT'S THE OLD SUPPLY AND DEMAND PRINCIPALS THAT CERTAINLY WORK BUT CRITICS ALSO SAY THAT 30 YEARS AGO THAT THE TRANS-ALASKA OIL PIPELINE WAS NOT GOING TO PRODUCE WHAT IT HAS PRODUCED TODAY IN FACT WE HAVE THE CRITICS FROM BACK THEN WHO HAD ANTICIPATED MINIMAL SUPPLY OF DOMESTIC ENERGY FLOWING THROUGH THE TRANS-ALASKA OIL PIPELINE THAT IS PRODUCED THREEFOLD WHAT HAD BEEN ANTICIPATED AND WHEN YOU CONSIDER THE GEOLOGY OF PRUDO BAY ANWR SOME OF THESE AREAS THERE OFFSHORE ALSO ALASKA CAN PRODUCE ENOUGH SUPPLY TO ALLOW TO A DEGREE SOME MORE ENERGY INDEPENDENCE FOR AMERICA YOU KNOW AND I LOOK AT THAT ARGUMENT THAT WHILE THERE MAY NOT BE ENOUGH TO AFFECT THAT TO SUCH A DEGREE AMERICA'S RELIANCE ON DIFFERENT ENERGY SUPPLIES AND I THINK WHEN ARE WE GONNA TRY THOUGH WHEN ARE WE GONNA TO BE ALLOWED TO START TAPPING INTO THE RESERVESTHAT WE KNOW ARE THERE GEOLOGISTS SEE THEM THERE AND THERE ARE MANY MANY UNEXPLORED AREAS WHERE WE ANTICIPATE HAVING MORE FINDS OF RESERVES THAT WILL PRODUCE MORE BUT I THINK SO WHAT IF WE'RE LOOKING NOW AND SAYING WE SHOULD HAVE DONE THIS 5 YEARS AGO WELL THEN LET'S DO IT TODAY AND 5 YEARS FROM NOW LET'S NOT LOOK BACK AND KICK OURSELVES FOR NOT ALLOWING THE SAFE, THE SECURE, THE ETHICAL DEVELOPMENTS THAT SHOULD BE ALLOWED TO TAKE PLACE TODAY.

BARTIROMO: BUT I MEAN HOW MUCH OF A RISK IS IT IN OTHER WORDS LET'S SAY HYPOTHETICALLY THAT THE FIELDS ARE NOT YIELDING WHAT'S PEOPLE EXPECTED HOW BIG OF A RISK IS IT TO GO IN AND JUST CHECK IT OUT?

PALIN: WELL WHEN YOU CONSIDER WHAT THE NEW TECHNOLOGY ALLOWS IN TERMS OF DIRECTIONAL DRILLING IN THE TINY FOOTPRINTS THAT ARE NEEDED NOW TO PRODUCE OIL AND TO PUMP THE GAS RESERVES ALSO IT IS NOT SUCH A RISK THAT IT CAN NOT BE TAKEN I AM CONVINCED OF THAT AND AMERICA NEEDS TO ALLOW I GUESS IF SOME CONSIDER A RISK THAT RISK TO BE TAKEN BECAUSE AGAIN IF WE DO NOT ALLOW THE DOMESTIC SUPPLIES OF ENERGY TO BE TAPPED WERE GOING TO BECOME MORE AND MORE RELIANT ON FOREIGN SOURCES OF ENERGY AND WE'RE A NATION AT WAR AND WE HAD BETTER NOT BE FIGHTING OVER ENERGY SUPPLIES FROM FOREIGN COUNTRY AND DANGEROUS REGIMES THAT DO NOT LIKE AMERICA WHEN YOU CONSIDER WHAT ALASKA HAS TO OFFER

BARTIROMO: AND THERE'S A LOT OF HOSTILITY OUT THERE AS YOU SAID HOW MUCH PRESSURE DO YOU FEEL AS A STATE TODAY I MEAN CHAVAS KICKING OUT CONNOCO PHILLIPS RIGHT OF VENEZUELA, BP HAVING BIG PROBLEMS IN RUSSIA IS THERE ADDED PRESSURE TODAY AS A RESULT OF THESE HOSTILITIES WE SEE AROUND THE WORLD TO DRILL IN ALASKA?

PALIN: THERE SHOULD BE ADDED PRESSURES THE COMPANIES THAT ARE TRYING TO OPERATE UNDER THESE FOREIGN REGIMES ARE ALSO IN A WORLD OF HURT WITH THE INSTABILITY WITH A VOLATILITY OF THE REGIMES AND THE COUNTRIES THAT THEY ARE IN HERE IN AMERICA WE HAVE STRICT STANDARDS OF COURSE WHEN IT COMES TO PROTECTING THE ENVIRONMENT AND PROTECTING THE WORKERS WITH OIL PRODUCTIONS IN ALASKA WE HAVE EVEN STRICTER STANDARDS THAN THE FEDS HAVE AND OUR ADMINISTATION WE HAVE REALLY BEEN WALKING THE WALK AND NOT JUST TALKING THE TALK ON THIS WE HAVE CREATED AN OFFICE EXCLUSIVELY FOR PIPELINE AND PETROLEUM INTEGRITY TO MAKE SURE THERE AREN'T THEY'RE WON'T BE THE COROSION THERE WON'T BE THE LEAKS THERE WON'T BE THE ADVERSE AFFECTS OF OIL PRODUCTION AND GAS PRODUCTION ON OUR ENVIRONMENT WE HAVE SOME OF THE STRICTEST STANDARDS IN THE WORLD IN TERMS OF PROTECTING THE WORKERS UP THERE ON THE NORTH SLOPE ALSO ALL THOSE THINGS THAT YOU'RE NEVER GOING TO FIND IN SOME OF THESE FOREIGN COUNTRIES THAT DON'T CARE AS MIUCH ABOUT THE ENVIRONMENT OR EVEN ABOUT THEIR WORKERS TO THE EXTENT THAT WE CARE ABOUT OUR ENVIRONMENT AND WORKERS SO THESE OIL COMPANIES ALSO I THINK MORE AND MORE ARE RECOGNIZING YOU KNOW LET'S LOOK AT OUR OWN BACKYARD LET'S LOOK IN ALASKA AND SOME OF THESE OTHER OIL AND GAS PRODUCING STATES AND LET'S START RAMPING UP THAT PRODUCTION AND THANKFULLY THEY ARE COMING TO THAT

BARTIROMO: HOW LONG DID IT TAKE THOUGH GOVERNOR I MEAN THESE ARE LONG TERM PROJECTS RIGHT? LET'S SAY YOU GET THE GO AHEAD TO GO AND ACTUALLY START ACTIVITY IN THIS AREA THIS YEAR OR IN 2009 WHAT WOULD BE THE VIABLE DATE THAT WE COULD ACTUALLY SEE THIS OIL FLOWING?

PALIN: YOU KNOW IT'S GONNA TAKE 5 YEARS MAYBE MORE YEARS TO HAVE A LOT OF THE OIL AND THEN THE NATURAL GAS THAT'S FOUND AT THE SAME TIME TO START FLOWING INTO HUNGRY MARKETS BUT AGAIN I SAY WELL BETTER TODAY BETTER NOW THAN NEVER THE TRANS-ALASKA OIL PIPELINE IS BUILT TO FLOW A HECK OF A LOT OF OIL IN FACT IT DOES NOT OPERATE AS SMOOTHLY WHEN IT IS ONLY HALF FULL. TODAY IT IS ONLY FULL THERE'S ONLY ABOUT 7OO,OOO BARRELS A DAY FLOWING THROUGH THAT THE OIL PIPELINE NEEDS MORE OIL FLOWING IN THERE SO THAT IT WILL TAKE FOR THOSE FIELDS TO BE TAPPED THE INFRASTRUCTURE IS ALREADY THERE THE OIL PIPELINE BEING HALF FULL IS MORE THAN ABLE TO INCREASE ITS CAPACITY AND LET MORE OIL FLOW THROUGH IT SO IN TERMS OF THE INFRASTRUCTURE ALREADY BEING THERE IN THAT 800 MILE LONG PIPE IT'S ALREADY THERE IT'S READY TO BE FED MORE PETROLEUM

BARTIROMO: OK SO BUT DO WE NEED MORE INFRASTRUCTURE BUILT I MEAN HOW MUCH MORE OF AN INVESTMENT ARE WE TALKING ABOUT WHEN YOU DO OR IF YOU DO GET THE GO AHEAD?

PALIN: WELL THERE'S STILL A LOT OF INVESTMENT THAT IS NEEDED THERE IS A LOT OF INFRASTRUCTURE THAT NEEDS TO BE BUILT AND ITS BILLIONS OF DOLLARS ALSO BUT AGAIN I SAY NOW BETTER THAN NEVER WE ALSO NEED TO TALK ABOUT OUR NATURAL GAS SUPPLIES ALSO TOO THOUGH WE'RE TALKING AT THIS POINT AND THE ALASKA STATE LEGISLATURE HAS JUST APPROVED A 40 BILLION DOLLAR NATURAL GAS PIPELINE TO BE BUILT TO FLOW VERY CLEAN VERY STABLE VERY SAFE SUPPLY OF NATURAL GAS INTO THE HUNGRY MARKETS ON THE NORTH AMERICAN CONTINENT THIS IS GONNA BE THE LARGEST PRIVATE SECTOR INFRASTRUCTURE PROJECT IN NORTH AMERICAS HISTORY THIS IS HUGE BUT ALASKA HAS THE NATURAL GAS RESERVES IT IS TIME TO TAP THOSE ALSO IN ADDITION TO RAMPING UP OIL SUPPLIES THE NATURAL GAS ALSO AND WE'RE UNDERWAY NOW WITH BUILDING THIS NATURAL GAS PIPELINE WE HAVE COMPETING PROJECTS WHICH IS KINDA COOL TOO BP AND CONNOCO PHILLIPS HAVE THEIR OWN IDEA ON HOW TO BUILD THIS NATURAL GAS PIPELINE AND THE STATE OFALASKA HAS OUR IDEA ON HOW TO BUILD IT AND THE TWO PROJECTS WILL COMPETE WITH ENOUGH CUSTOMERS FEEDING ONE OR THE OTHER PROJECT ONE OR THE OTHER LINES IN TEN YEARS WILL HAVE THAT LINE BUILT ALSO

BARTIROMO: WHAT KIND OF RELATIONSHIP DO YOU HAVE WITH THE CEOS OF THESE OIL COMPANIES ARE YOU IN TOUCH WITH THEM ALL THE TIME AS FAS AS WHAT THEY'RE DOING AS FAR AS WHAT THEY WOULD LIKE TO DO TELL ME ABOUT THE RELATIONSHIP OR THE COMMUNICATIONS THAT GO ON

PALIN: WELL YOU KNOW I THINK IT IS KINDA SYMBOLIC I THINK HERE IN ALASKA OF THE RELATIONSHIP BETWEEN STATE GOVERNMENT AND THE OIL INDUSTRY HERE MY NEXT DOOR NEIGHBOR IS CONNOCO PHILLIPS RIGHT THERE AND THEY'RE SKYSCRAPER IS WHAT I LOOK AT OUTSIDE OF MY WINDOW IT'S A RESPECTFUL RELATIONSHIP BECAUSE I RESPECT WHAT THESE COMPETITORS THESE CAPITALISTS ARE DOING AND THE CEOS OF THE BIG OIL COMPANIES OF COURSE ARE LOOKING OUT FOR THEIR SHAREHOLDERS THEIR MISSION IS TO BOOST THEIR BOTTOMLINE THEY'RE MISSION IS TO TAKE AS MUCH AS POSSIBLE AND LEAVE AS LITTLE BEHIND THAT'S WHAT CAPITALISTS DO SO I RESPECT THAT BUT I BELIEVE TOO THAT THEY RESPOECT MY POSITION AS A CEO OF THE STATE AND AS CEO I AM GONNA LOOK OUT FOR MY SHAREHOLDERS MY STAKEHOLDERS AND THAT'S THE PEOPLE OF ALASKA THOSE WHO LIVE HERE AND AMERICANS WHO ARE LOOKING TO ALASKA TO SUPPLY TO SUCH A GREATER DEGREE MORE DOMESTIC ENERGY SOURCES WHICH WE SHOULD BE ABLE TO DO SO IT'S A RESPECTFUL RELATIONSHIP I RECOGNIZE AS A FORMER OIL AND GAS COMMISSIONER AS A FORMER MAYOR OF A CITY WHAT THE OIL INDUSTRY DOES IN TERMS OF SUPPLYING ECONOMICALLY IN OUR STATE JOBS REVENUE FOR THE STATE FOR LOCAL COMMUNITIES I RESPECT THAT AT THE SAME TIME YOU KNOW MY BIBLE IN THIS JOB IS MY STATE CONSTITUTION THAT THE PEOPLE OF ALASKA OWN THE RESOURCES TO DEVELOP AND WHEN WE DEVELOP FOR REVENUE TO BE DERIVED FROM WITH THESE NATURAL RESOURCES IT'S GONNA BE TO THE MAXIMUM BENEFIT OF THE PEOPLE OF ALASKA SO THAT'S MY JOB AND I BELIEVE THEY CAN SEE THAT IN ME THE CEOS AND THEY CAN RESPECT THAT I'M DOING MY JOB.

BARTIROMO: AND THE PEOPLE WANT IT.

PALIN: ABSOLUTELY THE PEOPLE WANT THEY WANT THE RAMPED UP PRODUCTION AND THEY WANT THEIR SOVEREGNTY AS A STATE TO BE PROTECTED THEY WANT THAT CONSTITUTION FOLLOWED AGAIN THAT MEANS THAT WHEN WE DEVELOP OUR NATURAL RESOURCES IT IS TO BE FOR THE MAXIMUM BENEFIT OF THE PEOPLE OF ALASKA

BARTIROMO: YOUR HUSBAND WORKS IN THE NORTH SLOPE

PALIN: HE DOES HE'S UP THERE TODAY

BARTIROMO: WHAT'S HE SAY ABOUT IT? WHAT ARE SOME OF THE EXPERIENCES HE HAS HAD ON THE GROUND?

PALIN: HE'S SUCH A PERFECT EXAMPLE OF AGAIN SOME OF THE POSITIVES HERE THAT UM OIL INDUSTRY CAN BRING TO THE STATE IF THE STATE GOVENRNMENT IS WATCHING OUT FOR THE PEOPLE OF ALASKA AND COWTOWING OR CAVING JUST TO OIL INDUSTRIES NEEDS OR WANTS MY HUSBAND HE GREW UP IN RURAL ALASKA IN A NATIVE VILLAGE HE'S ALASKA NATIVE HE GREW UP WORKING WITH HIS HANDS AND BUILDING THINGS AND LEARNING HOW TO WELD AND LEARNING HOW TO PRODUCE AND LANDED A GOOD JOB UP ON THE NORTH SLOPE WHERE HE'S A BLUE COLLAR OIL FILLED WORKER HE'S SEPARATES THE OIL AND THE GAS AND THE WATER AND HE'S GOT ONE OF THOSE GOOD SLOPER JOBS IS WHAT WE CALL THEM AND IT'S VERY COMMON IN ALASKA THAT SOMEBODY LIVES A SLOPE LIFESTYLE THAT MEANS THEY WORK A WEEK ON THEY COME HOME FOR A WEEK GO BACK UP FOR A WEEK COME HOME FOR A WEEK IT'S KINDA COOL CUZ IT ALLOWS OUR SLOPERS TO LIVE THAT REAL ALASKAN LIFESTYLE THAT THEY REALLY LOVE THEYRE UP THERE FOR A WEEK PRODUCING FOR THE REST OF THE STATE AND THE NATION AND THEN THEY COME HOME AND IN MY HUSBAND'S CASE HE'S A COMMERCIAL FISHERMAN SO HE GETS TO CONTINUE THAT VOCATION ALSO SO HE'S A SNOWMACHINE RACER SO HE GETS TO CONTINUE THAT HOBBY HE GETS TO CONTINUE TO BE VERY INSTRUMENTAL AND AFFECTIVE AS A FATHER AND A COMMUNITY MEMBER AND OUR CASE AS ALASKA'S FIRST DUDE YOU KNOW THAT'S HIS ROLE ALSO BUT THAT'S WHAT THE SLOPE LIFESTYLE ALLOWS AND WE LOVE IT WHEN YOUNG ALASKANS RECOGNIZE THE OPPORTUNITY THAT THE OIL PRODUCTION ENVIRONMENT CAN SUPPLY THEM IN TERMS OF JOBS THESE ARE REALLY GOOD JOBS ALSO THEY PAY VERY WELL THEY PROVIDE GREAT BENEFITS OF COURSE THAT LESSENS THE BURDEN ON STATE GOVERNMENT ALSO WOULD HAVE TO PROVIDE THE BENEFITS IN SOME CASES IF THESE COMPANIES DID NOT SO I KNOW PERSONALLY HOW GOOD IT IS THESE OIL COMPANY JOBS THEY'RE GOOD MY HUSBAND'S CONCERN TOO THOUGH AND I THINK A LOT OF THIS HAS TO DO WITH WE BEING LIFELONG ALASKANS MY HUSBAND BEING AN ALASKAN NATIVE SO CONNECTED TO THE LAND AND TO THE CLEAN WATER TO THE CLEAN AIR THE WILDLIFE HE TOO PERSONALLY WANTS TO SEE EVERYTHING PROTECTED WE DO NOT WANT TO GIVE AWAY TO BIG OIL INDUSTRY ANY OF THESE ATTRIBUTES THESE BENEFITS ALASLA PROVIDES IN TERMS OF BEAUTY AND THE CLEANLINESS OF THIS AREA THE ABUNDANCE OF THIS AREA SO I THINK MY HUSBAND IS A REALLY GOOD EXAMPLE OF WHO SHOULD BE WORKING IN THIS INDUSTRY AND HIS HEART HIS PASSION BEING FOR SAFE SOUND ENVIRONMENTALLY FRIENDLY AND ETHICAL DEVELOPMENT OF OUR RESOURCES

BARTIROMO: INTERESTING. SO JUST TO EDUCATE OUR VIEWERS ON HOW IT IS DONE, HE IS SEPARATING THE OIL FROM THE GAS FROM THE WATER

PALIN: YEAH, CAUSE IT ALL COMES UP TOGETHER AND THEIR IN A BIG PLANT SOME OF YOUR PEOPLE WILL SEE HOW THIS OPERATION WORKS IN THERE, YOU KNOW WITH COMPUTERS AND WITH LEVERS AND WITH VALVES THEIR SEPARATING THE DIFFERENT SOURCES AND THEN THEY START FLOWING THEM THROUGH THE APPROPRIATE PIPES.

BARTIROMO: FASCINATING.

PALIN: YEAH, HE'S BEEN DOING THAT FOR 20 YEARS.

BARTIROMO: TELL ME ABOUT THE TECHNOLOGY. HOW HAS TECHNOLOGY CHANGED TO INCREASE THE FLOW OF OIL AND GAS AND MAKE THINGS MOVE ALONG THAT MUCH MORE EFFICIENTLY.

PALIN: IT IS AMAZING, THE TECHNOLOGY THAT'S CHANGED IN THE 20 YEARS THAT MY HUSBANDS WORKED UPON THE NORTH SLOPE ALSO. THE DIRECTIONAL DRILLING OF COURSE IS VERY SIGNIFICANT AND VERY IMPORTANT WHEN WE TALK ABOUT THE SMALLER AND SMALLER FOOTPRINT THAT THE OIL INDUSTRY NEEDS IN ORDER TO DEVELOP MORE AND PUMP MORE SOURCES OF ENERGY ALSO, YOU KNOW THE DRILL CAN GO DOWN AND IT CAN TAKE A DIRECTION WHEREVER IT NEEDS TO BE AND THAT'S CONTROLLED VIA COMPUTER UP OVERLAND AND IT CAN GO MILES NOW WITHOUT NEEDING TO DRILL OTHER WELL PADS. SETTING THOSE UP ON THE TUNDRA, NO YOU CAN HAVE ONE WELL PAD YOU CAN DRILL DOWN AND THEN TAKE ANY DIRECTION THAT YOU NEED TO FIND WITHIN THE ROCK, WITHIN THE SHELL, WHEREVER IT IS TO FIND THOSE SOURCES AND FLOW THEM.

BARTIROMO: THAT'S FASCINATING.

PALIN: IT IS FASCINATING, IT IS AMAZING AND I THINK AMERICANS DON'T REALIZE EITHER SOME OF THE TECHNOLOGY THAT CAN ALLOW FOR SAFE DEVELOPMENT, NOW SAFER AND MUCH SMALLER FOOTPRINT THAT IN THE PAST.

BARTIROMO: CAN YOU CHARACTERIZE WHAT IT WOULD MEAN FOR JOB CREATION IF WE WERE TO DRILL MORE?

PALIN: YEAH, OH, WE WOULD SEE THOUSANDS OF NEW JOBS AND THEN ON THE PERIPHERY, ALSO NOT JUST THE OIL AND GAS PRODUCTION JOBS THAT CAN RESULT FROM OPENING ANWR AND BUILDING A NATURAL GAS PIPELINE, BUT ALL THE SERVICE SECTOR JOBS ALSO, IT WOULD BE A TREMENDOUS BOOM TO AMERICA. NOT JUST TO THE STATE OF ALASKA, BUT TO OUR ENTIRE COUNTRY, YOU WOULD SEE HUGE PROGRESS AND YOU WOULD SEE ALSO MORE AND MORE, I BELIEVE OUR YOUNGSTERS, OUR STUDENTS, BEING INTERESTED IN BEING EDUCATED ON HOW THEY CAN SEIZE THESE OPPORTUNITIES THAT THESE OIL PRODUCTION JOBS CAN PRODUCE TO BECOME ENGINEERS, TO BECOME OIL AND GAS PRODUCTION OPERATORS, TO BECOME THE GEOLOGIST THAT WE NEED AND THEN ALSO ON THE PERIPHERY EVEN AROUND THAT TO GET A GOOD EDUCATION SO THAT THEY ARE NOT LEFT BEHIND. AND SOME OF THE OTHER JOBS TO THAT WILL RESULT FROM MORE PEOPLE COMING INTO THE AREA, MORE SERVICES NEEDED TO BE PROVIDED, SAY, MORE TEACHERS ARE GOING TO BE NEEDED IN THE AREA, MORE MEDICAL PROVIDERS. IT'S GOING TO BE WIN WIN FOR OUR NATION, IN TERMS OF EDUCATION, IN TERMS OF INFRASTRUCTURE THAT THIS WILL ALLOW TO BE BUILT, IN TERMS OF GOOD JOBS FOR AMERICANS.

BARTIROMO: AWAY FROM OIL AND GAS, WHAT IS THE SIGNIFICANCE OF THE OTHER RENEWABLE? HOW SIGNIFICANT ARE THE RENEWABLE PART OF THE STORY HERE IN ALASKA?

PALIN: ABSOLUTELY SIGNIFICANT, AND WE ARE PUTTING HUNDREDS OF MILLIONS OF DOLLARS ALSO INTO THE RENEWABLE SOURCE OF ENERGY TRYING TO FIND SOLUTIONS THERE ALSO, CAUSE AS YOU POINT OUT, IT'S GOING TO TAKE EVERYTHING TO GET AMERICA MORE SECURE AND MORE ENERGY INDEPENDENT. ITS NOT JUST GOING TO BE RAMPED UP OIL AND GAS PRODUCTION, SO WE ARE PUTTING OUR MONEY WHERE OUR MOUTH IS THERE ALSO, AND TAPPING INTO THE GEOTHERMAL POTENTIAL AND THE TITLE POTENTIAL, THE WIND POTENTIAL THAT WE HAVE HERE IN ALASKA. WE ARE TRYING TO DO ALL THINGS AT ONCE. SHORT TERM AND LONG TERM SOLUTIONS THAT WE ARE PLUGGING IN. SHORT TERM SOLUTION ALSO, ALASKA IS VERY BLESSED WHERE WE HAVE A STATE SURPLUS RIGHT NOW BECAUSE OF THAT HIGH PRICE OF A BARREL OF OIL. ITS A DOUBLE-EDGED SWORD. OUR STATE REVENUE, OUR COFFERS ARE SWELL, BECAUSE THE PRICE OF OIL IS SO HIGH, BUT ITS JUST DECIMATING SOME OF OUR COMMUNITIES AND SOME OF OUR FAMILIES AS THEY ARE PAYING SOME OF THESE OUTRAGEOUS PRICES FOR FUEL. SO AS OUR STATE COFFERS GROW THOUGH WE ARE WISE TO PUT THAT MONEY IN THE BANK, WISELY SAFE IT AND INVEST IT FOR WHEN THE PRICE OF A BARREL OF OIL ISN'T SO HIGH, BUT AT THE SAME TIME, TAKING SOME OF THAT SURPLUS INVEST IT IN THESE RENEWABLE PROJECTS THAT WE BELIEVE WILL BE PRODUCTIVE AT SOME POINT DOWN THE ROAD HERE IN THE FUTURE AND THE SAME TIME, BECAUSE AGAIN ALASKANS OWN THE RESOURCES WE DERIVE REVENUE OFF THESE RESOURCES WE HAVE A SURPLUS RIGHT NOW. WE ARE ALLOWING A LOT OF THAT REVENUE TO BE SENT BACK TO ALASKANS, INDIVIDUAL ALASKANS, THEY GET THAT THROUGH A PERMIT FUND DIVIDEND CHECK AND THEY GET IT THROUGH AN ENERGY REBATE IN A COUPLE OF WEEKS THEY WILL BE RECEIVING THAT CHECK. THEY ARE THE ONE WHO THE RESOURCES, AND ALSO, THEY CAN SPEND SURPLUS DOLLARS BETTER THAN GOVERNMENT CAN EVER SPEND IT, SO WE ARE SENDING THAT MONEY BACK TO THE PEOPLE.

BARTIROMO: QUESTION UNINTELLIGIBLE

PALIN: WHEN YOU CONSIDER THE PRICES THAT ARE PAID AT THE PUMP HERE TOO, AS THEY ARE IN THE REST OF THE US, PEOPLE ARE STARTING TO ASK WHY IS IT? THEY'VE BEEN ASKING IT THOUGH I THINK SINCE THE PRICE OF GAS HIT THE FOUR MARK. THEY ARE ASKING WHY IS IT THAT WE DON'T HAVE MORE SUPPLY FLOWING INTO THESE HUNGRY MARKETS, AND THEN AS MORE AND MORE PEOPLE REALIZE, YOU KNOW THAT 49TH STATE ALASKA, WE ARE READY, WILLING AND WE ARE ABLE TO SUPPLY MORE AND NATURALLY, A GREATER SUPPLY IS GOING TO HELP IN THESE MARKETS, DECREASE THESE PRICES. MORE AND MORE CONSITUATINS ACROSS THE NATION ARE STARTING OUT PRESSURE ON CONGRESS TO ALLOW THE DEVELOPMENT UP HERE IN ALASKA, THAT WE WERE SUPPOSED TO HAVE BEEN ALLOWED YEARS AGO. WE ARE A YOUNG STATE, THIS IS OUR 50TH ANNIVERSARY OF STATEHOOD, WHEN WE BECAME A STATE, WE ASKED THE FEDERAL GOVERNMENT LET US INTO THE UNION AND WE WILL BE AS SELF-SUFFICIENT AS POSSIBLE AND THE FED SAID YUP, COME ON IN, YOU WILL BE OUR 49TH STATE AND YOU WILL BE AS SELF-SUFFICIENT AS POSSIBLE. AND YOU HAVE TO DO THAT BY DEVELOPING THOSE GOD GIVEN RESOURCES THAT YOU HAVE IN ALASKA AND EVEN BACK THEN, 50 YEARS AGO, THERE WAS RECOGNITION OF THE WEALTH IN ALASKA, IN TERMS OF THE PETROLEUM, INTERIMS OF OUR MINERALS. THERE IS SO MUCH HERE TO OFFER, WELL FOR 50 YEARS WE HAVE BEEN FIGHTING THE FEDERAL GOVERNMENT, WE HAVE BEEN SAYING OK, WE WANT TO UPHOLD OUR END OF THE BARGAIN, LET US DEVELOP, UNLOCK THE LANDS UP HERE. AND IT IS STILL A CONSTANT STRUGGLE, WHETHER WE ARE EVER GOING TO BE ABLE TO OR NOT, BUT AS ALASKA HAS RELIED ON THE FEDERAL GOVERNMENT THEN TO PAY OUR BILLS FOR US, DESPITE THE HUGE AMOUNT OF WEALTH THAT WE HAVE HERE IN OUR NATURAL RESOURCES, WITH CHANGES IN CONGRESS, I THINK WITH CHANGES ON THE PRESIDENTIAL LEVEL ALSO, MORE PEOPLE ARE GOING TO RECOGNIZE ALASKA, YOU CANNOT BE SO RELIANT ON THE FEDERAL GOVERNMENT AND THE REST OF AMERICA TO PAY YOUR BILLS FOR YOU, YOU ARE GOING TO HAVE TO BECOME MORE SELF RELIANT. SO YEAH, NOW IS TIME TO START UNLOCKING YOUR LANDS, DEVELOP YOUR RESOURCES AND AT THIS TIME IN ALASKA, AND EVERYTHING IS ALWAYS ABOUT TIMING, IT IS PERFECT TIMING. WE ARE READY, WE ARE WILLING, WE ARE ABLE. WE ARE PROVING TO THE REST OF THE NATION THAT WE WILL HAVE THE SAFE, AND THE SOUND, AND THE ETHICAL DEVELOPMENTS AND THAT OVERSIGHT THAT'S NECESSARY TO ALLOW THE REST OF THE NATIONS TO SAY, OK, WE BELIEVE YOU ALASKA, YOU ARE GOING TO DO THAT RIGHT. AND WHAT WE HAVE DONE IN THE TWO YEARS THAT WE HAVE BEEN IN OFFICE HERE, MY ADMINISTRATION, CREATING THIS OFFICE JUST FOR PETROLEUM AND AND PIPELINE INTEGRITY AND HAVING INSPECTORS GO UP ON THE NORTH SLOPE AND MAKE SURE THAT THERE IS THE OVER SOUGHT. NOT JUST RELIANT ON THE BIG OIL COMPANIES TELLING US THAT THEY ARE PRUDENT AND THAT THEY ARE SAFE, BUT WE HAVE OUR OWN PEOPLE NOW UP ON THE NORTH SLOPE INVESTIGATING AND INSPECTING, MAKING SURE THAT AGAIN WE CAN PROVE TO THE REST OF THE NATION THAT THIS IS GOING TO BE SAFE DEVELOPMENT.

BARTIROMO: WELL CLEARLY ENERGY IS CENTRAL TO THIS PRESIDENTIAL ELECTION THIS YEAR, AND REALLY SO CRITICAL FOR THE COUNTRIES ECONOMIC DEVELOPMENT. WHAT DO YOU WANT THE CANDIDATES TO KNOW ABOUT THIS ISSUE?

PALIN: OH NOT ONLY THAT ALASKA HAS THE SOURCES OF ENERGY THAT ARE READY AND ABLE TO BE TAPPED INTO, BUT I WANT BOTH CANDIDATES TO KNOW THAT I AM VERY HAPPY TO SEE THAT EVOLUTION THAT BOTH OF THEM HAVE GONE THROUGH, BOTH OBAMA AND MCCAIN, IN TERMS OF THE OFF-SHORE DRILLING, BOTH OF THEM SEEM TO BE MORE OPEN-MINDED ABOUT THE IDEA OF SAFE OFFSHORE DRILLING THAN THEY WERE EVEN THREE MONTHS AGO, SIX MONTHS AGO. SO THAT'S ENCOURAGING CAUSE THEY, AGAIN THAT'S REFLECTING THE PRESSURE THAT CONSTITUENTS, THAT AMERICANS ARE PUTTING ON OUR PRESIDENTIAL CANDIDATES AND I WOULD LIKE TO SEE ALSO THOUGH FURTHER EVOLUTION IN THEIR THINKING ON ANWR. FOR BOTH OF THEM TO RECOGNIZE IT CAN BE DONE SAFELY AGAIN, ITS A TWO THOUSAND ACRE SWATH OF LAND IN A 20 MILLION ACRE PLOT OF LAND, TINY FOOTPRINT, IT CAN BE SAFELY DEVELOPED. ALASKA WANTS TO PROVE THAT WE ARE READY AND WILLING AND ABLE AND THAT WE ARE GOING TO MAKE SURE THAT THERE ARE THE STRINGENT OVERSIGHTS THAT ARE NECESSARY. SO I'D LIKE TO SEE BOTH CANDIDATES EVOLVE INTO THAT THINKING ALSO.

BARTIROMO: HAS SENATOR MCCAIN APPROACHED YOU TO BE HIS VP?

PALIN: WE HAVE CHATTED A COUPLE TIMES, JUST ON ENERGY ISSUES IN ALASKA AND MAYBE THE FUTURE OF ALASKA AND PEOPLE IN ALASKA, WHAT ALASKANS CAN DO TO CONTRIBUTE AND TO HELP. THAT YOU KNOW, YOU'LL HAVE TO ASK SENATOR MCCAIN, HIS PEOPLE WHAT THEY ARE THINKING ABOUT THE VP BUZZ.

BARTIROMO: WOULD YOU WANT THAT?

PALIN: YOU KNOW, I GO BACK AND FORTH ON THINKING WOULD I BE ABLE TO HELP AND CONTRIBUTE MORE AS THE GOVERNOR OF THE STATE OF ALASKA, WHICH I AM NOW AND I THINK THAT WE CAN DO, HELP THE NATION MORE, BECOME MORE ENERGY INDEPENDENT AND BECOME MORE SECURE, AND I SAY THIS AS A MOM ALSO. MY SON, HIS STRYKER BRIGADE -- HE'S IN THE U.S. ARMY, HE'S 19 YEARS OLD. HE'S A KID. HE'S A GOOD AMERICAN KID SERVING IN THE ARMY FOR THE RIGHT REASONS. HIS STRYKER BRIGADE WILL BE DEPLOYED SEPTEMBER 11th.THAT'S COMING UP HERE SHORTLY.AND I THINK, AGAIN, IF WE'RE FIGHTING AT ALL OVER FOREIGN SUPPLIES OF ENERGY WHEN DOMESTICALLY AGAIN RIGHT HERE IN ALASKA WE HAVE THE ENERGY SUPPLIES THAT COULD AS WE PROGRESS WITH MORE DEVELOPMENTS REPLACE SOME OF THOSE SUPPLIES WE BETTER NOT BE AT WAR OVER THIS CAUSE I AM A MOM AND MY SON IS GOING OVER TO IRAQ AND I WANT TO MAKE SURE THAT WE HAVE A PLAN THERE. SO I THINK, AS A MOM, AND AS A GOVERNOR, WHERE CAN I BEST BE ABLE TO HELP TO CONTRIBUTE. I THINK TODAY, WHERE I AM RIGHT NOW IS PROBABLY WHERE I CAN CONTRIBUTE MOST, SO THAT'S MY ANSWER TO THE VP THING.

BARTIROMO: GOVERNOR WOULD YOU LIKE TO ADD ANYTHING ELSE, DO YOU THINK WE HAVE HIT ON ANYTHING, EVERYTHING THAT WE SHOULD BE HITTING ON WITH REGARD TO OIL AND GAS DEVELOPMENT IN ALASKA.

PALIN: I THINK ITS SO OBVIOUSLY EVIDENT THAT YOU HAVE DONE ALL OF YOUR HOMEWORK, AND I THINK THAT IS VERY, VERY IMPRESSIVE, CAUSE A LOT OF FOLKS COME UP HERE AND THEY HAVE ABSOLUTELY NO IDEA WHAT THE OIL PRODUCTION, WHAT THE ENVIRONMENT IS LIKE AND I ESPECIALLY APPRECIATE YOU ASKING WHAT DO ALASKANS FEEL ABOUT OIL PRODUCTION AND DRILLING. THAT IS SIGNIFICANT BECAUSE ALSATIANS DO WANT TO CONTRIBUTE MORE. WE DO WANT TO BE SEEN AS CONTRIBUTORS AS PRODUCERS BECAUSE WE HAVE THESE SUPPLIES OF ENERGY. WE DO NOT WANT OUR COUNTRY AND OUR OTHER 49 STATES, OUR NEIGHBORS, WE DO NOT WANT OTHERS TO HAVE TO FEED OUR MARKETS FOR US. THOSE OTHERS ACROSS THE SEA, ACROSS THE LANDS WHERE WE SHOULD BE ABLE TO REPLACE THOSE FOREIGN SOURCES OF ENERGY. ALASKA SHOULD BE CONTRIBUTORS, WE SHOULD BE LEADING IN AN ENERGY POLICY THAT ALLOWS FOR THE SECURITY THAT OUR NATION NEEDS AND FOR MORE PROGRESS IN OUR NATION ALASKA IS READY TO DO THAT.

BARTIROMO: IT IS AMAZING THAT IT HASN'T HAPPENED, IT REALLY IS.

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