In Isaac's defense (it's been a day of firsts ), I don't think you completely understand what the term "state-run" means. A truly state controlled and run natural resources program would involve a state entity (see CNOOC for example) owning the land (or negotiating an oil lease with whomever), owning the gear, doing the actual drilling, taking the profits and inserting them back into the government coffers. What's happening in Alaska is nowhere near that. Private enterprise (let's say BP, less for me to type) finds oil in land owned by the State. The State and BP jointly negotiate a oil lease that gives the State a certain percentage of oil extracted. The State, seeing (correctly) that they are beholden to the people of whom the land belongs, share the profits accordingly. So is it socialism? A form, yes. You might say it's the reverse of state-run health care. The two really share no distinct similarities other than everyone gets a benefit from the goverment in the end, through wildly different means. Agreed. The money-for-oil program has been around for ages, I don't feel like looking up the exact time. I have no interest in Alaskan politics, so I can't argue one way or another.