What I'd like to see is for Alaskans to come up with enough entrepreneurial spirit to set up an oil refinery and make their own petroleum products. No need to involve the government. Set up a joint venture of private companies.
Is there a reason why they shouldn't? Oh, wait Access to the pipeline, of course. Has anyone looked at the antitrust angle? And if the judges aren't agreeable, that just ups the barier to entry, but I think the demand will easily meet it. Build another pipeline! You'd probably have to bring in corporate partners, or at least massive vulture capital, but life's not always fair, and this is surely the lesser evil.
Oh, wait. Those damn environmentalists. Maybe it will need a revolution after all. Line up all the tree huggers against the wall and shoot them.