Posted on 04/01/2011 5:27:36 AM PDT by thackney
A high-stakes political battle is being waged in Alaska over whether to cut oil production taxes, an issue that could determine whether the trans-Alaska pipeline keeps pumping billions of dollars into the state’s coffers.
On one side are Gov. Sean Parnell, top House Republicans and the oil industry, who argue that the current tax structure is stifling investment and must be changed to boost oil production and avert a now-looming shutdown of the pipeline that carries at least 10 percent of the nation’s crude oil production, on average.
On the other side are House Democrats and leading senators, who say the Parnell administration hasn’t justified the need for tax cuts and credits that could cost up to $2 billion a year, and they question what — if anything — the state will get in return.
(Excerpt) Read more at fuelfix.com ...
That's a nice sounding euphemism. I always knew the main problem with Soviets was they had a bad PR agency that didn't give nice sounding names to things.
bfl
People that work in the oil industry want the tax reduction, I don't blame them either. I want to see AK gets it's value out of our oil so as to benefit the state and to my kid's kids.
Once they have spent the 14 billion, then calls for state taxes will begin and the repubs will be held accountable for their actions. Now the fun begins, oil industry will try buying off Senate over the nx 2 years like they have bought off the legislature.
I remember when the state govt spent 10 million trying to throw the "spend the PFD for good causes" referendum in late 90's. The people voted 87% against it. This tax reduction is on the same order and will in the end blow up in the REpubs faces. Then the Oil Industry will throw money to buy off the dems; how it works up here.
Pay attention to what Palin has to say. She's the only one's perspective that I would trust. If she says the tax reduction is a good thing for Alaska and it's people, you'll never hear a bad word from me about it. I doubt she will say that though. Boy we need her back as governor up here, Parnell is a crook like all the rest we have had over the years.
Next year versus the next 20 years, I believe they will benefit most from getting a tax structure more in line with other areas.
It may not be the most popular opinion in Alaska today. If they don't change it; I suspect a decade from now it will be.
Kind of like what Whittier went through with their cruise ship head tax. Sure they were far closer to Anchorage than Seward. But it's a pretty bus or train ride and that is where the tourist went for a decade.
I think you will never hear her say good or bad about ACES again. I would like to be wrong about that, but I doubt it will happen.
Regardless of her opinion today, it would draw a spotlight to the profit tax increase she proposed and was put in place while she was in office.
That is a contradictory stance with the opinion of most the base who support her today. Of course that is only my opinion and there are many that will disagree me.
You can bet during the primaries, her opponents will bring it up.
I think she could only be hurt by either being for or against it today. If for it, she can be shown to support a rather high tax in today's market. If against it, it was her proposal in the first place.
I think she will never address again. And regardless of her opinion today, I would like to be wrong that she won't respond.
I think she could only be hurt by either being for or against it today. If for it, she can be shown to support a rather high tax in today's market. If against it, it was her proposal in the first place.
I think she will never address again. And regardless of her opinion today, I would like to be wrong that she won't respond.
The late great Pissant called Palin; “McCain in a skirt”.
Her record and actions do indicate that overlook. Her popularity is also slipping fast in Alaska as well as other Western States;
http://publicpolicypolling.blogspot.com/2010/12/for-palin-theres-no-place-like-homein.html
I don't mean to trash her. She has plenty of good qualities in her leadership. I disagree with what she did on this topic. I am likely quite biased on this topic as well.
Production has been declining for more than a decade. Drilling new wells has been declining in recent years, even as the world price of crude has been rising and with tax incentives for drilling and production in Alaska’s oil tax laws.
The immediate tax issue should be one of a course correction.
Get rid of “tax incentives” and “tax credits” for oil production. The world oil price is incentive enough. But, also encourage as much production as possible, and thereby as much revenue from production as possible, by lowering the oil taxes as well.
It might be time for Alaska to consider getting out of the oil business.
It could have all it’s royalty rights, now and into the future, sold in a giant “public offering”. At this time with oil prices so high there would be no lack of takers. Then it can convert the proceeds of the sale to a huge endowment fund and secure a steady annual revenue stream out of that fund, instead of depending on the ups and downs of world oil prices; and considering that’s its oil resources may be on the declining edge of supply.
In other words - convert as much of its “rights” as it can - while prices are high - into secured diversified assets now, as declining production brings continuing declining revenue.
Thank you. I’m glad to be wrong about her not responding.
I don’t agree with her on this topic, but I don’t agree with anyone on everything.
I also agree, that Palin has good qualities, but she has taken many wrong turns and has done things that are not at all in line with Conservative thinking. I won't go into detail, we know what some of those are from being here as long as we have.
I have moved into the Williston Basin myself and found a good home, so I was not hurt too badly with what Palin did in Alaska. I was about ready to move out of the State anyway. One can only live in the Dark and feast-or-famine kind of world for just so long. Resident Alaskans who have been there their entire life would disagree, but they are the usual kind who live in Villages or subsist in the remote regions with fishing, guiding/hunting or tourism.
The feds own the mineral rights to the federal lands.
The natives own the mineral rights to the native lands.
The state owns the mineral rights to the state and privately held lands.
Federal Government owns about 60% of Alaska. Natives own almost 12%.
http://dnr.alaska.gov/mlw/factsht/land_own.pdf
That I how I understand it myself.
The Oil Companies not only pay a royalty to those 3 entities, they also pay the State and the residents of the state, through the Permanent Fund.
Alaska is one of the few states obligates the Oil Companies to so many outside taxes, fees and charges for producing their Oil. It is extremely difficult for them to make a profit, regardless of the price. Many have indeed pulled out for Canada, North Dakota, Nebraska, etc,.
They are still stuck with all that invested equipment and infrastructure and must remain, but they do so with just operating at a minimum, to reduce their losses.
It’s a sad thing to see an otherwise formerly healthy industry get choked to death, even with $106 Oil.
You see, in Alaska; the state & it’s people own the mineral wealth underground over entire state; not land owner like in North Dakota.
I forgot to add that although there are some taxes paid to the state will getting oil from federal land, not all state taxes apply and certainly not the royalties.
But very little Alaska oil is from federal today. A bit offshore is all I think.
ANWR is not open and NPRA has been delayed for permits for years even though leases were sold many years ago. More of those so called idle leases I suppose.
Great. You know what? We should put that system in place for the entire United States. The state can own all the profitable assets and then no one will ever have to pay taxes again.
It's brilliant. Why didn't humans ever come up with this system and implement it before somewhere?
Oh, wait.
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