“Now maybe I can get you to understand. After they bought the lease, spent the money on drilling and building infrastructure, then Alaska raised the tax rates.”
Welcome to the world the rest of us deal with every day in business!!
As a financial advisor I deal with CHANGING tax rates, rules and compliance issues all the time. My underlying point is still valid:
If the rising world price of oil is not enough to offset these higher rates, look elsewhere. Like no other industry has had to write off sunken costs of an investment that has gone wrong because the rules changed . . .
They have. That is the point. While other areas in the US and other countries have a boom going on in new drilling for oil, Alaska lags greatly. While their state house and senate argue on and on, the problem remains. The current governor has been trying to lead them to get realistic but has been ineffective.