Tuesday, August 16, 2011

Alaska Missing Out Due To High Taxes -- Yes, This Is A Bakken Story

Alaska governor wants to cut taxes to encourage oil production. The senate disagrees.
Parnell's bill, which the Department of Revenue estimated could result in more than $8 billion in lost production tax revenue to the state over the next five years, passed the Alaska House of Representatives this spring. But state senators resisted and the bill didn't make it very far in the Senate.

Parnell's plan still has little support in the Senate. Some senators cite Alaska Department of Labor employment figures that show oil industry employment up around record levels.

The Senate Finance Committee has paid for a review of what is happening with oil employment in Alaska, including data showing nearly half the North Slope jobs go to nonresidents. The review, by the McDowell Group of Juneau, is supposed to be turned in to the Legislature in December.

Advocates for lowering Alaska's tax attribute the increased jobs to maintenance, rather than production, and say Alaska is missing out on the kind of drilling boom enjoyed by North Dakota.
The North Dakota legislature should take note.
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1 comment:

  1. AnonymousAugust 16, 2011 at 10:33 PM

    Companies have gone to Alaska to drill oil wells BECAUSE of ACES, and because of the oil.

    "As Southcentral Alaska prepares for an increase in oil and gas exploration and development in the Cook Inlet basin, operators on the North Slope and nearshore Beaufort Sea are preparing for what promises to be one of the busiest exploration seasons since 1969, when 33 exploration wells were drilled after the discovery of the Prudhoe Bay oil field."

    http://www.adn.com/2011/08/13/2013876/slope-exploration-season-looks.html



    http://conservatives4palin.com/2011/08/a-busy-upcoming-oil-exploration-season-proves-the-success-of-aces.html

    So the ND legislature should cut the oil production taxes because the tax has kept oil companies from drilling? Really? No. Not really.

    https://www.dmr.nd.gov/oilgas/riglist.asp

    ND should consider adopting a sensible rational fair smart oil production tax based on ACES.

    Anon 1

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