It is ironic that a Governor who is trying to increase Alaska’s competitiveness for oil investment dollars with the one hand is undermining it with the other. Yet, that is exactly what Governor Parnell is preparing to do in the coming legislative session.
The Governor correctly has identified Alaska’s current oil tax structure as an impediment to attracting the investment dollars that Alaska needs to stabilize Alaska’s current oil production levels. Most anticipate that he will announce specific proposed reforms to address the problem sometime this coming week. Continue reading
Thoughts on Alaska Oil & Gas 
The Fourth in the Alaska Business Monthly Series: “Alaska Oil Policy| Achieving Alignment” (from the January 2013 Alaska Business Monthly)
The last column in this series (“Out of Alignment,” Alaska Business Monthly, November 2012) focused on the reasons why Alaska oil policy is misaligned with the objective of maximizing the development of the state’s oil and gas resources.
The column discussed the state’s attempted use of two tools—tax credits and direct regulatory intervention—to steer investment to Alaska and why those tools have failed to produce significant results in terms of increased production. As I explained, the state’s use of the tools has been similar to backseat driving—and just about as successful.
The column also briefly mentioned a potential solution to the state’s alignment problem—developing a means for the state to co-invest alongside industry in the development of the state’s oil and gas resources. This month’s column further explains that concept. Continue reading →
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Posted in Published Commentaries, The Monthly Lead/Alaska Business Monthly