Daily Archives: May 6, 2013

Alaska Oil| Missing the point …

As reported on these pages, yesterday the Government of Norway announced that it was increasing its oil tax rate a moderate amount.  In reporting on the increase we explained that it had to do mostly with the Government’s attempt to balance activity between the country’s petroleum and non-petroleum sectors  and warned that the increase had very little relevance to Alaska’s continuing debate over oil taxes.

Indeed, if there is any relevance, the Government’s action re-enforces Alaska’s use of oil taxes to affect economic activity.

As reported in the story by Financial Times on the increase, and as we explained in the column yesterday, the Government is enacting the tax increase consciously in order to slow activity in the oil sector.  “Projects in Norway’s offshore sector, which accounts for a fifth of the country’s gross domestic product, have run into huge delays and cost overruns, reducing government revenue ….” Continue reading