Thursday, April 21, 2011

The Governor's Oil Tax Reform Legislation; a timeline

Senators Stedman & Stevens have stated that the Senate did not have enough time to take up SB 49 the Governor's oil tax reform bill. Here is a combined timeline from both HB 110 & SB 49:

Click on spreadsheets (.jpg) to view in full screen

Sunday, April 10, 2011

A Competitive Review - What is it

by Deborah Brollini

Sen. Lesil McGuire’s SCR 4 (now incorporated into Section 4 of Draft CS SB 85 version E 3-24-11), establishes an Oil and Gas Competitiveness Review (OGCR) Board. The purpose of the Board is to review and provide recommendations to the Legislature each December 1 on steps to encourage on-going long term investment in the development of the state’s oil and gas resources. In many respects, the purpose of the Board is much the same as the Permanent Fund Corporation Board. The PFC Board is designed to oversee and maximize the investment of Alaska’s Permanent Fund. The OGCR Board is designed to monitor and offer recommendations to the Legislature on steps designed to maximize the investment made in Alaska’s oil and gas resources.

The OGCR Board is proposed to be composed of selected Legislators, Commissioners and members of the public. As with a similar effort in Alberta that resulted in restoring oil and gas investment to the Province after a substantial downturn, the purpose of the OGCR Board is to create an ongoing body whose job it is to monitor Alaska’s position in the world oil and gas industry, and provide useful and, most importantly, ongoing insight to the Legislature on that subject. One of the anticipated results would be to lessen Alaska’s dependence on “Outside consultants” to help identify the state’s position in the oil and gas industry, and to significantly increase Alaska’s – and the Legislature’s – home grown ability to provide the same insight.

Senator McGuire spoke at a luncheon on March 30, 2011 about how Alberta reviewed their oil and gas tax policy and its global competitiveness which resulted in their reducing of their oil taxes. Alberta raised their oil taxes the same time Alaska did in 2007, and the industry and jobs flooded out of Alberta. Alberta was able to turn their investment climate around in just a few short years, and Alberta is now booming with capital investment and jobs. Here is the audio from Senator McGuire's speech on March 30th, 2011.

Moving on a competitive review will send a strong signal to the oil industry that Alaska is serious about providing predictability in the state's tax structure, and will provide a positive investment and regulatory climate for the industry to thrive, and where the citizens of Alaska benefit. Alberta's competitive review was completed in six months, and their government was able to act quickly to reduced their taxes which incentivized the industry to return. Resulting in billions of dollars of investment that moved through their entire economy. A competitive review is a long-term solution for Alaska.

Click on "full" on the bottom of each document to view in full screen mode.

Alberta Slides - Competitive Review

Alberta Briefing

Saturday, April 9, 2011

Alaska Native Claims Settlement Act and the Trans Alaska Pipeline

The Trans Alaska Pipeline would never have happened without the passage of the Alaska Native Claims Settlement Act. (ANCSA) The pipeline and the oil wealth it brought laid the foundation for Alaska’s modern economy, and ANCSA today is laying the foundation for Alaska’s future.

Former US Senator Mike Gravel, North Slope Mayor Edward Itta, oil historian Jack Roderick, and natural resources writer Tim Bradner discussed ANCSA and our pipeline at a forum held at the University of Alaska Anchorage on April 8, 2011.

Audio Part 1

Audio Part 2

Thursday, April 7, 2011

HB 110 Call to Action - Alaska State Senate

Your Alaska Energy Dudes and Divas team is united in support of HB 110, the Governor's oil tax reform bill. Please take the time to email state senators, and let your voice be heard. Senators already know the statistics, and data regarding ACES, and the potential shutdown of the Trans Alaska Pipeline (TAPS). As always be respectful, and no rhetoric

Highlight, cut and paste into your email:;;;;;;;;;;;;;;;;

Sunday, April 3, 2011

RIP Trans Alaska Pipeline

Tom Barrett, President of Alyeska Pipeline Service company presented and testified to House Finance on March 18, 2011 regarding the state and fate of the Trans Alaska Pipeline (TAPS).

Based on Mr. Barrett’s testimony of 640,000 barrels per day, Alaska Energy Dudes and Divas prepared the following projections using a 6% decline rate through 2025.

Tom Barrett closed his testimony with the following remarks:

"We need more oil in our pipeline. And as the TAPS operator, I would hope the Legislature would attach the same urgency to this issue that Alyeska and contract employees attached to restoring service in January. We need your help. TAPS viability depends on political will for Alaska oil development.

We need your support for increasing safe and responsible production in Alaska. It is urgent and it is critical.” The backbone of our economy is jeopardy and we have senators who are bound and determined to let the pipeline dry up and therefore throwing Alaskans and our economy under the bus."

Oil tax reform must be addressed this legislative session. Your Alaska Energy Dudes and Diva's team is united in support of HB 110, the Governor's oil tax reform bill. We urge you to contact your senators and convey your support for HB 110.