Doesn’t look like Big Oil is leaving

To the editor:

The oil industry has launched a campaign to force Alaska’s legislators to lower oil taxes. It is called “Faces of Aces” and claims that federal, state and local government taxes, plus royalties, equals 70 percent of the industries’ take. But there is no compensation for the state, not even a promise of more drilling. Governor Parnell’s bill, that lowers taxes by allowing tax rebates for companies that drill in Alaska, is a much better deal.

It is interesting that the world’s longest offshore operators (Statoil ASA) has traded shares of its Gulf of Mexico leases to Conoco Phillips, for 25 percent share in 50 of it’s Chukchi Sea oil leases. This will increase Statoils’ holdings in that area. Conoco will operate the leases and plans to drill in 2012.

Shell Oil also has many leases offshore of Northwest Alaska. This doesn’t sound like Big Oil is planning to leave anytime soon.

Alaska’s legislators had better take a long hard look at what is being affected, from all sides, and not panic into giving away what has been negotiated in the past. Alaskans are anxiously awaiting its decision.

Ken Wright

Knik River