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In Alaska, everyone’s in the oil business

 
Keep Alaska Competitive - Vote No on 1
April 8, 2014
The permanent fun hit $50 Billion! Let's
                        keep it growing.

In Alaska, everyone’s in the oil business

Richard Weldin, a 20-year Palmer resident and founder of Weldin Construction, authored an opinion piece in the Frontersman titled “In Alaska, everyone’s in the oil business.”
“Both my wife and I are lifelong Alaskans and the proud recipients of 31 years of Permanent Fund Dividends that now total $35,343.41 for each of us,” Weldin writes.
“Ditto for two of our three children.
Click
                                    here for the full report
“While it’s great to get that annual deposit of oil money — and we’ve already signed up for this year’s — it’s more important to remember that this state runs on oil and a healthy oil industry means a healthy Alaska.
“That’s why my wife and I are so concerned about Ballot Measure 1 on the August primary ballot. Ballot Measure 1 would repeal the oil tax reform the Legislature spent three years crafting and return Alaska to its failed tax policy called ACES.”
Well, maybe not boogie … but we’ve put together a terrific presentation to explain the importance of oil to our state and how oil tax reform is making a difference. To schedule a presentation for your company, friends, and professional group – or to get trained yourself to give the presentation – contact Elizabeth Stevens at 907-249-0277 or estevens@lynden.com

Repsol in Alaska because of oil tax reform

When the state Legislature took up legislation to change the old tax policy called ACES, Repsol decided to gamble on Alaska.
Repsol is a Spanish company headquartered in Madrid with more than 25,000 employees in 30 countries around the world.
Bill Hardham, manager of Repsol’s North Slope operations, told the Alaska Support Industry Alliance that the company turned down earlier opportunities to purchase leases in Alaska because of the tax structure.
“Oil tax reform is vitally important to Repsol,” Hardham said. Oil tax reform puts Alaska in line with other areas of opportunity. A competitive tax structure allows marginal fields to be developed. A discovery that wouldn’t have been commercial under the old tax law might be commercial under the new. Commercial projects get developed.
“Predictability of the regulations and the tax structure is key to making investment decisions. To invest the hundreds of millions of dollars to bring a field online, a company needs to have reasonable assurance that the tax structure is stable,” he said.
“We were disappointed when the referendum was placed on the ballot, but we are hopeful that voters will Vote No on One and will support investment in Alaska,” Hardham said, because “Repsol wants to be in Alaska for the long haul.”
Repsol has drilled five wells over the past two years and plans three wells this season. It has an interest in 208 offshore blocks and 164 onshore blocks. Click here to see the complete Repsol presentation.
If oil production
                        continues to decline, the visitor industry will
                        suffer through higher taxes on cruise ships,
                        docking fees, hotel bed tax and property tax,
                        according to AlaskaACT.

AlaskaACT joins Vote No on 1 initiative

The Alaska Alliance for Cruise Travel (AlaskaACT) added its voice to Vote No on 1. AlaskaACT is an independent group of Alaskans that formed in 2009 to support the cruise industry in its efforts to keep Alaska competitive in the global tourism marketplace.
"We have seen what happens when the economic environment becomes too expensive to compete with global marketplaces – cruise ships move to different destinations, which then affects all large and small tourism businesses. Tourism investment and development will decline. The same thing will happen to the oil industry.
For these reasons, the founding members of AlaskaACT have joined the Vote No on 1 initiative as a group and individually to support your efforts to increase oil production and to create a better investment climate for Alaska.
If oil production
                        continues to decline, the visitor industry will
                        suffer through higher taxes on cruise ships,
                        docking fees, hotel bed tax and property tax,
                        according to AlaskaACT.

1 rig = 1,000s of jobs across Alaska

Both ConocoPhillips and BP are each adding two new rigs to their North Slope operations, thanks to oil tax reform. Each rig delivers a big economic bang.
“Each rig employs 100 people on the Slope, plus other jobs in Anchorage for operations and designing wells. In all, a single rig adds a couple of hundred jobs to the Alaskan economy,” BP Alaska President Janet Weiss told the Anchorage Chamber of Commerce.
“Each rig is also directly supported by about two dozen other contractors and vendors, for everything from drilling fluids and donuts to roads and moving rigs,” she added. “All of these companies need business insurance, banking, telecommunications, legal services, safety equipment and shipping – goods and services from businesses like yours. Their employees and their families buy houses and cars, clothing and TVs, groceries and gas. They need plumbers and electricians. They go out to dinner and the movies. They visit doctors and dentists.
“Those 100 rig jobs translate into hundreds more on the Slope and thousands more across the state. Those are jobs for generations of Alaskans – for your kids and grandkids and your employees’ and friends’ kids and grandkids.”
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email: info@keepalaskacompetitive.com   •   phone: 907-569-7070   •   

 

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