Sen. Wielechowski Calls on Feds to Share Revenue From Offshore Oil Development with Alaskans
JUNEAU - Senator Bill Wielechowski (D-Anchorage) introduced a resolution today urging the federal government to share revenue it receives from oil and gas leasing off Alaska’s coast.
This would put Alaska on par with Alabama, Louisiana, Mississippi, and Texas, which receive 37.5 percent of the revenue from oil production in federal waters off their coasts.
“Alaska deserves the same treatment as other oil producing states,” Senator Wielechowski said. “As offshore oil and gas production gets underway in the Arctic, Alaskans deserve to be compensated for their contribution to the nation’s energy supply and security.”
There are currently 670 active oil and gas leases off Alaska’s coast, covering 1.7 million acres. These lease sales have generated billions in revenue for the federal government.
Additional lease sales are scheduled for 2016 in the Chukchi Sea and 2017 in the Beaufort Sea. SJR 5 advocates for fair and equitable treatment for Alaska and other coastal energy producing states.
“Alaskans will help provide the infrastructure to get offshore oil to market and share in the environmental risks of development off our coast,” Senator Wielechowski added. “Therefore a share in the revenue is appropriate and long overdue.”
A 2008 lease sale in the Chukchi Sea generated $2.6 billion for the federal government. Had the same share been in effect for Alaska as other states enjoy, Alaskans would have received nearly one billion dollars.
Posted: January 25, 2013