See How Canadian Natural Resources Minister Joe Oliver Supports Greater Investment
See Senator Cathy Giessel’s Investment Climate Commentary
See Steve Forbes’ Alaska Investment Climate Commentary
See CEA Energy News Links – Congressman Doc Hastings Says Obama Rhetoric Wrong
| Alaska Dispatch Commentary |
Invest in Alaska?
Commentary by
Alex Gimarc
Some Alaska Legislators are working furiously to counterbalance Governor Sean Parnell’s call for a cut in taxes on oil production from the North Slope.
Earlier this week, Senator Hollis French (NGP Photo) gave a floor speech expressing his views on a repeal of the ACES tax on oil produced from North Slope oil fields. In the speech, he demanded that the producers specifically provide a list of all projects that they are unable to do under the existing tax structure. Along with that list, they are to provide how much each project will cost and how much oil it is intended to produce. Essentially, French proposes burying the producers under yet another requirement to provide a pile 
of paperwork detailing what they want to do an what they expect to get out of new projects. After creating the paperwork, the producers are expected to show up, hat in hand, and await a ruling from on High. (Cartoon by Chad Carpenter, for this webpage, 1-27-12)
of paperwork detailing what they want to do an what they expect to get out of new projects. After creating the paperwork, the producers are expected to show up, hat in hand, and await a ruling from on High. (Cartoon by Chad Carpenter, for this webpage, 1-27-12)Is this the way to treat those who invest in Alaska? Senator French is tempting the producers to take their investment dollars – and taxes and royalties paid to the State of Alaska – elsewhere. Senator French is simply making it more expensive and risky to invest in our state.
Not to be outdone, Representative Les Gara (NGP Photo) is-1.jpg)
proposing legislation that will get the State into the business of industrial planning in the oil patch. He has proposed the Alaska Oil Production Enhancement Act, which has provisions that require the producers to make new investments in the State in return for tax cuts.
proposing legislation that will get the State into the business of industrial planning in the oil patch. He has proposed the Alaska Oil Production Enhancement Act, which has provisions that require the producers to make new investments in the State in return for tax cuts.Industrial planning has never worked. It will not work on the North Slope either.
Fortunately, Representative Gara’s legislation has little chance of making it through the House.
Unfortunately, Senator French’s worldview represents the majority view in the Senate, which does not bode well for any hope this session of rolling back the ACES economic disaster or encouraging a greater degree of investor confidence in our state.
Sen. Cathy Giessel (NGP Photo), R-Anchorage, yesterday addressed the State Senate about the just-released jobs study by Juneau-based McDowell group, which compares
Alaska North Slope job numbers with production.
Alaska North Slope job numbers with production.“The McDowell report confirms that, yes, employment numbers are up on the North Slope, but unlike in past decades, production per worker is way down,” Giessel said. “At peak production of more than 2 million barrels per day in the pipeline, the ratio of what each worker produced was 200,000 barrels per year. Now, the ratio has dropped to 27,000 barrels per worker per year. In other words, it takes nearly eight times as many workers to produce that 200,000 barrels of oil.
“The argument that all is well on the North Slope, based on employment numbers, is specious,” Giessel said. “Production is what brings wealth to state government. Production is declining by 7-8 percent per year. Our focus must be on increasing production. Increased production brings with it more job opportunities for Alaskans, in good-paying jobs.”
Senator Giessel also noted that, even though North Slope job numbers are up a modest number, other oil producing areas have added tens of thousands of jobs. She cited Alberta, where tar sands production is fueling a huge boom, has 60,000 openings.
“This is oil that would have filled the Keystone pipeline, if the Obama administration had not rejected that project,” Giessel said. “The pipeline itself would have generated tens of thousands of construction and operating jobs.”
The study, requested by the Senate Labor and Commerce committee, was paid for by the Senate Finance committee, at a cost of $175,000. Find the McDowell report here:
Listen to Sen. Giessel’s comments under Special Orders here:
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Yesterday, at the Annual Anchorage Economic Development Corporation economic forecast luncheon, Forbes Magazine publisher, Steve Forbes (NGP Photo), said, "The Alaska energy tax structure is (among) the worst in the world; I could only find one worse, North Korea." We will provide a more detailed report of that meeting tomorrow. -dh
Calgary Herald by Rebecca Penty. Ottawa is moving quickly to mandate expedited reviews of new industrial projects in Canada. Legislative and regulatory changes, including strict timelines for assessment, will be introduced this year, Natural Resources Minister Joe Oliver said Wednesday, a commitment that drew support from industry and the Alberta government but criticism from environmental groups. Warning that lengthy reviews cause investment dollars to leave Canada, Oliver told a Calgary business audience he wants "expeditious" assessments of economy-boosting mining and energy projects, and is working to eliminate overlap of environmental reviews.
Oil & Gas Journal: SOTU: Obama pledges to open more offshore acreage, promote gas **David Holt & CEA mentioned in article**
US President Barack Obama will direct his administration to open more than 75% of the nation’s potential offshore oil and gas resources for development, he said in his 2012 State of the Union address. “We have a supply of natural gas that can last America nearly 100 years, and my administration will do everything it can to safely develop this energy,” he added.
Big Government: Obama’s State of the Union Energy Claims Undercut by Record **Op-ed by David Holt**
Tuesday’s State of the Union address is noteworthy because it appears to signal a change in the Administration’s approach to US energy development. If so, this is welcome news. Truly embracing an “all of the above” energy strategy that allows for the robust development of our oil and natural gas resources in the immediate term would boost economic development, lessen our dependence on hostile oil regimes, and save American consumers from record-high fuel costs.
Observer-Reporter: Shale group encouraged by Obama mention **CEA mentioned in article**
The region’s largest natural gas trade group has expressed optimism about President 
Obama’s support of shale gas production he mentioned Tuesday night in his State of the Union Address. Prior to the president’s address, Kathryn Klaber, president of the Southpointe-based Marcellus Shale Coalition, which has nearly 300 members from the natural gas drilling, production and supply chain, told reporters from the news and trade media she was pleased Obama was including natural gas as part of a strategy to make America energy independent.
Obama’s support of shale gas production he mentioned Tuesday night in his State of the Union Address. Prior to the president’s address, Kathryn Klaber, president of the Southpointe-based Marcellus Shale Coalition, which has nearly 300 members from the natural gas drilling, production and supply chain, told reporters from the news and trade media she was pleased Obama was including natural gas as part of a strategy to make America energy independent.Meanwhile, Congressman Doc Hastings (NGP Photo-r-above) says Obama’s Rhetoric is not matched by action.
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