Posted on 04/13/2012 5:42:56 AM PDT by Timber Rattler
In an exclusive interview to Breitbart News, Sarah Palin discussed energy policy and her Fox News Special (with Eric Bolling) "Paying at the Pump," which airs tonight on FNC at 10pm ET. The program will re-air on Saturday and Sunday. She also touched on some other topics of the day...
(Excerpt) Read more at breitbart.com ...
Capital spending under ACES is UP, although not enough. Even you finally admitted that. Ask the oil companies why they're spending it outside the state and not with Alaska firms. I don't know.
Your link says ND royalties are 18.75%. Ms. Coyne's numbers (20%) don't seem far off. She got them from the ND Tax Dept. and said they were the average for the state.
You can confuse maintenance projects with investment for future production if you want. I'm actually doing work for them and I know better. The first two years were mostly spending for projects underway, it fell significantly after that.
Now ConocoPhillips is spending money to update pigging of the gathering lines before the get into the leaky pipe scenario that BP fell into. They are spending money to bring Fuel Gas from Prudhoe as Kuparuk supply dwindles. And the only new drill site that is planed at this time is CD-5 in NPRA on Federal Land.
Keep watching their production rate fall. Alaska will have plenty of folks watching and still not understand why they don't compete with Texas and others lower production tax.
Look at Alaska’s numbers from the department of Revenue.
http://www.tax.alaska.gov//programs/documentviewer/viewer.aspx?2524f
2011 data
$8,090,100,000 revenue from oil
191,260,000 barrels of oil
Alaska North Slope Average Price $87.32
Dollar Value in Alaska of all oil produced = $16,700,823,200
Percentage paid to the State = 48.4%
CP's numbers as stated to the SEC clearly show that they sold Alaskan oil at over $100/barrel. Are they that much better than BP and Exxon? LOLOL. Are they telling the SEC and the State of Alaska different stories? That would certainly be major news.
Yes they did. You may also want to consider the Alaskan fiscal calendar is not the same as the SEC.
..the State of Alaska's fiscal year, which is July 1 through June 30
http://www.commerce.state.ak.us/dca/logon/finmgt/finmgt-budget.htm
A six month slide from Jan 2011 to July 2010 makes quite a dollar difference in oil.
Jan 2011 = $83.68
July 2010 = $68.51
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=F005071__3&f=M
In calendar year 2010, CP reported their AK sales price at $78.61/barrel and their taxes paid at $17.65 barrel. That's 22.5% for AK's take of CP's oil.
CP is spending more money to produce a barrel of oil in AK than ever before. You mean they're not spending any of that in Alaska either?
And how much was the royalties?
Yep, it is mostly old fields and the cost of producing each continues to rise. As the original design life approaches, or gets exceeded, they spend more and more money just to keep the existing operating. No different than anyplace else. Without new production investment, the flow rate will continue to decline.
You mean they're not spending any of that in Alaska either?
I'm not claiming nothing is spent for new barrels. COP is adding water injection at Kuparuk to squeeze at bit more from the old field as well as handle the increasing amounts of produced water. The later requires the added injection, the former a benefit.
But as you can see from their capital investment dollars, they are sending more to places that produce less today. That is where their future is while the current choke-hold remains in Alaska.
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