Replies

It was designed to promote exploration. There was an article in the ADN about new explorers benefitting from the new system.

The tax structure under Palin was changed three times last year, making it very difficult (and expensive) to forecast and operate. Major north slope operators have had to cut back on the number of wells drilled, projects and new employees that were projected as a result.

People are still exploring, but her tax structures do not promote it. Regarding oil/gas industry taxes, AK has some of the highest in the nation. The ADN is a liberal rag.

“RECENT TAX CHANGES HAVE BENEFITED TG WORLD

As the smallest explorers to find oil on the North Slope in recent years, the four companies in the joint venture will be test subjects for some of the recent tax changes enacted by state lawmakers last year.

TG World has benefited greatly from an expansion of the tax credit program designed to promote exploration. Even without oil production to pay taxes on, the company has already earned $3.8 million by reimbursing these credits. The state is processing a second claim for $4.9 million and TG World plans to make a third claim for $8.3 million.

Altogether, James said, these credits helped TG World pay ultimately only 35 cents for every dollar of exploration costs.

“It significantly reduces what we’re paying,” James said of the credits.

TG World and the other companies in the joint venture will see a different side of the tax if they bring a field online in coming years and start paying taxes, but, “Overall, it’s not a bad tax system given the comparison to other jurisdictions,” James said.”
http://www.adn.com/oil/story/449256.html

The 25% number was actually proposed during the Murkowski Admn. until someone was bought off. Alaska is still a decent place for oil companies to do business...ask BP how things are going over in Russia.

The ADN is a liberal rag.

That they are. And they absolutely LOVE Palin. That, if nothing else, should give all the Palin-nut freepers serious second thoughts.

Remember the NYT loved John McCain too. Liberal rags don't love conservatives.