Big difference: Exxon, Conoco Phillips, BP etcetera DO NOT OWN A DROP OF OIL in Alaska.
It is all owned by the people of Alaska,and they can drive whatever bargain they want when they sell it to the oil companies. It’s called free trade.
In the lower 48, the great majority of mineral rights were sold long ago, not so in Alaska, where mineral rights, with few exceptions, were never sold, and are retained (according to the Alaska Constitution) by the citizens of Alaska.
Several points to consider when interjecting "Alaska Oil" and "Sarah Palin"...
- Sarah Palin single-handedly took a confirmed "corrupt" state industry (comprised of capitalist and government forces), and turned it on it's head by reforming it's revenue structure and providing public transparency to be benefit of it's citizens. That cannot be disputed.
- Sarah Palin took this effort in the right direction. The legislation as "ACES". Was it "PERFECT"? No, because nothing in this world is (except the exceptional "Diamond"). But, she she did REVERSE THINGS in the right direction as far as it was politically possible.
- The "ALASKA CONSTITUTION" (unlike those of other states) proclaims the "oil" (i.e. "minerals") to be the property of the State/Citizens. This makes the STATE/CITIZENS the "OWNER" of the oil (Mineral), and so they become the "SELLER" of this oil. As the "Seller" they (STATE) get to decide "WHO" they sell to (Leases) and "HOW MUCH" to charge (call them "Fees", "Taxes", "Charges" less "Credits", "Tax Breaks", etc...), and to what "END" they apply these "REVENUES" (Dividend Checks / Savings applied to future obligations "DEBT", etc...).
- As the "OWNER" of this Oil, the STATE needs to make sure that they get the best return on their ASSET, but at the same time being mindful that you need to have competitive incentives for private industry to INVEST and DEVELOP this resource for the longterm. This is what the current debate is about. See the Report just commissioned this year issued by 'Commonwealth North'.
Exactly. In Alaska, they pay the oil companies 75% of the value of the oil for the rudimentary task of getting it out of the ground.
I think the rate ought to be 25% with the rest going directly to Alaska citizens.