[thackney]

But the latest explosion in production has been driven by the smaller companies, not the big boys. They sat on their leases and let others get the jump. Now they are playing catch-up and they don’t like that one bit.

There is plenty of drilling and expansion in this increase. ConocoPhillips is one I am dealing with.

As for not drilling in Alaska: these companies KNEW the RULES and the tax rates when they bought the leases.

Now maybe I can get you to understand. After they bought the lease, spent the money on drilling and building infrastructure, then Alaska raised the tax rates.

[LRoggy]

“Now maybe I can get you to understand. After they bought the lease, spent the money on drilling and building infrastructure, then Alaska raised the tax rates.”

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Welcome to the world the rest of us deal with every day in business!!

As a financial advisor I deal with CHANGING tax rates, rules and compliance issues all the time. My underlying point is still valid:

If the rising world price of oil is not enough to offset these higher rates, look elsewhere. Like no other industry has had to write off sunken costs of an investment that has gone wrong because the rules changed . . .