What Palin Really Did To the Oil Industry

The Wall Street Journal ^ | SEPTEMBER 5, 2008 | JAMES P. LUCIER JR.

[The Bronze Titan]

Oil companies in Alaska are paying more money in taxes than ever before. The state's oil and gas tax revenues for its just-ended fiscal 2007 topped $10 billion. That's twice as much as fiscal 2006 and four times more than 2004. Some supporters of Barack Obama see that money coming in and say that John McCain's running mate, Alaska Gov. Sarah Palin, must have done what Sen. Obama wants to do -- sock those companies with a big fat windfall profit tax. This is a deeply misleading reading of her 2007 tax reform.

...continued HERE.

[thackney]

ACES is not royalty payments. It is a tax imposed on the profits and other approved expenses. Governor Pain did not change the royalties and ACES specifically excludes royalties.

[Smokin' Joe]

-"A direct share in oil profits for every citizen is the ultimate incentive for more drilling. That's why in Alaska drilling for oil seems almost universally popular, while other states are drill-phobic."

Nope. Not North Dakota. We know the source of much of our current prosperity--and a budget in the black.

[Smokin' Joe]

But this doesn’t make sense to me, because when the resources are gone, what do future Alaskans own?

While I agree with your premise that some should be set aside, keep in mind that if Alaska was split down the middle, Texas would be the third largest state. There are tremendous resources there yet to be discovered.

[editor-surveyor]

>> “If anything, the taxes collected should be put in a ‘lockbox’ for future generations” <<

.
Lockbox? - Isn’t that one of Algore’s campaign words?

How much is in his Social Security ‘lockbox’ now?

Yep, and the same amount would be in Alaska’s lockbox too.

[ak267]

Okay, I’ll change the statement.

Taxes are fluid and change over time. The state government has a right to enact taxes under its state constitution. The people can petition to have them changed or elect leaders to change it. If you have a problem with it, then change it.

All state governments have some hand in it’s rources, products and services. How much is up to multiple factors.

It’s political season which explains certain negative postings to begin with. Hey folks, the anti-Palins are trying to besmirch her record and call her a non-expert. HELLOOOOO....POLITICS!!!! POLLY WANTS A CRACKER and the PDS group likes saltines!!!

For someone who has been vetted 7 ways to Sunday, this is all they’ve got left.

So the critics (who didn’t seem to mind before Palin entered the scene) can snipe and gripe all they want....but ACES, in some form, is here to stay.

[ak267]

ahhhhhh....he’s from Texas....that explains it.

[editor-surveyor]

>> “It’s pure socialist redistribution at its finest.” <<

.
How can it be when it goes to everyone, not just to the “poor.”

Go troll somewhere else.

[editor-surveyor]

>> “The federal government should OWN only what the States ALLOW THEM TO OWN” <<

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That’s what the constitution says too.

The constitution forbids the fed gov from owning anything but DC. They are also allowed to use but not own the military reservations, and must return them to the states when they stop using them.

[editor-surveyor]

>> “Doesn’t sound conservative...” <<

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Are you of the opinion that ‘conservative’ means “screw the people?”

[editor-surveyor]

>> “Just to make clear, Alaska is the only state where this is the case” <<

.
Wrong!

Our federal constitution says that it is true in all the states, but the feds disobey that useless document.

[thackney]

Your crybaby BS would only make sense if the American economy was doing great or at least average and yet things were still bad for the Alaskan oil workers.

And you can't understand that the same industry, working for the same clients, was booming in other US locations.

You don't address any of the topics, just make excuses and criticize the sources.

You complained about the AP sources, so I provide other sources. You complained about the left leaning media, so I provided other specific Alaskan Industry and Alaskan Petroleum sources.

You won't address the actual issue. You make false claims about the other source. Have fun with your delusions while the industry, Alaskan legislature, Alaskan governor and the Alaskan voters continue to see the growing problem with ACES.

[thackney]

I was working in Alaska; I went to Texas because that is where more of the jobs are.

And have the decent courtesy that if you want to talk about me in a public post, to ping me.

[ChildOfThe60s]

Obviously I need to study the details of this. I’m taking something of a hit for my comments.

I’ll read up on it. If my perception is incorrect, I have no problem admitting it.

[editor-surveyor]

>> “IS PALIN AN EXPERT ON ENERGY?” <<

.
Did you mean energy, per se, or energy policy?

I think that it is fair to say that her experience on the AK Oil and Gas commission qualifies her as an expert on policy.

[editor-surveyor]

>> “Do you understand that many in Alaska have figured out that this tax is too high and is preventing further investment in the state?” <<

Hey, you’re pulling one here. Federal policy is what is preventing resource development in most of the state, not the tax.

Otherwise, you’re right on.

[CynicalBear]

LOL I noticed that. I don’t think anyone was getting personal about it but just trying to explain it in a way that relates. One thing you need to remember is that there are those who lurk and read but never post. They get their information here. I love FR for the very reason we are talking about now. It’s good to get comments like you made because it allow others to clarify any misconceptions people have. Most everything gets vetted here and I’m always amazed at the extent of research people here do and share with us.

I would say don’t hesitate to state views but be ready for rebuttal. It’s a good way to get information to formulate our own view. Your attitude about taking another look is a healthy one.

[okie01]

The rationale (as I understand it) is that the people of Alaska own the resources and therefore the extraction companies owe them a royalty on those resources upon extraction.

Which is precisely the proposition on which all extraction industries operate.

The owners of the land own the resource. The oil (or mining) company pays to obtain a lease to develop the property. And the lease specifies a royalty rate that the extractor will pay to the owner if it is brought into production.

Most of Alaska is public land. Therefore, the owners of the land are the Alaskan people. In this case, the state government is serving as agent for the Alaskan people.

Strictly standard operating procedure.

And, like all extraction industries, when the oil is gone, the owners still own the land.

[Smokin' Joe]

If you want to take individual owned mineral rights from the individual owners, Texas or elsewhere, you better come prepared for a fight.

True, that. Unfortunately, those without will all envy those with, and nowadays, try to use the Government to 'get their fair share'--even though they'd fight against that just as hard if the roles were reversed. I think envy feeds liberalism...

[Berlin_Freeper]

...the same industry, working for the same clients, was booming in other US locations.

With the same corruption that was notorious in Alaska?

"Was booming" is supposed to make your point?

Not really.

You responded to me first, immediately talking down to me about how I should "pay attention":

Read the replies, and pay attention to links to more current articles discussing the proposed changes.

You are so childish and insecure that you think posting 20+ links from the Democrat PDS Media and Alaskan Republican PDS Media (who especially hate Palin because with ACES she was against their party's corruption), that makes you the winner.

Have fun with your delusions while the industry, Alaskan legislature, Alaskan governor and the Alaskan voters continue to see the growing problem with ACES.

As for ACES... after 20+ links "the growing problem" is the best you can do? LMAO! How about a real problem - problem?

Since you are so mad about links here is one I am sure you will add (NOT) to your 20+ PDS list:

Jobs, oil revenue increased under ACES
January 29th, 2011

[Eska]

thackney, What I want to know is when you're going to get back up here and shoot some caribou, more importantly.

Also with all due respect as I know you are an honorable person, and yet I always disagree with ya on this, ha ha. Bottomline, all our politicals from governors on down have been bought and paid for by the oil industry; dem & repub alike. Palin is the only one that bucked the time honored tradition of once elected you do everything the oil industry asked of you. Always been that way up here too with the exception of Palin.