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Home » Press » Senator Wielechowski offers 1st of 52 reasons to repeal the Oil Wealth Giveaway

Senator Wielechowski offers 1st of 52 reasons to repeal the Oil Wealth Giveaway

Senator Wielechowski offers 1st of 52 reasons to repeal the Oil Wealth Giveaway

         Governor Parnell claims this massive giveaway will spur increased oil production.  This is his primary rationale for funneling a billion dollars Alaskans would have received each year to Exxon, BP and other multinational oil companies. 

         However, this strategy has been shown to be ineffective in Alaska and elsewhere.  For 30 years, production taxes in Alaska were minimal.  As recently as 2006, 15 of 19 North Slope oil fields paid zero production taxes. Yet, production dropped 55% from 1988 to 2005 under extremely low tax rates.  (See http://dog.dnr.alaska.gov/Royalty/Production.htmLower taxes did NOT lead to more production.  In fact, low taxes led to 1.15 million fewer barrels per day in oil production, roughly twice today’s production level.  SB 21 takes us back to a failed philosophy that has already cost Alaskans billions upon billions.

YearAK oil production in millions of barrels% decline by year
19887590
1989704-7
1990666-5
19916802
1992654-4
1993605-8
1994595-2
1995571-4
1996544-5
1997508-7
1998463-9
1999416-10
2000388-7
2001382-2
20023882
2003383-1
2004360-6
2005342-5

historical volumes by year and field 1977-2012

SB 21 will not lead to increased production and will cost Alaskans billions.

 

            Visit itsouroil.blogspot.com to follow the 52 reasons to repeal and engage fellow Alaskan’s in discussing the future of our oil

            For more information, please call Senator Bill Wielechowski at (907) 242-1558.

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