Letter to the editor
Oct. 21, 2012
To the editor:
We know that Alaska oil production is declining, we rely on Big Oil for our well-being and we value them as business partners. The major oil producers in Alaska are asking for a $2 billion annual kickback from the state coffers as an incentive to maintain their presence in Alaska in case they can’t keep future profits up.
Even though production is declining, profits are not. ConocoPhillips, just one of the big three in Alaska, made an average of almost $2 billion net profit in each of the past five years. Alaska provides a reliable revenue base for these oil companies, unlike other places around the world where they’ve experienced huge losses in the past few years. They are still making heady profits on Alaska oil and have no reason to back out of the North Slope. They are only leveraging their formidable power in the state and their influence over Gov. Parnell, who came from a position at ConocoPhillips, to attempt to make even more from an already profitable venture.
Six years ago, former Gov. Sarah Palin and the state Legislature did a good turn for all Alaskans when they leveled the playing field by putting a cap on the oil companies’ vast profits when oil prices are skyrocketing. Gov. Parnell’s proposed $2 billion per year giveaway is unnecessary and is irresponsible when those funds are desperately needed to help reduce our cost of energy.
Just say no when asked to donate to Big Oil profits on Nov. 6. Vote for the legislators who have shown the strength to stand up for us: Sens. Joe Thomas and Joe Paskvan and Reps. David Guttenberg, Bob Miller and Scott Kawasaki.