Oil Production Topic Du Jour as Legislature Gavels in Yesterday
As the 28th Alaska State Legislature began yesterday, Governor Sean Parnell submitted legislation designed to increase oil production and attract new investment.
Senator Peter Micciche, commented on the issue of increasing production as the Senate Majority announced their committee assignments, and some new committees like the Senate Special Committee on Trans-Alaska Pipeline System (TAPS) Throughput, of which Micciche will serve as co-chair…
Sen. Micciche(R-Soldotna): “We’re going to be looking at a lot of the obstacles to increasing production. Production that we count on for critical services to our state, which are services we all support, we support seniors, and kids and veterans, who are very active groups in our communities, we’re going to continue to support those groups. So we’re going to be looking at obstacles as water and gas handling limits, access issues, efficient permitting, the lease program, tariff issues, leveling an Arctic environment and challenges that go along with it. We’ll be obviously looking the severance in production tax structure, evaluating changes proposed by the [Parnell] administration.
The Governor’s proposal takes a four pronged approach focusing on, tax reform that Parnell says must be fair to Alaskans, encouraging new production, oil taxes that must be simple so that they restore balance to the system, and a tax structure must be competitive for the long term
Micciche, however, said that everyone is united on the end goal…
Sen. Micciche(R-Soldotna): “Ultimately, the goal is a long term plan for production in Alaska, so we’ll be looking at decoupling viscous oil and gas from traditional North Slope oil production, and incentivizing new oil, if you will.”