In response to Conoco’s VP Scott Jepsen’s Compass editorial in the Oct. 28 ADN:
Concerning what Mr. Jepsen calls “a skewed risk-reward balance of investments at high prices”:
Call it what he will, but it’s our oil. We own it. The world needs it. ConocoPhillips is extracting a raw material that it processes and then sell. They buy it from us.
The value of oil will escalate forever, due to the relentless global increase in demand and the fact that most of the easy oil is gone. The “Slope” is not an easy or forgiving place to develop. However, it is safe. No terrorists, a stable political structure, no mob bosses or Taliban to placate.
Prior to ACES (Alaska’s Clear and Equitable Share), we gave away a lot of oil at little benefit to the state, other than the benefits we derived from huge volumes produced at low tax rates.
The companies can expand exploration and development and benefit from reduced taxes thereby, or sell out and leave the state.
Take it or leave it.
— John Schroeder