As every Alaskan knows, we need more oil in the pipeline to fund the critical services needed around our state. I have written and talked to a few senators and representatives regarding a simple idea to increase production on the North Slope and start filling our pipeline once again.
The state needs to leave ACES in place, and pass a bill that allows the oil companies to pay no taxes on oil production above the production level average of the last 5-10 years.
I know this sounds simple, but it would be a strong incentive for the oil companies to produce. Pay for performance, and we don’t give away what we currently have in taxes. If the oil companies don’t increase production, we still get our cut.
It is like my first job as a kid, I got paid by the hour and I set my own hours, so I worked as much as I could, because the more I worked, the more I got paid. Oil companies are the same; just give them a solid incentive to fill the pipeline.
— Joe Bailor