Did you think it was a government giveaway when Reagan decreased the federal Income Tax rates in the ’80s? Hmm, thought not. So why is it a government giveaway to reduce oil taxes?
Assume you have $5 billion to invest for a return in 10 years. Would you pick Alaska where you can get $10 billion back or, say, Indonesia where you can get $20 billion back? Hmm. It might be Alaska’s oil but Big Oil isn’t obligated to produce it and Big Oil will go where it makes good business sense. Alaska’s competition isn’t Big Oil — it’s the rest of the world. Wouldn’t surprise me at all that the state of Alaska will be stupid enough to drive Big Oil out of the state even if there are billions of recoverable barrels of oil on the North Slope.
By the way, you won’t like the value of your house if TAPS shuts down. Think about it.
— Mark Desinger