The governor's oil tax bill, SB21, should be tabled for the time being. It should be tabled for two primary reasons.
First, BP, Exxon, and ConocoPhillips need to give a guarantee to the state that they will use some if not all of the proposed public tax rebates to increase the flow of oil through TAPS. Lacking this guarantee, the bill should not be passed. It makes no sense to hand billions of dollars of Alaska's public monies to these companies without receiving anything concrete in return. As it currently stands, SB21 would hand a huge tax break to these corporate giants in hope that they will decide to explore or develop more oil on the Slope. Until or unless these companies assure the state -- in writing -- that they will use most if not all of these public funds to take concrete steps towards developing additional oil, Alaska's elected officials will simply be giving taxpayers' money without any guarantee that they will act in the public interest. That is bad politics.
Second, we are setting ourselves once again to giving the rest of the country reason to believe that Alaska's political system has been corrupted. SB21 was introduced by a governor who is a former oil company lobbyist, and the two deciding votes in Alaska's state Senate in favor of the bill came from two senators who are oil company employees. In a move that is sure to inspire a field day for the national media, those winning votes to give billions of dollars to their employer will be placed right alongside the Bill Allen-VECO political disaster of the recent past.
If the bill passes in its current state, I'll be profoundly and personally offended. I've actively participated in Alaska's politics for some sixty years, and still think the system is fundamentally sound. And I've known every governor since statehood, and believe none of them would make this significant change in Alaska's oil tax without requiring a guarantee. This would be worse than bad politics. It would be selling the public down the river.
As I said at recent hearings on this bill, the oil companies employ some of the smartest people in the world. They have staggering resources at their disposal. They do not need the Alaska Legislature or governor to do their work for them or represent their interests. They are extremely good at representing their own interests. And their interests and those of the Alaska citizenry are not identical, as many of our current legislators seem to forget. Alaskans need leaders who will represent our interests. That is good politics. I hope we see a return to good politics soon with the tabling of SB21.
Jack Roderick has been involved in Alaska's oil industry in different capacities since the 1950's and has had a long career in public service through various government and civic positions. He chronicled his experiences in the book, "Crude Dreams: A Personal History of Oil and Politics in Alaska." He lives in Anchorage.
The views expressed here are the writer's own and are not necessarily endorsed by Alaska Dispatch, which welcomes a broad range of viewpoints. To submit a piece for consideration, e-mail commentary(at)alaskadispatch.com.