Politics

In speech to industry group, Parnell highlights his years in office

Amid a batch of positive news linked to his major energy initiatives, outgoing Gov. Sean Parnell gave what may be a swan-song speech before a supportive crowd on Wednesday, saying he has worked aggressively with Alaskans to create economic opportunity across the state.

The speech at the Resource Development Council's annual meeting came just after the state held a huge lease sale of North Slope oil field tracts that was one of the largest in history, bringing in about $60 million in high bids and prompting observers to credit the oil-production tax rewrite Parnell pushed through the Legislature in 2013.

Parnell highlighted that new tax regime in his speech and listed other accomplishments before hundreds of business and industry leaders who gave him two standing ovations and sang "Happy Birthday" (the governor turned 52 on Wednesday).

A former oil industry lobbyist and self-described "recovering attorney," Parnell said after the speech he planned to focus on working in the private sector or in the nonprofit world in areas where state laws allow, focused on such things as "advancing economic opportunity (for Alaska) and safety for domestic violence survivors."

Parnell, who became governor after Sarah Palin left office in 2009, didn't provide specifics on what he'd do next. "I'm not going to be lobbying the state or be part of the state effort," he said.

He said he's looking forward to being a private citizen again when Gov.-elect Bill Walker is sworn in on Dec. 1. He'll also focus on being a grandpa, referring to the birth on Tuesday of his first grandchild, a boy named Rowan.

Seeming relaxed in his speech, but with a voice that cracked at times, Parnell said when the world seems like it's been turned upside down, holding a newborn immediately puts the important things in life back into perspective.

ADVERTISEMENT

As governor, he said, he kept a map in his head of economic opportunities across the state that included his efforts to boost tourism by increasing cruise ship traffic, have marine highway ferries built in Alaska for the first time, truck natural gas to Fairbanks starting in 2016, and change production tax laws and incentives to spark oil and gas development across the North Slope and in Cook Inlet.

Executives with oil giants BP and ConocoPhillips gave presentations at the meeting before Parnell's speech that underscored his policies to boost oil field activity. The companies said they are moving forward with projects worth billions of dollars as a result of the new tax law known as Senate Bill 21, despite a drop in oil prices that has led to fears of a major contraction in the oil industry globally.

ConocoPhillips, for example, said it signed a contract this week with Nabors Industries to build a specialized coiled-tube drilling rig that can act as a giant and flexible fishing line, wiggling and twisting through reservoirs in the search for oil, said Trond-Erik Johansen, president of ConocoPhillips Alaska.

It will be the second new rig and the fourth overall that the company will add to its North Slope operations because of the tax rewrite, he said. The new law cuts producer taxes at higher oil prices and is considered more stable than the previous tax that increased as oil prices rose.

In another shot of good news that came before Parnell's speech, Department of Labor economist Neal Fried said jobs statewide continue to grow, though at a slower pace than in recent years. But he called the oil and gas industry an employment "rock star" that is growing rapidly on the North Slope.

Oil patch jobs on the Slope, from rig workers to kitchen help, increased by 1,200 to put total employment there at about 12,200, said Fried. The Slope's fields in recent years have posted annual records, but the jump in jobs is one of the highest in the last decade.

Kara Moriarty, president of the Alaska Oil and Gas Association, said the increase in jobs is tied to various oil field activities, including at the Point Thomson field, where the Parnell administration inked a settlement agreement with Exxon Mobil Corp. in 2012. First production is expected there in 2016.

"The policies and work we've done together have knit together new opportunities for Alaskans," Parnell said in his speech, telling the business leaders in the crowd that they and other Alaskans played key roles in shaping his administration's priorities.

Parnell also said that while he was chided for setting a goal in 2011 of boosting North Slope crude-oil production to 1 million barrels per day -- an amount that would be roughly double today's production levels -- he said he believes that goal is still possible.

"If you shoot for 1 million, you'll more likely get there than if you'd done nothing and not set a goal," he said. "I think we're on our way there."

He said more than 3,000 young Alaskans took advantage of his performance scholarship. He referred to his efforts to fight the state's sexual assault epidemic, saying "thousands of Alaskans are safer today, having escaped the fear and shame of domestic violence and assault."

The future is uncertain, he said. "But you know what, we have huge potential in our resource base. That hasn't changed, (and) we have a huge group of Alaskans here and across the state who want to grasp that potential together and who want us to live for that potential," he said.

He said he's committed to working with Walker to ensure a smooth transition, including to offer recommendations on making sure trust and confidence is restored in the Alaska National Guard.

Asked if he had any advice for Walker, he said: "I would just recommend that he continue this path of economic opportunity."

Alex DeMarban

Alex DeMarban is a longtime Alaska journalist who covers business, the oil and gas industries and general assignments. Reach him at 907-257-4317 or alex@adn.com.

ADVERTISEMENT