CBC News. China’s largest bank will be helping to finance the proposed Kitimat refinery, which would process oil from the Alberta oilsands in B.C., instead of the raw bitumen being shipped overseas. B.C. media mogul David Black said he has signed a memorandum of understanding with the Industrial and Commercial Bank of China (ICBC) for the proposed refinery that is estimated to cost $25 billion.
Shooting Oneself In the Foot
Commentary by Dave Harbour
Certain left leaning Alaskans are intent on shooting Alaska’s economy in the foot.
They are promoting a voters’ referendum that would repeal the oil tax reform recently enacted. Just as the Legislature and Governor acted to improve the investment climate through oil tax reform, these people are acting to maintain the uncertainty of the investment climate–adversly affecting all Alaskans, particularly the future of the coming generations.
Readers can bet that this group will be composed of an odd assembly of socialists, environmental extremists, publicity seekers and ex-public officials who see the oil industry as enemies and not the strong supporters of Alaska’s way of life.
One can envision investors gathered around a breakfast or boardroom table in coming days, concluding that Alaska is still too uncertain and risky to merit a major new financial commitment.
So, what should Alaskans do now? Do not sign the anti oil petition. Those who do sign it will be telling investors: "Stay out; we can do just fine without your money and commitment!"
Meanwhile, Alaska’s economic lifeline, the Trans Alaska Pipeline, continues its steady throughput decline from 1/4 capacity toward zero. Only a change in Alaska’s investment climate can produce a greater flow of investment. Repealing tax reform will drive a stake through the heart of investor confidence, perhaps for a very long time. (References: Fairbanks News Miner, SB 21 and the Petition to repeal it.) -dh