Governor Sean Parnell’s State of the State Speech (Text)

Our Comment:  If the Legislature doesn’t improve Alaska’s tax structure this year they will threaten an early end to operation of the Trans Alaska oil pipeline and delay gas pipeline progress for at least another year.   (See Patti Eppler’s Alaska Dispatch story: Senate Finance Committee co-chairman Bert Stedman said the final report isn’t expected until June, two months after the session is over.  Senate President Gary Stevens hedged on the notion of a special session to deal with oil taxes, saying that was the governor’s call. But he suggested it’s an issue that could be left until next year because lawmakers want to get it right.)    -dh

ADN by Sean Cockerham.  Gov. Sean Parnell (NGP Photo) told legislators in his State of the State speech Wednesday night that he wants lower taxes on the oil companies and hopes to impose a state spending limit to avoid a "spending frenzy" by lawmakers before they leave town. … Parnell also expressed confidence in the state’s progress toward a natural gas pipeline to the Lower 48.  "Because of the work we’ve done together, our natural gas industry had an historic year. For the first time, companies bid gas toward a gas pipeline project, bringing us closer to a pipeline," Parnell said.  Parnell renewed his call to lower taxes on the oil companies, although he didn’t spend much time on the subject. Parnell is asking the Legislature to agree to cut taxes on the companies by an estimated $5 billion between 2013 and 2017.  "Let’s pass legislation to make our oil tax regime more globally competitive. Lower taxes lead to more resource development, and that leads to more resource development, and that leads to more jobs for Alaskans," the governor said.

Alex GimarcThe Alaska Standard by Alex Gimarc (NGP Photo).  For the last several years, Shell Oil has tried to start a series of exploratory wells off the North Slope in the Chukchi Sea.  They have been fought every inch of the way by the Obama administration, well-paid environmental groups, and local native groups angling for free money.  To date, this has cost them over a billion dollars.   Eventually Shell and their shareholders will get tired of throwing money away in Alaska and take their business elsewhere.  This is the death by a thousand cuts to an industry that has provided employment for Alaskans…. (Our Opinion On Death By A Thousand Cuts)

The Alaska Dispatch by Patti Eppler.  For the last few months, Parnell has touted the need to push back against the federal government when necessary to assure development of Alaska resources, particularly North Slope and offshore oil and gas prospects. He has filed numerous lawsuits and joined other legal actions against the federal government, mainly relating to oil exploration but also to stop President Obama’s health care program and other initiatives he believes are not in Alaska’s best interests.