Alaska oil tax debate reflects global changesback at home
JUNEAU, Alaska — If oil companies want to continue taking Alaska’s oil, state officials say they need to up the ante.
In fact, Gov. Sarah Palin wants 25 percent off the top of all profits the companies make in Alaska, up from 22.5 percent and the second hike in as many years. In a special legislative session, oil giants are warning lawmakers that another increase will make the business climate look unstable.
But after Western oil companies have been effectively kicked out of Venezuela and Russia, these could just be hollow arguments.
“The financial impact pales in comparison to what’s going on overseas,” said Greg Priddy, analyst with New York based Eurasia Group. “In the end, with these oil prices, it will be something the industry is willing to absorb.”
Bad news for oil companies is that more and more governments want a cut of the action.
High oil prices will make it worthwhile for the oil prices.
Not a lot of good news for citizens or consumers.
