Thursday, November 29, 2007

Alaska and Alberta Both Dealing With Resource Revenue Issues.

I received an email about the tougher stance Alaska has recently taken with its oil industry. Looks like posturing and game playing in the energy sector is not restricted to Alberta.

The Anchorage Daily News from Alaska has some déjà vu commentary like:

"ConocoPhillips says it's canceling a major North Slope project because the new oil tax denies deductions for the work, but the state revenue commissioner says the company never deserved the tax breaks in the first place.

The project involved upgrading a refinery in the Kuparuk oil field to make ultra low-sulfur diesel, the use of which federal law and a state agreement will require across the oil patch by the end of the decade.

ConocoPhillips, Alaska's top oil producer, and its partners wanted the state to allow tax breaks for the $300 million project under the state tax overhaul lawmakers adopted last year.

In a special session that ended Nov. 16, however, lawmakers passed Gov. Sarah Palin's new tax plan, which hiked oil taxes further and specifically forbade tax breaks for projects such as ConocoPhillips' refinery upgrade."

There is more to the story…there always is…but isn’t this interesting…Alberta is not alone in dealing with a fair share of natural resource revenues.