"The health of the (oil) industry is critically important to our business success and being able to employ people and specifically shareholders, which is a big corporate goal that we have every year," Schutt said.
In May, Schutt joined five other
Since the passage of SB 21 in
"There is more demand currently for rigs than there are rigs" on the Slope, he said.
Additionally, nearly 400 Doyon Associated employees chipped in to complete the pipeline between
The work available today is a stark contrast from 2008, when two
Schutt detailed the cost to Doyon of having a drilling rig go down. He said each rig employs about 80 field hands that have an average salary of about
"Just our rig is about
Overall, about half of the workers manning
"The financial impact is huge when you have a rig go down. It's a very significant event for us," he said.
Beyond the well-known impact oil production has on the state budget, development activity supports local city and borough governments through property taxes in the millions of dollars, he said. Changing the tax structure again and reverting back to ACES, with the possibility of another tax plan proposed by Democrats to follow, would make the investment climate in
Former state senator and a leader of the "Repeal the Giveaway" campaign
He wrote that the corporations speak only for their corporate interests and that they don't represent the views of the voters of the respective regions, a fact that he wrote will bear itself out
Schutt said the state should be patient and let SB 21's 35 percent base tax play out, as it has been in place for less than a year. ACES had a base tax rate of 25 percent with the sharp escalation in the rate as prices increase.
The "Repeal the Giveaway" campaign simplifies an issue that has vast implications on
"The bumper sticker slogans that we see around town are very inadequate for the very complicated set of economic incentives and penalties we have for oil and gas taxes," Schutt said.
It's no secret there are factors out of anyone's control that make
The tenuous ice road season on the
The tax structure is one piece of the "investment climate" that can be controlled, he said. A stable tax structure encourages investment, Schutt said, a message voiced by other opponents of Ballot Measure 1.
That investment often takes five years or more to come to fruition, and Schutt said he believes SB 21 should remain in place to provide the most inviting oil and gas climate possible while oil prices -- projected to remain at roughly
He noted that ACES and SB 21 pull in roughly the same amount of tax revenue at current oil prices, about
"In the five-year horizon, if you can believe (oil price) projections that are fairly accurate, better than our weather here, we should be fairly indifferent in that tax structure as Alaskans," he said. "It's certainly not the giveaway that SB 21 opponents have portrayed it to be."
According to Fischer, the state shared in profits made by oil producers under ACES, something it could miss out on if prices rise under SB 21.
"SB 21 has essentially a flat tax, giving producers virtually all the benefit from price increases, which are a reflection of market prices, not of any change in cost of production," he wrote.
Schutt said that
Schutt said it isn't wrong to say SB 21 doesn't guarantee investment as its opponents point out, but that ACES was "a very flawed bill and tax structure."
"I agree we need to maximize everyone can say that, maximize the states take," he said. "That doesn't mean you kill the goose that's laying the golden eggs because you want to have a big Christmas dinner with the goose."
As the battle over oil tax policy continues in all corners of
The Native corporation has spent nearly
In all, Doyon is the primary leaseholder of more than 400,000 acres that roughly parallel the
Schutt said "middle earth" exploration credits, as they are known, for Interior as part of the oil tax change were crucial to further work in the area.
Doyon drilled a second well near
"The things are all in place for a highly productive hydrocarbon system including possibly oil. You see a lot of source rocks including coals and shales that will produce oil in the right circumstances," he said.
Additionally, the area to the north at the edge of the
It's new exploration, like Doyon's, that makes keeping SB 21 in place critical, he said.
"If Ballot Measure 1 passes and we find oil in the Interior we'll be taxed just the
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