Willow oil production would lead to lower state revenues for years because of state oil tax law

You would never guess it from reading the resolutions and declarations of support about the Willow project from Alaska politicians and businesses, but development of the oil field would cost the state hundreds of millions a year during the early years of construction and production.

That’s because it is on federal land and the state would collect no oil royalties from the field, only production taxes. Equally important, the state oil tax law allows ConocoPhillips to write off the expense of developing Willow against its other operations in Alaska immediately, reducing how much it pays in taxes for up to eight years.

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Dermot Cole Comments
Sen. Dan Sullivan won't say whether he would support Trump if the former president is indicted

In the infamous Pebble tapes from 2020, the chief executive of the proposed mine portrayed Sen. Dan Sullivan as someone who is “gonna try to ride out the election and remain quiet.”

Tom Collier lost his job over his impolitic remarks about Sullivan and Sen. Lisa Murkowski, but truer words have never been spoken about Sullivan.

The junior senator is always trying to ride out the election and duck contentious issues, clearly communicating a position only if he can pose it as an attack on Democrats or if it an issue on which he can’t possibly lose.

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Dermot Cole Comments
Tetlin mine processing plant would be profitable, economical, 2018 study found

Kinross is telling Alaskans that it is not economical to build an ore processing facility at the high-grade gold deposit near Tetlin, so it has no choice but to use the highway system to truck ore to the Fort Knox mine for processing.

But there is good reason to dispute the claim.

Why?

Because a 2018 study of the proposed Tetlin project—before Kinross got involved—found that a mine project built at Tetlin would be an economical and profitable venture for all concerned, even with a gold price of $1,250 per ounce. Gold is now about $1,830 an ounce.

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Dermot Cole Comments