SitNews - Stories in the News - Ketchikan, Alaska

Viewpoints: Letters / Opinions

Giving Alaska's oil away

By Ray Metcalfe


July 11, 2017
Tuesday PM

Alaska doesn't have a budget problem; Alaska has bribery problems, and gullible legislator problems. Alaska allows oil companies to extract fair payment for their services from net oil production revenues. Additionally, they keep 90% of our ownership equity; equity other owner states keep. At today's prices, the big three are making over $17 per barrel plus cost of production and delivery from our oil. (See ConocoPhillips' quarterly reports) That's about $9 Million per day, or $3.2 billion per year.

BP and Exxon have agreements, with less friendly governments, to produce their oil for cost of production and delivery, plus $1 per barrel. $3.76 per barrel would exceed their international average net profits. If that was what the Legislature was to allow them, Alaska would receive an additional $2.5 billion this year.

Ten years ago I helped the FBI bust six legislators for taking bribes to give Alaska's oil away. For six years the oil companies lost control and Alaska saved up $16 Billion; that's the savings this Legislature is once again reaching into to cover the deficit; savings now depleted because Alaska's legislators are once again giving our oil away. Why would Alaska's legislators agree to pay four and one half times more than a fair market payment for production services? There is only one logical answer and its bribery.

Ray Metcalfe
Anchorage, Alaska


About: Ray Metcalfe was twice elected and served in the Alaska House of Representatives as a Republican. In 2008, he switched to the Democratic party. In the August 16, 2016 primary, Metcalfe won the Democratic nomination and ran unsuccessfully for the United States Senate as a Democrat opposing Republican U.S. Senator Lisa Murkowski. 


Received July 09, 2017 - Published July 11, 2017




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