Tag Archives: oil exploration

A Busy Upcoming Oil Exploration Season Proves the Success of ACES

by Whitney Pitcher

The Anchorage Daily News shares some good news for oil and gas development in Alaska, due in large part to Governor Palin’s oil tax legislation, ACES (emphasis added):

As Southcentral Alaska prepares for an increase in oil and gas exploration and development in the Cook Inlet basin, operators on the North Slope and nearshore Beaufort Sea are preparing for what promises to be one of the busiest exploration seasons since 1969, when 33 exploration wells were drilled after the discovery of the Prudhoe Bay oil field.

If all goes as planned, as many as 28 exploration wells could be drilled between October 2011 and mid-2012. It’s a longer-than-normal North Slope exploration season because one company’s wells can be drilled from old gravel sites along the Dalton Highway and therefore are not subject to off-road tundra travel restrictions.

Much of the stepped-up activity appears to be partly due to the exploration incentives offered by the state of Alaska, and partly because Alaska’s governor is committed to fixing provisions in the state’s production tax that could make development of any oil discoveries noncompetitive for investment capital with projects in other oil provinces.

The exploratory incentives are a key part of the oil tax legislation championed by Governor Palin, as the legislation included tax credits for companies to both encourage new development and to reinvest in the existing infrastructure of older development. As Governor Palin noted upon signing ACES into law in December of 2007, “[w]ith the signing of this bill, we can turn the page and look forward to a new era of stability and investment opportunities developing Alaska’s resources, creating new jobs and a strong economy for years to come”.

This is exactly what has happened since the passage of ACES. It has given Alaska a strong economy. During her tenure, Governor Palin had the 2nd best job growth record in the country. Every year of her administration yielded a record high number of oil industry jobs in Alaska.  This news of a very busy exploration season indicates that indeed ACES has ushered in a “new era of stability and investment opportunities for developing Alaska’s resources”.

The companies that are involved in drilling these new exploratory wells are mainly independent Alaskan companies and foreign companies. Governor Palin’s ACES oil tax structure replaced Governor Murkowski’s corruption tainted PPT oil tax structure which favored Murkowski’s cronies in the oil industry. Governor Palin’s legislation on the other hand provides opportunity for all companies to be engaged in resource development. This kind of policy is what led to, as of January, a doubling in the number of companies filing taxes returns with Alaska since the passage of ACES, indicating that more companies see Alaska as a great place to invest in oil development. In addition to the incentives for development that ACES provides, it also was negotiated and passed in a transparent manner without undue influence from lobbyists or only certain oil companies.

One of the foreign companies is the Spanish company Repsol, who announced in March that they would be devoting more than three-quarters of a billion dollars for development on the North Slope (emphasis added):

“This deal is a perfect fit in our efforts to balance our exploration portfolio with a lower risk, onshore oil opportunities in a stable environment,” Repsol CEO Antonio Brufau said in a statement.

ACES has provided a stable environment for Repsol to engage in exploratory drilling that includes 5 rigs and up to 15 wells. This speaks well of the state level policies that Governor Palin implemented. Additionally, though, the fact that a Spanish company is seeking to engage in oil development in America may be a result of what Governor Palin warned about at the India Today Conclave speech in April where she discussed the effects of a “green” economy (emphasis added):

So as government locks up land & we lose good jobs in the ‘Conventional Resource’ arena, you may hear that “green jobs” will be the saviour! But look around the world & try telling that to the thousands of English & Scottish workers who’ve lost jobs as a result of government investments in “green energy” projects. A recent UK study shows that for every “green job” created, nearly four jobs were lost elsewhere in the economy due to lack of affordable energy! Same story in Spain – investment in “green jobs” brought massive debt, skyrocketing energy costs & 20% unemployment.

Spain has proven oil reserves of about 150 million barrels. While this is nothing compared to the vast resources available in Alaska, it is certainly worth noting. Between 2005 and 2009, Spain’s oil production volume has decreased by nearly eight percent. Has a focus on “green” energy (leading to reduced oil production) also caused Spanish oil companies to seek development opportunities elsewhere because these areas are a “stable environment” as Repsol said of Alaska? Should not Spain’s example serve as an economic  warning to America as Governor Palin indicated? Will an aversion to traditional fossil fuels development lead American oil companies to explore more profitable options elsewhere?

It has become increasingly evident that Governor Palin’s ACES legislation has done just what she intended it to do—spur economic growth, create jobs, and provide stability and continued oil development.  It has not only provided opportunities for development by the likes of ExxonMobil or Shell, but it has also provided independent companies and foreign companies to invest in exploration. As our current administration seeks to create a “green” economy, the successes of Governor Palin’s administration should cause America to look north to the future in order to truly win the future.

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Sarah Palin Nails Obama On His Latest Scandal: Drillgate

Another day an other scandal from the most corrupt president in American history. One of the things our president promised during his campaign, in his best Orwellian “newspeak,” was transparency. Of course, like everything else Barack Obama uttered, this too was a lie.

Let’s look at some of the lies Obama has told, just about transparency alone: Obama promised health care negotiations would be broadcast on C-SPAN. Never happened. Instead, most of the negotiations were held behind locked, closed doors.

Obama promised that all legislation would be made available online for every American to read before it was signed into law. What we got in reality was such a strong push to bamboozle the public, and pass horrible legislation, that not only were the American people actively prevented from seeing legislation before it was passed, so were members of Congress!. We’ve had bills with thousands of pages of insanity, crafted in the dark of night, behind closed doors, that have been signed into law by the president, without being read in total by a single sitting member of the most corrupt Congress in history.

The president has promised bi-partisanship, and continues to give it lip service, but in reality the Republican party has been locked out of all negotiations on every issue.

In short this is the most secretive and corrupt government we have ever had.

This latest scandal regarding transparency involves one of Sarah Palin’s areas of strong expertise, energy. As everyone knows, America has more than enough natural resources to become energy independent, but the zealots and flat earthers are doing all they can to prevent this from happening.

This, of course, is insanity. At a time when we have massive unemployment, and rising energy costs, it is criminal for the nation to have it’s own energy resources placed off limits by an out of control, radical, tyrannical government. We send nearly one trillion dollars a year overseas, often to hostile regimes, in order to purchase the lifeblood of our economy, oil.

This is simply insane.

Sarah has found a new scandal concerning energy that must be highlighted. It seems now that the Obama administration is actively trying to hide the fact that most Americans are demanding we use our resources. In her latest Facebook post Sarah discusses this:

Drillgate

Many of us appreciated the President mentioning in his State of the Union address that “tough decisions” had to be made regarding offshore drilling. People have had doubts about his seriousness in regards to domestic energy policy because our Department of the Interior dragging its feet on Virginia’s offshore oil and gas leases. Still, we’ve held out hope that America’s voice will be heard on energy.

And now Vince Haley at Big Government reports this shocker:

In April of 2009, during a discussion about offshore exploration in San Francisco, Salazar said that President Obama directed him to “to make sure that we have an open and transparent government” and that “these are not decisions that are going to be made behind closed doors.” Salazar went on to say that President Obama wanted to make sure that DOI was “maximizing the opportunity for the public to give us guidance on what it is that they want to do.”

Yet, more than four months after the comment period ended, the Department of the Interior has failed to make any public announcement about the results, even though sources have told American Solutions for months the comments show a 2-1 advantage in support of offshore drilling.

It took American Solutions almost four months and the power of the Freedom of Information Act to finally uncover indirect confirmation that, out of over 530,000 comments submitted, pro-drilling comments outnumbered anti-drilling comments by a 2-1 margin.

In an email dated October 27, 2009, Liz Birnbaum, director of the Minerals Management Service, informs other Interior officials that a preliminary tabulation of the results of the comment period had not yet gone to Secretary Salazar, adding “[s]o the Secretary can honestly say in response to any questions that he’s [SIC] has not yet seen the analysis of the comments – staff is still working on it. I did, however, confirm to him the 2-1 split that these guys [at American Solutions] are emphasizing.”

When a public employee is on record condoning purposeful deception of the American people, the taxpayer should no longer have to fund his or her job. Secretary Salazar should immediately fire Liz Birnbaum for purposefully deceiving him, and in turn, the American people. It’s not possible for the Secretary to honor pledges of openness, honestly, and transparency in government if his staff is going to deliberately undermine such pledges.

Public opinion polls already measure near 70% support for offshore drilling, so the results from a public comment period that reflect the same public sentiment should not be surprising. But after all this talk of wanting the public’s input, Secretary Salazar and his team must find it a real stumbling block to have to explain all their anti-energy development actions in light of the comment period results to which they previously attached such great importance.

As Haley notes in his article, it’s astonishing that the Obama administration is dragging its feet on offshore drilling at a time when we’re so desperate for economic recovery and jobs. It’s no surprise that an overwhelming majority of Americans support offshore drilling: it will provide millions of good jobs and billions in revenue, and it will make us more secure by reducing our dependence on foreign oil.

Mr. President, we appreciate you asking for our input. We’ve provided it, so thank you for accepting it. With no time to waste, it’s time to listen to the American people – finally – and drill, baby, drill!

– Sarah Palin

Another outrageous web of lies and deceit from the Obama administration.

This is some powerful information and I urge readers to take the time to go to every link that Sarah has supplied to learn even more.

Energy is the lifeblood of our nation’s economy. It effects every aspect of our lives. As the American Energy Alliance notes, offshore drilling would significantly add to our nation’s economic health. Some of the benefits include:

* $8 trillion in additional economic output (GDP)

* $2.2 trillion in total tax receipts;

* 1.2 million new, well-paying jobs annually across the country; and

* $70 billion in additional wages each year.

At a time we have massive unemployment and underemployment, and an unsustainable national debt, and budget deficit, it is simply criminal not to be exploring for energy in every crack and crevice where we know there is energy to be had.

Folks ask us from time to time why we support Sarah Palin so fervently, well there are many issues on which we feel Sarah is eminently more qualified to lead the nation than anyone else, but it is her expertise on energy issues, her understanding of the significance of energy independence that we respect the most.

Being free and independent is a basic American right, but as long as we must bow to other nations, nations that do not have America’s best interests at heart, we will never be truly free, or independent. We will never have true national security.

Sarah gets it.

It’s time we hold the most corrupt president and the most corrupt Congress in our nation’s history accountable. It’s time we demand they listen to us and do as we say. In short, it’s time to Drill baby, drill!

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