In December, the Associated Press reported, "Conoco Phillips backs away from $1 billion budget." The Associated press went on to say: "Company executives said the budget was prepared in the fall before the legislature raised taxes."
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This is pure demagoguery by the oil companies and should be seen as how far the oil companies will go to deceive us.
And all Alaska legislators who parrot this nonsense should be questioned hard about whether they are looking out for Alaska or the oil companies during the next election.
As mentioned in the My Turn I wrote last month, oil companies will now need to turn to heavy oil since there are only seven known deposits in the world with more than 100 billion barrels, one of which lies between and above West Sak and Prudhoe Bay. Conoco Phillips, et al, will do whatever it takes to get that oil out as fast as possible! For more information, see Alaska's Viscous Oil Reserves Source: BP Exploration Alaska (Inc.) presentation to Alaska Department of Revenue, Feb. 18, 2005, which I link below.
Also, you can Google "Alaska heavy oil" for more information.
Much of the oil can be produced for less than $20 a barrel and apparently the companies can get upwards of 60 percent out of some deposits.
At $93 a barrel, 100 billion barrels are worth a fortune to the oil companies. Watch the production increase in the oil pipeline go forward.
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