Big Oil is conning Alaskans, governor

Letter to the Editor

Posted: Sunday, April 16, 2006

It is time for a reality check. Big Oil is engaged in a disinformation ad campaign to con Alaskans on oil taxes and a gas pipeline. Don't fall for it. No matter how often a phony story is repeated does not make it true.

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There are no state or federal laws or regulations requiring Big Oil's ad campaign to be any more truthful that political campaign promises. They're not trying to sell you a product or get you to buy stock. It is the legal duty of oil executives to maximize return to stockholders by any legal means necessary.

Big Oil will not walk away from Alaska because oil taxes are raised to a level compared to other countries in the world. Nor can they take the oil fields with them if they leave. There are plenty of smaller oil companies prepared to step in and pay increased taxes to earn the huge profits available.

Other countries are nationalizing their oil resources freezing Big Oil out. Why else do you think some big players who left Alaska in the past are returning?

The oil is Alaska's oil. It was not created by the oil industry as Big Oil would like the gullible to believe. If they could get the oil without hiring a single person, they would. When the oil is gone, they will leave and likely leave a mess behind.

Any one who believes that lower oil taxes will get a natural gas pipeline built any time soon needs to contact me to buy shares in my lunar gold mine. Big Oil is using it as a carrot to con some Alaskans, like our governor, into lower taxes on oil.

ConocoPhillips is buying Burlington Resources, a major holder of natural gas reserves in the Lower 48 and Canada for about $30 billion. Does anyone think ConocoPhillips management is stupid enough to flood the market with Alaska gas and destroy its investment in Burlington?

Other big holders of Alaska gas have gas interests elsewhere they can bring to market sooner and at higher profit. There is no benefit to them to build an Alaska natural gas pipeline any time within the next 10 to 15 years, and the Canadians are insisting their gas goes to market first while Alaska gas is in the ground. It won't go anywhere. There is no big cost to keep it there. Pure economics and pure profit motives drive big companies. Duty to stockholders. ...

Instead of harassing our Legislators, give those showing new backbone supporting Alaska a big hooray for standing up to our gullible governor and Big Oil.

William Phillips

Kenai



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