Tuesday, March 17, 2015
When Pennies Count
Alaskan Oil Scene: So crude sinks to $44! A cartwheel away from an even bigger loss to Alaska – as we don't always get our “four bits” worth for “OUR” resources. The oil and gas and coal and gold and timber and water and other “depository” resources belong to the “citizens” and when exploited then sold at bottom basement fire sale close-out specials, dereliction smells of victory for someone else, not us! Case in point: With that oil “Cartwheel”, or for sake of clarity, if oil drops another “four bits” - which appears somewhat likely trend wise - well “Oh what a relief it is” kicks in for the “Independent” oil producers! Sure enough, thank Sarah for the “Independents”, as the only way you could lure them this far north to step on “Big Oils” groin, it required incentives! Yes, preferential “perks” that were never supposed to ever see the day of light, as nobody was convinced that oil would drop this low again – even though the “Outside Experts” warned the state legislatures to “Never-Ever” assume anything above $58 – as a comfort factor should things go south with oil's value. Wow, had we only listened to that advice. Can we sue the legislature for “negligence”? And these “perks” were NOT available “ever”, in over 40-years for the “Big Oil” - so it was a ways and means to bust balls! Look who's “groinads” are busted today? So, by the end of the week, ENI's leases at the Nikaitchuq will drop from the normal royalty to the lowest rate allowed by law – allowed for as a “perk”. I won't bother you with a bunch of numbers and calculations, but It means when in effect, about a $Billion$ buck loss to the state coffers this year alone! So, we need to start reneging on these promises, so what if the “Independents” get pissed off and pack up – hey Pioneer already left town, and good riddance and as soon as the “Careless Man” follows suit, then maybe “Big Oil” will once again get serious about its “mission” in Alaska, as being “sour losers”...well can you blame them?
Posted by Green Mountain Boy at 4:57 AM