Last week I was in Anchorage to participate in a two day seminar on petroleum economics and fiscal systems presented by consultants from Wood Mackenzie, a leading international firm specializing in the world’s energy industries. A little over a year ago, the Legislative Budget & Audit Committee, of which I am the Vice-Chairman, engaged Wood Mackenzie and other consultants to provide the legislature with updated information on hydrocarbon fiscal regimes around the world. This information is vital in helping us create a more lasting and stable fiscal system for Alaska.
Over fifty legislators and staff were in attendance to hear presentations that focused on the various types of fiscal arrangements entered into between oil producers and governments around the globe. The consultants spent the first day discussing the key variables and calculations used by oil companies when deciding whether or not to invest in a particular development project. They also talked about the most common types of fiscal regimes used by governments to tax petroleum production. On the second day, the consultants provided informative case studies on the petroleum tax structure in five different countries.
I was glad to see so many members of the legislature participate in this seminar. Policy issues affecting oil and gas taxation will continue to be hotly debated in the coming legislative session. Legislators need access to as much information as possible to make the best decisions for Alaskans.
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