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OPINION: SB23 may pave way for small oil drilling operations in rural Alaska

June 15th 5:17 pm | Jason Evans Print this article   Email this article   Create a Shortlink for this article

Roughly two weeks ago, Governor Sean Parnell signed SB23 authorizing tax credits for oil and gas exploration and liquefied gas storage.

This was not the bill that was in the news almost daily - the one that gave major oil companies such as ConocoPhillips, Exxon Mobil Corp. and BP billions of dollars and created big oil tax credits. It was also not the bill the governor called an unsuccessful special session to discuss last month. This was rather a small tax credit bill that may have more of a direct impact for rural and remote communities in our state.

This bill allows credits to drill in remote parts of Alaska that may benefit rural communities. It allows the gas to be used locally and exported, and may open the door for exploration of smaller fields that would be economical otherwise. The Bill specifically addresses parts of the Interior and Northwest Arctic, but this could be something the Legislature could expand to other parts of rural Alaska if local gas is found and developed in these two areas and proves successful in helping rural communities.

As we experienced this past winter, heating our homes and generating our electricity is getting more and more expensive. We have the highest energy costs in the country, yet we have huge natural resources of oil and gas. To keep our communities viable, we need to use our resources to benefit our communities. It's always interesting to me to hear how expensive it is to heat homes in places like Fairbanks and Homer with our high prices for home heating fuel, but that same fuel is another 30-80 percent more expensive in rural Alaska village.

Hopefully, SB23 will be a step toward reducing that cost and loosening the noose heating costs have on rural Alaska.

 


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