By Carlos Calwianka, staff writer
Rick Rydell (born Rick Green) is the #1 Radio show host in Alaska; project manager; writer, bear hunter and arm wrestling champion. Named Alaska´s GOP man of the year (2004) Rydell is possibly the only media figure who can not only boast that he knows Sarah Palin and has spoken with her for hours at a time as well as being able to not take her calls to his morning program on KENI when he has other topics to cover. Rydell offered the following comments on Alaska’s current energy situation in a recent interview.
Rydell’s estimate of the recoverable oil reserves in Alaska´s North Slope, NPR-A, Chukchi and Beaufort Seas is approximately 55 billion barrels. In 1988 state production peaked at 2 million barrels/day. Today Alaska is producing approximately 650,000 barrels per day. What happened?
A-“Three words: Government, Government, Government. The combined taxes on Alaskan oil are the highest marginal tax rate in the world. When you take the royalty (12.5%) Subtract the lifting and transportation costs, ACES (base rate 30% plus progressivity on every dollar, oil prices increase over $30 of .04%) State Corporate Income tax, Property tax, and the Federal Corporate Income tax, the oil companies are left with very little.”
“And the Trans Alaskan Pipeline? Are we looking at a looming train wreck here?”
A- “The Trans-Alaska Pipeline (TAPS) was engineered for a load of 1 Million- 2 million Barrels of oil per day. At today´s rate of an average of 600,000 barrels per day it is quickly reaching its lower operating capacity. In its current configuration, engineers believe they can run the pipeline at 500,000 per day and they know they can´t operate it under 350,000 per day. Economically, the number is somewhere in between those two. At the present rate of decline of “through-put” the 500,000 bblpd threshold will be reached by 2014 and the 350,000 threshold will be reached in 2019. Somewhere between those two dates, the TAPS line will need to be rebuilt or torn down if policy remains the same. “
ANWR offers an additional 10.4 billion barrels of estimated recoverable oil according to the U.S. DOE. (b) What is ANWR really like and how much of it do oil companies want to use for drilling?
“ANWR is beautiful with panoramic picturesque views unequaled anywhere else for 92% of the refuge. In 1980 Congress designated .04% for potential oil and gas as the “1002 Area”, on the coastal plain where you can´t even see any mountains or trees. The proposed drilling [of ANWR] is best analogized as a postage stamp on a regulation American Football field, and a football field which is totally covered by snow 9 months and swamped by mosquitoes the other 3 months. “
“Any changes since Obama became president?”
A- “President Obama’s policies on oil and gas have matched that of [a] former 1/2 term governor [with] state policies to literally shut down all major oil and gas development on both Federal and State lands putting the US in the position to be more dependent on buying our nation´s oil from foreign countries.”
None of this sounds very promising.
To contact your Congressional Representative use this link:http://www.contactingthecongress.org/
To read more use these links:
http://www.akrdc.org/issues/oilgas/overview.html
http://www.eia.gov/oiaf/servicerpt/anwr/pdf/sroiaf(2008)03.pdf
This day in history August 30
1995: NATO launches Operation Deliberate Force against Bosnian Serb forces.
If you are not receiving coachisright.com directly, please signup using the RSS feature on the home page. It’s easy and always free. If you are having trouble receiving CiR.com or being able to comment on any essay please let me know at: kcoachc@gmail.com.
In this world you may have knowledge or you may have repose, but you may not have both. What have you done today to deserve to live in America?
Comments on this or any other coachisright.com essay can be sent by following the posting instructions below.
Related posts:
- As Obama hands America’s trucking industry to dangerous Mexican trucks Hoffa bleats like a sheep
- Union jackals will destroy classical entertainment industry because that’s what they do
- Holder renews attacks on America’s Banking industry: When will Banking Chairman Bachus stop him?
- Return of “broken glass” conservative voters means deep wide and continual trouble for Democrats
- Mother’s Day reminds us the abortion industry is still very powerful, won’t go quietly
Loading ...
"A- “President Obama’s policies on oil and gas have matched that of [a] former 1/2 term governor [with] state policies to literally shut down all major oil and gas development on both Federal and State lands putting the US in the position to be more dependent on buying our nation´s oil from foreign countries.”"
Good article, but what does this sentence mean? Matched who?
Ron Reale
realetybytes.com
Rydell is referring to Sarah Palin
To say that I have a vested interest in the continued encouragement of oil and gas development in Alaska would be grossly understating the issue. "Big Oil" puts a roof over my head and food on the table; as it does with many thousands of Alaskans; directly and indirectly.
There are countless numbers of businesses, some oil & gas related; but many are not, which rely upon the successes of oil and gas drilling.
Black Gold is still the largest financier of the State coffers; so we Alaskans are free of a State income tax for the nonce.
Once again, individuals trying to earn a living, get caught up and entrapped by the politics of both the Federal/State entities and the oil companies themselves. Throw into the mix the never-ending interference and aggressiveness of the environmentalists who frivolously sue, at the drop of a hat, and cause millions of dollars in damages to ongoing projects because they stupidly think that no one with ties to the oil business could possibly love the environment any more than they do; and we have all the makings for.
These eco-pirates wouldn't want you to know, of course, that companies like Conoco-Philips and British Petroleum both spend hundreds of thousands of dollars EVERY year on studies and research projects designed to minimize the "footprint" of the oil industry for Fauna and flora alike in Alaska.
Did you know, for instance, that major construction projects such as new well pads are undertaken only in the winter months when the tundra is frozen and that the additional costs of building "ice-roads" is mandatory for the movement of equipment? Ever seen an "ice-road" being built? If water isn't available at or near the site it is trucked in!
Arctic pipeline engineering is a science unto itself; unlike anything in other parts of the world; except Russia. The Russians however, don't seem to "get" the necessity to protect their environment as we here in Alaska do.
Your analogy of a postage stamp on a regulation sized football field (covered with snow 9 months of the year), was a fairly apt, graphic depiction of the tiny area in which oil and gas exploration and development could occur within the Arctic National Wildlife Preserve (ANWR). Though several football fields would be a more appropriate ratio. The vastness of it all is incredible.
Initially, all of the area now called ANWR was to be open to oil and gas exploration. Jimmy Carter changed all that when he designated the lion's share of it as a wildlife preserve.
Personally, I find very few places within the refuge which I would call beautiful. Mostly it is one swampy waterhole after another, like mini-craters, that contain more mosquitoes and harmful flies (to the Caribou and other critters) than the mind can imagine.
Yet, that infinitely small postage stamp parcel of land holds Alaska's future; probably, her survival depends upon it.
Bill Clinton, George Bush, and now the "anointed one" b.o. have all ignored the vital national security issue of developing America's oil and Gas. It has been too long a time for America to have NO realistic energy policy to keep us from being at the mercy of the mid-east oil cartels.
We know that Obama wishes to destroy the integrity and self-sufficiency of America; but what were Clinton's and Bush's excuse?
Sarah Palin, in her feud with the meddlesome intransigence of Alaska's oil industry, (and believe me they have deliberately dragged their feet in negotiations to build a gas pipeline in this State for nigh unto 30 years now, among other things!), and her desire to force the understanding upon the oil companies that oil and gas resources belong to the State of Alaska and NOT to the oil companies, was well intentioned. The State had been held hostage by "Big Oil" for decades. She was simply trying to stop the strangle-hold they held over our resources. Oil companies play "hard-ball", and without any other independent oil companies large enough to handle the fiscal responsibilities, there was no competition strong enough to force "the Majors" to behave and act like good corporate neighbors.
Did she make the right call ? It's all pretty much academic, because the 800 pound gorillas do pretty much whatever they want. Our present Governor, Sean Parnell, has been trying to reduce the taxes on the oil industry since he took office. Guess who his opposition is? The Democrats int he State House and Senate!
Ironically, "the Liar-in-Chief", is losing major royalties from oil and gas production which would help balance out trade deficits if we could sell some, (not all !), of that oil abroad! He is also losing out to Canada's oil and gas production and pipeline projects.
This is the first post I have been able to make in many weeks, as I have been unable to access the CiR web-site for some reason. Things are still messed up and I consider it true serendipity that my first attempt to post would be on an issue near and dear to my heart : Alaska and her struggles to rid herself of Federal Government intrusion into our commerce.
Joanne keep up the good fight to keep the Alaskan pipeline & oil and gas industry alive.