Archive for the ‘Lucier’ Category

Breaking the impasse on ANWR and OCS (Part III): WSJ op-ed supports Alaska-style direct pass-through of royalties from oil/gas produced from OCS leases

September 8th, 2008 No comments

Last week the Wall Street Journal ran an op-ed by James P. Lucier, Jr., a managing director of Capital Alpha Partners, LLC, in Washington, D.C.

Lucier`s piece describes how Alaska shares its oil revenues with residents, and suggests that John McCain adopt a page from Alaska`s book to get popular support for oil and gas drilling in the OCS (on top of revenue sharing with the relevant states).  Here are Lucier’s key points:

this year every Alaskan will receive a $1,200 check as a share of the oil bonanza. (The check comes in addition to the
approximately $2,000 every Alaskan will receive this year as a dividend from the Permanent Fund, which was established by state constitutional
amendment in 1976 as a way of sharing the state’s mineral wealth with the people.)

A direct share in oil profits for every citizen is the ultimate incentive for more drilling. That’s why in Alaska drilling for
oil seems almost universally popular, while other states are drill-phobic.

The real comparison is …  between Alaska’s constitutional rule — that the people must share
directly in the state’s mineral wealth — and Mr. McCain’s proposal that coastal states should share in federal offshore oil revenue. His
plan is for the funds to be used for public purposes like roads, schools and conservation. A share of royalties dramatically improves
the coastal states’ incentive to support drilling. But if Mr. McCain offered every individual American a royalty check too, he might find it
easier to sell his program.

(emphasis added)

As I’ve previously noted, this makes eminent sense to me!

Let`s hope this good idea for royalty-sharing snowballs.  It`s something alot of people could get behind, even enviros – and if extended could vastly improve federal land management and could as well point the way to a rebated carbon tax.

Categories: ANWR, carbon pricing, Lucier, OCS, oil, royalties Tags: