This past November, 15 legislators, including myself, wrote Governor Parnell requesting information regarding statistics on employment and oil and gas activity since the passage of ACES, then Governor Palin’s oil tax system which passed the Legislature in 2007.  A copy of the letter to the governor is included within this posting.

We received the Governor’s and Revenue Commissioner Pat Galvin’s response a couple of days ago.  This response is also included.

Galvin stated that the state had its highest industry employment in history in 2008. The 2009 numbers are preliminary, according to Galvin, but could be even higher.  It is stated in the response that industry spending has risen since the oil tax increase. Revenue Department forecasts based on company tax information indicate it may keep going up.

It appears however that many of the current oil industry jobs are maintenance projects on aging fields and that with declining production the state could face fiscal problems once the maintenance work is completed.

Information from the response shows the state approved 175 drill permits last year, the lowest number since at least 2000. In 2008, 203 permits were issued. It should also be noted that drilling permits have been in decline since 2005.

ACES Letter to Governor Parnell 12-7-09

Response to House Majority ACES Request 1-21-10