Oil Debacle
Dear Editor: Astonishing to me to read Sen. Stedman’s characterization of the oil debacle as one of ‘‘public perception.’’
Mr. Stedman would be wise to remember how many Alaskans participated in construction of the Alaska oil pipeline. All of whom would remember the implication of a ‘‘cost-plus’’ construction economy. Open-ended contracts, where profit margins are tied to expenses. We remember a lot of waste, like crews sitting in buses for days on end.
Some of us remember that the state and federal governments bore the costs of that waste, by allowing the petroleum producers to deduct their expenses from oil royalties. We Alaskans paid for that pipeline.
‘‘In 1976 the oil fields were expected to last 20 years. Now 35 years later the multi-national oil producers have long-since exhausted their depreciation. From the beginning they’ve gotten what ACES promised, ‘help with up-front expenses.’ Now with drilling occurring at breakneck pace, and prices skyrocketing, they want to abridge the promise that the state would cash in when prices for oil are high.’’
Stedman is right, there are problems with public perception, the problem is there are tens of thousands of us. Our perceptions are based on eyewitness experience.
And, our cynicism toward political shenanigans, in Juneau, are a reflection of personal experience.
Sigurd D. Rutter, Sitka
