Oil and the state: cementing a growing partnership

Both the State of Alaska and the petroleum industry have profited, and should continue to do so in the future despite the current slowdown in exploration. Phillips is the only company which appears to be withdrawing just as exploration is gaining new life. Direct foreign investment from Japan and Korea may be necessary now that federal approval to ship crude to Japan is reviving interest in exploration. Political issues involve taxes and jobs, including union and non-union practices. Outside forces include OPEC-controlled oil prices because Alaska derives nearly 85% of its revenue from oil taxes and royalty. Cooperation between the state and the industry will help to ensure that both benefit from policy or legislative decisions.