YOU CAN STOP REINVENTING THE WHEEL, THE HAMSTERʼS DEAD

In the midst of our current political environment, one would assume we have an army of
tax analysts and petroleum engineers in our Capitol. As it turns out, we do; but none of
them are elected officials. In fact, even our most seasoned lawmakers seem to have
forgotten their role. In the last decade, our stateʼs tax structure (the terms we hold to oil
companies for harvesting our resources) has been altered multiple times. While this
seems reasonable to a profession that meets each year to revise capital and operating
budgets, it is baffling to those that make investment decisions on a horizon that spans
decades.

While I am no fan of “Big Oil,” I recognize that whether the terms of the deal are
perceived as ʻgoodʼ or ʻbad,ʼ a qualitative measure to be sure, there is nothing
qualitatively good about the term ʻunpredictable.ʼ

When a decision to invest in exploration is made, close to a decade will pass before oil
reaches a refinery. And while it is important for our state government to strike a fine line
to ensure that each side gets its “fair share,” a willingness to stick to the agreement,
whatever the negotiated terms, is a necessary prerequisite to sound policy.

And herein lies the problem. The Legislature appears to be going about its business (a
term applied loosely here) without regard to long-term investment. They are elected to
pass legislation on behalf of their constituents and appropriate funds through the
budget. Period.

The necessary preoccupation with reelection can account for a portion of this myopic
perspective, but doesnʼt fully account for their responsibility to plan for the Stateʼs long-
term health. In the current session, less than ten bills passed the House and Senate,
the majority of which do nothing to facilitate job growth, community safety, or any of the
many problems facing our stateʼs future (i.e. substantive legislation).

Whether it is health care or education, transportation or social services, the
preoccupation with how much to give oil companies in exchange for our resources have
pushed everything else off the agenda. Compounding this legislative ineptitude is the
the realization that this conversation - oil royalties - has been held multiple times in the
last decade.

So, while many speeches and proclamations have been made on behalf of our stateʼs
future, little has been done in terms of legislation; the actual product our lawmakers are
hired to create. While no one would argue the terms of this elusive tax structure are
inconsequential, one would hope our elected officials possess the courage and self-
confidence to stick with whatever plan is reached, so that upon passage, those that
must create wealth can go about their business.

Linda Biddle