Alaskanomics

Video Clip: Marc Langland on Alaska's Economic Future

Northrim Bank Chairman Marc Langland issues a challenge to business leaders, policy makers and elected officials to take action to increase oil production in Alaska.

Alaska's Economy Needs Strong Leadership

by Marc Langland

Petroleum supports one-third of the jobs in Alaska, and 90% of our state budget. Oil is still the key to our economic future, and will be for many years to come.

Oil prices are volatile, and production continues to decline. We’ve compounded the problem with an onerous tax on a single industry that undermines investment in the very engine that drives our economy. State leaders continue to choose short-term windfalls for government when what we need is a fiscal strategy that will maximize the value of our resources and provide the foundation for long term fiscal stability in Alaska.

Alaska’s stake is made strongest not by high taxes on low production, but by the highest flow of oil through the pipeline. We have billions of dollars in assets lying dormant in the ground, yet our leaders continue to support policies that stifle investment in exploration and production. A barrel left in the ground gives us nothing – every barrel that is produced generates revenue for the State and supports jobs.

When the economy is strong and business conditions are stable, private-sector companies are confident that they can make investments that create more jobs and better pay for Alaskans. Right now, uncertainty about the future of our economy is dampening investment.

Alaska’s policy decisions are in the hands of our elected officials – and those decisions will have a significant impact on our economy and jobs for years to come.  The governor and the legislature have a responsibility to create an investment climate that allows the private sector, and the citizens of Alaska, to prosper.