As the resource owner, Alaskans should receive a higher share as the price of oil or producer profits increase. Conversely, as the price of oil or producer profits decrease, Alaskans should receive a smaller share. As a matter of sound policy, this balances Alaskans’ interests with our producers’ interests by providing some relief to the producers during lower-price environments while providing Alaskans some offsetting benefit during higher-price environments.
Under SB21, Alaskans continue to take the risk of a lower-price environment while they lose most of the benefit from a higher-price environment. As a result, an increase to the price of our oil or producer profits does not help our economy nearly as much as it has in the past. This is a substantial reason why our economy is continuing to struggle even though oil prices are above $60 per barrel.
The Fair Share Act will increase our percentage share as the price of oil and producer profits increase.