With the state leasing land to exploration companies up on the North Slope and the passage of Prop. the last few years, there have been intentional attempts to attract more oil related businesses into supplying the services that lead to more production. With the second special session of the Legislature currently open and various negotiations taking place, oil drilling in the state is getting a new look over.
Caelus Energy had been one of the firms drilling up on the slope, yet it now is going into hold with fears of how the current tax and credit will possibly be altered. In trying to solve the current stand off between the state House and Senate, Governor Walker (who prior has been an oil case attorney) has proposed to get off the books quickly the hundreds of dollars which the state owes oil companies for prior drilling by Caelus or other producers. Meanwhile the state senate is wanting to boost the tax credits for producers by roughly a third of a billion dollars.
With the Senate and House at logger jams, Some in state government are thinking that the need to call special sessions and nearing of the July 1 deadline for coming up with a budget resolution (so that the state doesn’t have to come up with a government shutdown) show that strong negotiations are going to take place- yet not in time for the new fiscal year. Whenever it is solved, there certainly will be talk of changing the oil producer credit system one way or the other.