From a Brad Keithley Facebook post on where Alaska has fallen short on managing its oil patch:
There are success stories also where government owns the lands, but no disrespect intended, Alaska is not one of those and has done a horrible job at managing the lands. Basically we have lived off of the two large lighter oil discoveries at Prudhoe and Kuparuk (and a few satellites along the way) for decades and never had to do much else to manage the lands better. Now that those are producing at much lower levels, we don’t have a good strategy in place — as the owner of the lands — for further development. Given our position, the two best corollaries to look to are how the US has managed the Gulf of Mexico and Norway. The US has been successful in the GOM by only charging royalties and no severance taxes. The resulting low costs have encouraged investment and development, despite the higher cost and risk environment. Norway has gone about it differently by eliminating lease bonus payments, royalty and engaging in co-investment. As a result, even though it has imposed higher costs Norway actually has reduced risk and created alignment in a way that has enabled it to drive investment and activity in a way Alaska hasn’t….But of course …. no one wants to listen to that. The existing players on the Slope are satisfied with the current (largely non-competitive) arrangement where they set the pace of development and most of the Alaska players don’t have a clue (and don’t bother to take the time to learn about) alternative approaches, and as a result just rely on the current industry to continue to identify the terms for development.