Those are the stock tickers for BP, ConocoPhillips and ExxonMobil. They are shelving a $1 Billion Heavy oil project for the Prudhoe Bay field due to the recent tax rate change.
These types of projects are high risk and only are rewarding with oil at high levels. When the state hikes taxes twice in 2 years, these projects look much less appealing.
You will hear many people tell you that these three companies are bluffing and that this is a heavy-handed tactic and that they really can afford these types of projects.
The people that tell you this don't understand the economics of an aging oil field. They think that the oil companies pockets are infinitely deep and can fund any type of project and that they even set the world oil prices.
Listen carefully to these people and try not to laugh and feel sorry for them. They don't understand basic economics. You can witness this at ADN.COM which is the Anchorage Daily News website. Most of the posters have no idea.
www.adn.com
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