Book Review: 'Capitol Crude' Examines Oil Industry's Influence on Alaska Politics

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The book 'Capitol Crude: The Impact of Oil on Alaska Politics' by Lisa Weissler examines the long-standing tug-of-war between Alaska lawmakers and the oil industry since the state's founding. The book chronicles how the oil industry's lobbying efforts, campaign donations, and public relations campaigns have gradually eroded Alaska's ability to effectively tax and regulate the industry, despite the state constitution's mandate to manage resources for the maximum benefit of all citizens.

Why it matters

The book provides a comprehensive look at how the oil industry's outsized influence in Alaska politics has contributed to the state's current fiscal and political dysfunction. Understanding this history is crucial for Alaskans seeking to regain control over their natural resources and chart a more sustainable path forward for the state.

The details

Weissler, a former legislative aide and natural resource attorney for the state, details how the oil industry has fought tooth and nail against efforts by successive Alaska legislatures and governors to impose higher taxes and stricter regulations. The industry has repeatedly threatened to suspend or abandon development plans if taxes were raised too high, leveraging the state's dependence on oil revenue. Over time, the state shifted from resisting the industry's demands to enabling and even cheering them on, leading to the passage of tax giveaways like 2013's Senate Bill 21.

• The Swanson Oil Field was discovered in 1957, shortly before Alaska became a state in 1959.
• The 1968 Prudhoe Bay oil strike meant the state stood to receive billions in royalties, sparking a long battle over taxation and regulation.
• The 2006 Veco scandal exposed bribery of legislators by the oil industry, leading to the rise of Sarah Palin's brief efforts to take on the industry.
• In 2013, the Alaska legislature passed Senate Bill 21, a tax scheme that Weissler calls a 'virtual giveaway' of state resources to the oil industry.

What’s next

The recent shift to ranked choice voting in Alaska elections may help bring a more politically moderate legislature less beholden to oil industry interests, according to Weissler. However, the state still faces major challenges in regaining control over its natural resources and charting a sustainable fiscal future.