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The Alaska Support Industry Alliance grows from humble beginnings For 22 years pioneer leaders and Juneau junkets have promoted the interests of the oil field support industry Steve Sutherlin PNA Managing Editor
The Alaska Support Industry Alliance was not born with a silver spoon in its mouth. It survived because of the sensible leadership of a handful of people who recognized a void of representation and filled it.
“The Beaufort Sea lease sale was the original issue,” said Joe Mathis, founding Alliance president.
“At one time the office of the Alliance was in one of my bedrooms,” Mathis said. “I was passing out keys to my house,” he said
“It was a small room with a desk and five people,” said Val Molyneux, founding member and past president.
“Joe Mathis was the first president, Paul Harding was the political individual, there was Bill Bennett the attorney and Bill Webb, and I was the fund-raiser,” Molyneux said.
“We had some mining members at first but we were prioritized toward oil and gas,” Mathis said.
“It came together as a result of the oil industry requesting the contractors and the service companies to take a separate position and help out with the challenges that the industry had faced and still does,” Molyneux said.
“It was an interesting start, in 1979,” Molyneux said. (Molyneux joined VECO the same year.)
“It was simply put together, there was no money,” he said, “To this day I’m still amazed.”
It had its ups and downs but we became good friends and strong competitors,” he said, “We considered ourselves a unified voice.”
“We incrementally brought on a few members and a few more directors,” Molyneux said.
“Until we got credibility it was hard to attract quality members to the board,” Mathis said, adding, “Today we have people actually campaigning to be on the board.” Pilgrimage to Juneau Mathis said that despite its humble beginnings, the Alliance was well received on its first mission to Juneau in 1979.
“They took us seriously because we represented a sector of the economy that hadn’t been represented,” he said.
“To facilitate constituent contact between support industry business people and their elected representatives in the state’s capitol, Member Juneau Fly-in events are organized twice during the Alaska State legislative session ... typically in February and April,” the Alliance said in its annual report.
Mary Shields of Northwest Technical Services was president of the Alliance in 1989 and 1990.
“The Juneau trips are workaholic trips,” Shields said.
“We’re in there selling, we meet with legislators, and we meet with their aides,” she said.
“Especially the aides, without the aides they don’t get anything done,” she said.
“The Juneau trips are a good way for people that don’t get a chance to meet legislators to see them eyeball to eyeball,” said Bill Stamps, Alliance president.
“It opens doors,” he said.
“Any association that sends a delegation down to Juneau is going to get some attention,” said Bob Stinson, Alliance president-elect. “We try to make clear the organization’s priorities in receptions with legislators,” he said.
“It’s an eye opener for a lot of our membership; for two days there isn’t a minute’s rest,” Stinson said. Making the message clear Mathis said an early and continuing mission of the Alliance was to promote a stable tax environment in Alaska.
“We put out a bumper sticker that said, ‘Oil Pays My Taxes and Feeds My Family,’” he said.
“We told the legislature and the State Government that when you do damage to the oil industry you hurt the people and companies that rely on oil development,” he said, adding that major companies will pay taxes but want a predictable tax level they can build into their business plans.
In 1986 and 1987 when there was a crash in the state economy legislators were tempted to alter tax policies, Mathis said.
“We were there to maintain the stable tax environment,” he said.
“I believe we have achieved the vision that the original founders had,” Mathis said.
Stamps said the organization is very involved in speeding the permit approval process: “Sometimes the state is pretty slow to deliver permits, that affects jobs and costs,” he said. “The state needs to take a hard look at how they administer contracts.”
Stamps said the Alliance must remain concerned about the state’s fiscal condition.
“As long as oil prices are high our politicians are reluctant to develop a sound fiscal plan,” hes said.
“When prices are high that sense of urgency is lost,” Stinson said.
“Commercialization of North Slope gas, that’ll be on our gun sights for the next few years,” Stinson said.
Shields said the most noteworthy activities of the Alliance center on opening lease acreage.
“The Alliance is working with the industry, the legislature and the government on making sure fields are open for lease,” she said. “Without leases there is no work, and without work there are no jobs for the workers.”
“New fields and new drilling affect production and literally every worker in Alaska feels the trickle down affect,” Shields said.
“Everything that the Alliance does has to do with oil development and mineral development,” she said.
Shields said the solidarity the Alliance has given the support industry has made it possible for complex projects such as the building of modules to take place in Alaska.
“The Alliance has also provided support for training so we don’t have to bring people in to do the jobs,” she said.
Molyneux said that the Alliance would play a key role in mitigating the concerns involved with the miles of pipe needed to bring 23 trillion cubic feet of gas to the market. Lots of work but not all work “We’ve always had fishing tournaments and golf tournaments,” Mathis said. “There’s also the annual Oil Patch Bash, to kind of get out of the all business mode.”
Shields said the Alliance has worked hard but there has been some fun along the way.
“There was a rally we staged at the outside of the Sullivan Arena with big blocks of baloney, telling the legislature to cut the baloney,” she said.
“There were key eras for the Alliance where it became higher in stature,” Molyneux said.
“It was significant when Chuck Becker arrived and took a job for peanuts as charter executive director,” he said.
“Milton Byrd worked for Tennessee Miller,” said Molyneux, “He came to town and added a level of professionalism, and it was under his guidance that Meet Alaska was begun.”
“(Byrd) put polish to the organization: he is an excellent writer, Molyneux said.
“Bill Webb elevated (the Alliance) and was a key player that ran the early membership drive,” Molyneux said.
“Larry Houle will take it to another level, he is a real estate man that understands the approaching oil industry and environmental issues,” Molyneux said.
“Chuck Becker believed in the mission of the Alliance; it was a labor of love,” Mathis said. The Alliance today “We were pretty efficient in the beginning, but of course we’re still efficient today,” said Mathis.
The Alliance has more to be efficient with as it turns 22 this year.
The 501(c) 6 non-profit statewide trade organization represents 350 businesses, organizations and individuals that derive their livelihood from providing products and services to oil, gas and other natural resource exploration and development.
“There are two tiers of members, one that is directly involved in the oil business and one that benefits from oil spending in the community,” Molyneux said.
Alliance membership includes oilfield service companies, transportation enterprises, wholesale and retail businesses, professional firms and private citizens.
In addition to its headquarters in Anchorage, the Alliance has established two chapter organizations in Kenai and Fairbanks.
As a collective voice for support businesses, the Alliance conveys industry concerns and positions to elected officials and regulatory agencies; the public; and oil, gas and mineral producers, it said.
The Alliance operates with four major goals in mind.
First, to foster and promote a conducive business climate through strong government relations programs.
Second, to improve public understanding of the relationship between political decisions, industry activity and Alaska’s economic health.
Third, to provide members with a competitive edge through exclusive benefits.
Fourth, to foster a well equipped Alaskan work force through participation in educational programs.
The Alliance conveys the views of its members to clients, the oil and gas producers.
Contrary to the ownership of many producer companies, support industry businesses are primarily owned and operated by Alaskans, the organization said. This can, and has, created different views, particularly when it comes to business practices that involve Alaska hire, the Alliance said.
However, producers recognize and appreciate the role the Alliance plays in keeping the state open for business.
“The Alliance has been a positive force for the oil industry in Alaska,” said Kevin Meyers, president of Phillips Alaska Inc. “Your advocacy for safe and environmentally responsible exploration and development of Alaska’s oil and gas resources have helped make projects like Alpine and the NPR-A lease sale a reality,” Meyers said.
“Thanks in large part to innovations from the businesses this trade organization represents, exploration and development now leaves a much smaller footprint on the environment,” the Alliance said in its annual report.
“Oilfield productivity has increased phenomenally due to the industry’s technological advancements,” the organization said.
“Finding the balance between the nation’s energy needs, the state’s economic health, and protection of Alaska’s incredible natural environment is this organization’s calling,” the Alliance said.
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