Palin makes GOP stance on oil industry murkier

John McCain's campaign Web site says the Arizona senator and presumptive Republican presidential nominee "does not support a windfall profits tax" on oil companies. Such a tax, favored by Democratic candidate Barack Obama, would hinder domestic exploration and increase America's dependence on foreign oil, the site says.

But McCain's newly appointed running mate, Alaska Gov. Sarah Palin, makes the Republican ticket's stance toward the oil industry a bit murkier. Last year, Palin backed a massive tax increase on oil firms — a step that has produced $6 billion for the state treasury this year.

The tax escalates as oil rises above $52 per barrel; at current prices, the state collects about 75 percent of a barrel's worth including the new tax and other royalties, ConocoPhillips says.

A spokeswoman for Palin told The Seattle Times this summer that the new tax also includes incentives for oil companies to keep investing in new production. But oil companies argue that the tax increase discourages investment there.

Houston-based Conoco said it had scrapped a $300 million refinery project because of the tax. Fellow oil giant BP said it had delayed the development of the western part of the North Slope, where North America's most productive oil field lies, for the same reason.

Palin also appears to hold a different view than McCain on another key energy issue: She favors drilling for oil in the Alaska National Wildlife Refuge. McCain has voted against allowing oil exploration there.

Ángel González: 206-515-5644 or agonzalez@seattletimes.com