Chief economist brings experience from around the globe

In his late 20s, Michael Williams found himself working as an economist for an arrogant and self-righteous boss.

Without knowing exactly why, Williams disagreed with his boss's methods and findings. The experience inspired him to return to school - a move that launched a career that would take him around the world.

Nearly 30 years after that bad job experience, Williams is an accomplished economist and entrepreneur with wide-ranging experience in the oil and gas industry, including working for Marathon Oil Co., the government of Saudi Arabia and the International Energy Agency.

Early this year, Williams succeeded Chuck Logsdon who retired as the chief economist of the Alaska Department of Revenue.

Excitement from the start

Williams began his new job on Jan. 11. The next day, his work became even more interesting when Gov. Frank Murkowski announced a controversial plan to raise taxes on nearly 10 percent of the oil produced in Alaska.

Williams said it is important for the state to recognize that the purpose of increased taxes, the resulting revenue and the reaction from the companies paving the tax are all connected. By increasing the amount of taxes oil producers pay, the state generates more revenue as the oil companies pay out more cash, making their operations in Alaska less profitable.

After the tax hike, if the companies' Alaska operations prove to be less lucrative than some of their operations in other parts of the world, the companies may spend their investment dollars in places other than the 49th state, Williams said. "I think the state has to realize that companies have a portfolio of investments."

Williams is formulating a way to create a model showing how oil companies' investment priorities relate to the amount they are taxed in different parts of the world. The model would...