Behind The Oil: Veco’s Bill Allen

Who is the man behind the key scandals erupting in Alaska? It’s Bill Allen, former CEO of Veco Corp., of course. But how did he get to be such a political force in the state? The Los Angeles Times take us through Allen’s story:

Of all the scandals and investigations, the one that has drawn the most attention here — and that could lead to a watershed change in Alaska politics — centers on Allen, a high school dropout from Socorro, N.M., who arrived in Alaska in the 1960s as a welder.

When oil was discovered in Prudhoe Bay in 1968, Allen formed the VECO oil-services company with a partner who later left, and then rode the roller-coaster economy of the Alaska oil fields.

Veco filed for bankruptcy in the 1980s, but was saved by (of all things) the Exxon Valdez spill which drenched Prince William Sound with millions of gallons of oil. Veco got the major contract to clean it all up.

Allen had become a big political player in Alaska by then, and his clout only grew over the years. The Times points out that it’s hard to pin down Allen’s drive, whether its greed or a thirst for political power (or both).

Regardless, Allen’s politicking focused on pushing through development projects. Eventually, he became the face of oil lobbying.

Allen’s biggest effect has been through political fundraising and the access that buys. Allen used his wealth to become the oil industry’s chief lobbyist, and was so entrenched in Juneau that when he ran afoul of state lobbying regulations, he got them changed.

“To me he was one of those tall, gruff cowboy types who I always thought lived by a code,” said former state Rep. Ethan Berkowitz, a Democrat. “It was his own code.”

Allen became so entrenched in Alaska’s system that news of his guilty plea “came as a shock even to politicians who had seen Allen at work.”