Fix ACES--Unleash Opportunity
Governor says Alaska has reached consensus on ACES reform
With just days left before the House and Senate gavel in the 28th Legislature, optimism runs high that the right team is now in place to pass meaningful oil tax legislation this year.
Both the House and the Senate leadership have made ACES reform a top priority – and the governor is working on new legislation.
In an opinion piece published across Alaska over the weekend, Gov. Sean Parnell said he has been “encouraged by the consensus that has emerged over the past year. … Although we may disagree at times on the details of tax reform, most Alaskans agree that something needs to be done. By building on that consensus and focusing on the opportunity before us, I am convinced we can come together collaboratively and move Alaska forward this year.”
Parnell laid out four principles for meaningful tax reform:
- It must be fair to Alaskans.
- It must encourage new production.
- It must be simple, so that it restores balance to the system.
- It must be durable for the long term.
Stay tuned for MACC Updates…
The Make Alaska Competitive Coalition (MACC) will continue its public education through radio and on-line ads, along with an active social media outreach.
MACC is a self-funded organization made up of Alaska Native leaders, businesses and a broad cross-section of Alaskans with the single purpose of strengthening our economy. This organization accepts funds from companies and individuals that do business in Alaska, but does not accept any money from oil producers.
Our mission is to promote increased investment, production and jobs to secure Alaska’s economic future.
To join MACC or contribute to its educational efforts, click here.
The longer we wait, the deeper the hole
Here’s some scary news. Bloomberg reports that North Slope oil production fell 6.5 percent last year – 40,000 barrels a day or 14.7 million fewer barrels a year. At $100/barrel, that’s an economic loss of almost $1.5 billion.
Some 582,150 barrels a day were produced in December. A year ago, the output was 622,355 barrels a day.
“In total, we’re not seeing enough new production to offset the natural declining rates of production from existing wells,” Ed King, petroleum economist for Alaska’s tax division in Anchorage, told Bloomberg. The North Slope output has declined every year since 2002.
Refineries on the West Coast are increasingly depending on imports and rail shipments from the Midwest instead of North Slope crude.