CWN Briefing Tomorrow Morning - Ensuring Alaska's Competitiveness
Tomorrow, Tuesday, February 8, 7-8am
Chart Room, Hilton Hotel
Breakfast Briefing: Members $20, Guest $25
Governor Frank Murkowski will speak to Commonwealth North Tuesday, February 8th from 7-8am in the Chart Room at the Hilton Hotel on the need for the state to provide an environment of stability in its tax policy to make Alaska competitive globally. Alaska's leaders have faced similar challenges. It is critical for long term state public policy planning that we remind ourselves of the historical challenges and solutions pivotal to this issue. We must position ourselves to take advantage of fluctuating global and American markets.
The vital public policy issue concerns the incentives associated with additional oil and gas development on state lands while ensuring that an appropriate share of that development goes to the citizens of Alaska. A state's taxation policies can make-or-break a business' decision on where to locate. Tax policies are among the most visible indicators of how "open-for-business" a state really is. Alaska's economy is built mainly on the production of and the exploration for oil. One-third of Alaskan's livelihoods are directly and indirectly tied to oil exploration and development in Alaska.
Oil production in Alaska has declined from 2.1 million barrels per day in 1988 to less than 700,000 barrels per day today, and is expected to continue to decline by more than five percent per year. Exploration drilling activity in Alaska is down nearly two-thirds and over $2.5 billion in North Slope oil projects have been deferred while other oil basins in the world that offer competitive advantages for investment in oil development are thriving economically.
There are huge reserves of offshore and onshore oil that could impact Alaska's vitality, but face immediate challenges that Alaska's policy makers must address. Governor Murkowski's remarks will concentrate on how Alaska can reverse the current momentum of decline by creating a more attractive and competitive environment for expanding investment and reinvestment by the oil industry.
Commonwealth North's Oil Investment Tax Structure Study
It is the responsibility of Alaskans to ensure the State establishes a fiscal and tax structure that does not inhibit growth. Commonwealth North's Board of Directors is currently conducting a study to determine if and to what extent investment in Alaska's oil resources is conducive under the current oil tax structure and what action may be taken to establish tax policy, amend law, and reform regulations to re-incentivize investment and increase the competitiveness of Alaska relative to other oil basins. This study is open to all members of Commonwealth North and should be completed by March 2011.
Learn more about Commonwealth North's Oil Investment Tax Structure Study