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Make Alaska Competitive Urges Alaskans to Act on ACES

February 28, 2012
MAKE ALASKA COMPETITIVE COALITION

It’s time to speak up to take control of our future

The Senate Resources Committee will take public testimony on oil and gas taxation today and tomorrow from 6 p.m. to 8 p.m.

You can help make the case that Alaska is uncompetitive when it comes to attracting the billions of dollars we need to increase oil production. Senate Resources is holding two public hearings so constituents can weigh in on the debate:

Tues., Feb. 28, 2012 from 6 p.m. to 8 p.m.

Wed., Feb. 29, 2012 from 6 p.m. to 8 p.m.

Three ways to participate:

  1. Testify in-person at your local Legislative Information Office ( click here for locations)
  2. Testify in-person in Juneau
  3. Write to the co-chairs of Senate Resources Committee:

You can also watch and listen to public testimony live online at www.AKlegislature.tv (for observation only).

It’s critical that we regain our competitive edge by making Alaska a more attractive place to invest. Please take advantage of this rare opportunity to testify and make a difference.

Helpful Links:

Make Alaska Competitive Fact Sheet

Governor’s Action Alert

Competitive Factoid

How is Alaska doing compared to other oil-producing regions? Here’s one example that shows how Alaska is falling behind when it comes to attracting new investments.

"Alaska’s oil and gas company" ConocoPhilips 2012 capital budgets

Capital investment is the key to more oil production. One of Alaska’s major oil producers recently announced its capital budgets for 2012. Take a look at how Conoco’s planned spending in Alaska stacks up with its Lower 48 and international commitments:

  Planned 2012 2008 Actual Difference
Alaska $900 million $1.4 billion DOWN more than 35 percent
Lower 48 $4.8 billion $2.6 billion UP nearly 85 percent
Internationally $7.6 billion $5.4 billion UP more than 40 percent

Source: Petroleum News, Feb. 26, 2012

Competitive Perspective

Pedro van Meurs, oil and gas consultant to the Alaska Legislature, recently testified that the maximum rate of ACES combined with other state and federal taxes creates a "combined tax rate of 85.25 percent under high prices."

"Such an excessive tax rate reduces significantly the incentive for companies to be efficient because they can only keep $.1475 of every dollar saved," said van Meurs.

He also testified that in order to attract new investment in a "major way," Alaska must adopt two significant political changes in addition to actual fiscal changes:

  1. Alaska has to define competitive fiscal terms for the entire range of oil and gas resources, so investors know what the terms are.
  2. Alaska has to offer fiscal stability on these terms for large new projects, so investors know that Alaska will honor these terms for a significant duration.

Source: Pedro Van Meurs presentation to Alaska Senate Finance Committee, Feb. 13-14, 2012.

Learn what you can do to help make Alaska more competitive.

Listen to our latest radio ad entitled "Lifelong Alaskans"

Click here to listen to our newest radio spot featuring a proud union member.

 

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