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Make Alaska Competitive Coalition: January 25th Update

It’s time for the public to weigh in

Alaskans will get their first chance to weigh in on how to fix Alaska’s plummeting oil production from 5:30-7:30 p.m. next Tuesday and Thursday, Jan. 29 and 31.

Sen. Peter Micciche        Sen. Mike Dunleavy

The public hearings are before the Special Committee on TAPS Throughput, co-chaired by Senators Peter Micciche and Mike Dunleavy.

Micciche has said the special committee – one of two formed to look at energy issues - “is not an oil tax committee,” but will include economic items in the agenda. The Soldotna freshman said the panel would address technical obstacles to increased production ranging from North Slope water and gas handling to “access issues and efficient permitting.”

“Ultimately the goal is a long-term plan for production in Alaska, so we’ll be looking at decoupling viscous oil and gas from traditional North Slope production and incentivizing new oil,” Micciche said.

Dunleavy, from Wasilla, set a high bar for the committee: “We’re pretty optimistic that we can turn around the drop in flow-through in the pipeline and be able to sustain and maintain the long term revenue picture for Alaska,” he said.

The TAPS Through-Put Committee meets Tuesdays and Thursdays at 3:30 in the Beltz Room.

To participate in next week’s public hearings, click here for a list of Legislative Information Offices.

Highlights from State's Jan. 22 presentation to TAPS Committee

    TAPS has transported over 16.3 billion barrels of oil and natural gas liquids since June of 1977. Production peaked at 2.2 million barrels per day in the late 1980s, representing 25% of U.S. domestic production

    Since its peak, however, throughput has steadily declined; today, TAPS is 2/3 empty and declining at an average of 6% per year

    TAPS throughput decline threatens economic disruption and the very existence of our pipeline

    We must encourage industry to invest in exploration and development of conventional and unconventional resources on state and federal land, onshore and offshore

    TAPS has plenty of capacity for increased throughput

    Most near-term critical economic issue facing the state

    Less oil in the pipeline year after year takes away revenue from future generations—the ultimate giveaway

    Reconfiguration, 1.2 million barrels/day

Click here for the complete presentation.

Governor’s bill gets committee assignments

The bill Gov. Sean Parnell sent to the legislature focuses on increasing production by encouraging investment through the elimination of progressivity. It also makes substantial changes in the credits currently offered, eliminating some and making others redeemable only against production.

The legislation was assigned to committees Jan. 16: House Bill 72 to the Resources and Finance committees; Senate Bill 21 to the newly formed Senate Special Committee on TAPS Throughput and to the Resource and Finance committees.

Click here to read the bill, the fiscal notes and the governor’s transmittal letter.

Click here to view the Governor’s weekly message on increasing oil production.          

Why we need to act NOW

    North Slope oil production has fallen by more than 200,000 barrels a day since ACES was passed in 2007.

    Today the trans-Alaska pipeline is operating at less than one-quarter of the volume it once carried.

    Alaska is not attracting the capital it needs to stem the decline. ConocoPhillips plans to spend “about 1 billion” in Alaska this year, according to Alaska President Trond-Erik Johansen. “When you look at the base development speed and pace in the legacy fields, it’s the same (budget) as 2006,” he said.

Even more reasons for action this session

Concerns over revenues are worrying legislators, and there is uncertainty about how much money will be available for lawmakers to supplement the $1.8 billion Gov. Sean Parnell has proposed for his capital budget. The reason is oil production. North Slope crude oil production during the last six months of 2012 trended well below levels forecast by the revenue department. Production averaged 513,629 barrels per day (bpd) for the first half of FY 2013, which began last July. That’s well below the average production forecasted for the fiscal year, which was 552,800 bpd. Part of the drop can be blamed on large maintenance projects last summer.

This week’s calendar

Friday, Jan. 25

9 a.m. – House majority Q&A, Gavel-to-Gavel or alaskalegislature.tv

Tuesday, Jan. 29

10 a.m. – House Democrats Q&A, Gavel-to-Gavel or alaskalegislature.tv

5:30-7:30 p.m. – Public hearing on SB 21, Special Committee on TAPS Throughput, Legislative Information Office

Wednesday, Jan. 30

10 a.m. – Senate Democrat minority press conference, Gavel-to-Gavel or alaskalegislature.tv

Thursday, Jan. 31

10 a.m. – Governor press conference, Gavel-to-Gavel or alaskalegislature.tv

5:30-7:30 p.m. – Public hearing on SB 21, Special Committee on TAPS Throughput, Legislative Information Office           

Many ways to get involved

In addition to testifying at public hearings, MACC encourages supporters to contact their legislators, write letters to the editor and call in to talk radio.

Here are sample letters to editor and information on how to submit one.

Here is information on how to call in to talk radio shows.

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