Time For The Public To Weigh In On Oil Tax Reform
Time for the public to weigh in on oil tax reform
Alaskans will get their first chance to weigh in on how to fix Alaska’s plummeting oil production when the Special Senate Committee on TAPS Throughput takes public comment.
5:30 - 7:30 p.m.
Tuesday, Jan. 29 & Thursday, Jan. 31
On Tuesday, testimony will be heard from Legislative Information Offices (LIO) in Anchorage, Fairbanks, Mat-Su, Kotzebue, Nome, Tok, Valdez and Unalaska.
On Thursday, testimony will be heard from LIOs in Seward, Ketchikan, Sitka, Petersburg, Wrangell, Barrow, Bethel, Cordova, Delta Junction, Dillingham, Glennallen and Juneau.
Please be prepared to present brief testimony urging the Legislature to make changes to the oil tax structure this session that will attract new investment in Alaska and increase North Slope production.
Talking points may include:
We are being out-produced by places like North Dakota and Alberta, but not because we don’t have the oil. It’s because Alaska is not competitive.
One-third of Alaska’s economy depends on oil. We need a robust and growing oil industry.
There are billions of barrels of oil on the North Slope that will be left in the ground if we don’t make them economic to produce.
We need an oil tax structure that protects Alaska’s interests, but makes Alaska competitive over the long term.
The trans-Alaska pipeline is running three-quarters empty. We need a tax policy that fills it up again.
The governor laid out four guiding principles for any ACES reform. They should be ones all Alaskans can embrace: fair to Alaskans, encourage new production, simple and durable for the long term.
Since ACES was imposed in 2007, North Slope oil production has fallen by more than 200,000 barrels a day. Production continues to decline an average of 6-8 percent per year.
Since ACES was enacted, investment in new production has fallen off. Last year only $1 out of every $4 in one producer’s capital expenditures went toward enhancing production. The rest was spent on operations, maintenance and repairs.
- And only one out of every five of that producer’s North Slope staff is involved in finding new oil or building projects.
Posted: January 29, 2013