ConocoPhillips Reports Another Blockbuster Quarter in Alaska
ANCHORAGE-ConocoPhillips Alaska has announced earnings of $551 million in Alaska during the second quarter of this year, according to a report the company filed this week with the U.S. Securities and Exchange Commission. That’s over five times as much as the company’s reported profits in the entire Lower 48 of $104 million for the second quarter.
“Under our current tax structure, ConocoPhillips is making huge profits from Alaska’s oil.” said Senator Bill Wielechowski. “While this is great news for ConocoPhillips and Alaskans, it calls into question the need for major tax rollbacks.”
According to the report filed by ConocoPhillips, the effective tax rate in Alaska is 35.7% - that’s less than the average effective income tax rate ConocoPhillips paid in the Lower 48 and Latin America (42.6%) and Europe (64.7%).
“This is further proof that our current oil tax structure, ACES, is working. It also confirms what we’ve been saying all along- Alaska is one of the most profitable places in the world for the oil and gas industry,” said Senator Wielechowski.
According to Legislative Research, which is non-partisan, ConocoPhillips’ net income per barrel of oil equivalent for the second quarter was $28.16 in Alaska, compared to $2.97 in the Lower 48 (including Latin America). At the same time, the ConocoPhillips earnings report also shows that more than 35-percent of Conoco's worldwide oil and gas production profits come from Alaska, while under 14-percent of its overall production actually occurs in this state.
“This earnings report is another reason Alaskans should continue to fight for our fair share,” said Senator Wielechowski. “It’s right here in black and white. Oil companies are making very strong profits in Alaska. We have jobs at an all-time high under ACES. And finally, we have many more companies doing business in the state of Alaska. ACES is truly a win-win situation for everyone involved.”
To see the Legislative Research report, click here.
For more information, call Senator Wielechowski at 242-1558 or Michelle Sydeman at 321-1944.
Posted: July 25, 2012