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Alaska is running out of time

OP-ED

MAKE ALASKA COMPETITIVE COALITION

Alaska is running out of time

The situation is frightening. North Slope oil production – which provides for 90 percent of state revenues – is plummeting because our tax system is repressive and discourages investment.

The trans-Alaska oil pipeline is operating at just more than a fourth of its capacity – and will soon reach a level where its very future is in jeopardy.

We need action NOW to keep the pipeline running for generations to come. We need to fix ACES (the state’s production tax) and make Alaska No. 1 again. Alaska has the resources, the infrastructure and the talent to safely produce oil for generations to come. What it lacks is a tax structure that is equitable for the state and the industry.

Just consider that in 2005, the State of Alaska forecast that the pipeline throughput would average 832,000 barrels per day (bpd) in 2010. Then came ACES in 2007 and production has since been in a steep decline.

Year Average
BPD (in thousands) Change
in production % Decrease
from previous year 2008 716 - 18 - 2.5% 2009 692 - 24 - 3.5% 2010 644 - 48 - 7.5% 2011 568
through Aug. 31 - 76 - 13.4%

The Make Alaska Competitive Coalition (MACC) came together to promote increased investment, production and jobs to secure Alaska’s economic future. We invite you to join us and be part of the solution. You or your company can become a supporter online at www.MakeAlaskaCompetitive.com.

Please contact your legislators by going to www.MakeAlaskaCompetitive.com/contact-your-legislator/ where you will find talking points and direct links to your legislators.

Together we can get Alaska moving again.

Thank you,

Jim Jansen and Marc Langland, Co-Chairs
Make Alaska Competitive Coalition

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