Alaska’s North Slope is experiencing a boom in oil production, with major investments being made by industry producers in maximizing recovery from fields like Prudhoe Bay and developing new fields. The stability of Alaska’s oil and gas taxation system over the past 12 years has been a key factor in attracting these investments, providing predictability for producers facing other risks in the industry.
The proposed SB 112, which aims to raise production tax, is seen as a threat to this stability and competitiveness. Alaskans have consistently rejected oil tax increases at the ballot box, recognizing the importance of fair and competitive taxes in attracting investment. The current tax regime has been the result of careful analysis and is working effectively.
Rejecting SB 112 is crucial to maintaining the momentum of oil production in Alaska, bringing new revenue to the state and ensuring the viability of the Trans Alaska pipeline. The Keep Alaska Competitive Coalition, comprising a diverse group of stakeholders, is urging the rejection of SB 112 to prevent economic losses and reduction in oil production in the state.
Joe Schierhorn and Jim Jansen, co-chairs of the Coalition, emphasize the importance of a vibrant oil industry to Alaska’s economic future and urge policymakers to consider the potential negative impacts of raising production tax. The rejection of SB 112 is crucial to sustaining the positive trajectory of Alaska’s oil production industry.
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