Governor Sean Parnell today released his weekly Oil Tax Message, discussing expert analysis of Alaska’s oil tax structure.
Gov. Parnell: “Those experts showed in public hearings that Alaska is missing out on record levels of capital investment in our oil fields, while North American oil investment is nearing record highs. The experts’ testimony also revealed that the growth of capital investment in Alaska has flat-lined across the last few years.
In an industry where new production follows new investment, that’s especially troubling. The experts told legislators that Alaska is no longer competitive in the global market. Not because we lack oil; but because our tax system is far too complicated and discourages investment. They warned that our tax system taxes too much when oil prices are high and exposes Alaska to credit obligations when prices are low.”
The Governor insisted his new oil tax regime would be simpler and would include incentives geared towards actual new production.