Governor Sean Parnell is continuing to advocate for changes to the state’s current oil tax policy as one way to increase North Slope production. Parnell said that in the next year alone, Alaskans are on the hook for nearly $1 billion in tax credit payments to oil companies, no matter the price of oil.
Gov. Parnell: “Making matters worse, the current regime hurts Alaskans by leaving billions of barrels of oil stranded in the ground. Less production means less opportunity for Alaskans and puts pressure on the State’s ability to provide the services Alaskans depend on. Our bill, Senate Bill 21, cuts the state’s risk of decline and encourages both exploration and production. Because both are important. We maintain targeted incentives for exploration in Alaska. But by simplifying and restoring balance to the tax system, those incentives pay off for companies when new oil gets produced.”
Parnell said that the intense, transparent scrutiny of proposed tax changes throughout the first half of the 90-day session ensures that all Alaskans will benefit and have a future with new production, not status quo decline.