Ballot Measure 1 Threatens Alaska’s Energy Future
Ballot Measure 1 will appear on Alaska’s general election statewide ballot in November. It seeks to substantially increase oil production taxes on the Prudhoe Bay, Kuparuk River and Colville River Units. ConocoPhillips has a working interest in all three of these fields, which represent over 80% of Alaska’s North Slope oil production.
If passed, Ballot Measure 1 will increase the production tax by 150% at low prices like we see today, and at higher prices it will raise the tax by more than 300%. At the high end, the tax is structured to increase taxes on the three targeted fields by over $1 billion per year. Increases this high will inevitably force reductions in the capital investments that companies make in our state. No matter what you think about changing oil taxes, Ballot Measure 1 goes too far.
ConocoPhillips in Alaska
ConocoPhillips has been a vital contributor to Alaska’s economy for more than 50 years, and we want to be around for decades to come. As the state’s largest oil producer, we’ve demonstrated an ongoing commitment to responsibly developing Alaska’s resources while providing employment to thousands, paying billions of dollars in taxes and royalties and making billions of dollars in investments.
Unfortunately, the coronavirus pandemic and low oil prices have forced the entire industry to retrench and reduce its investments everywhere. In Alaska, drilling has been shut down in Kuparuk, Alpine and Prudhoe Bay. If Ballot Measure 1 passes, it will put a brake on resuming North Slope activity. Defeating the initiative and maintaining Alaska’s positive investment climate provides the opportunity for the industry to get back on its feet. The projects planned over the next 10 years could attract billions of dollars in investment capital and potentially generate thousands of jobs, hundreds of thousands of barrels per day of new production, and significant new revenue for Alaska. Much of this is at risk if the oil tax increases in Ballot Measure 1 pass. Without a doubt, if Ballot Measure 1 wins, Alaska loses.
For more information, get the facts here.
In the News:
OPINION: A fair share of deception (Alaska Journal of Commerce)
OPINION: A terrible time to increase oil production taxes (Anchorage Daily News (ADN))
Alaska court opinion sides with proponents of oil tax ballot measure in dispute with state (ADN)
OPINION: Taking stock of oil taxes (ADN)
OPINION: Economic recovery hopes rely on voters rejecting oil tax change (ADN)