Alaska is the Most Profitable Region for ConocoPhillips In the World "by a Wide Margin" According to Legislative Research Division
May 07, 2018
The findings of the research report reviewing the profit data by ConocoPhillips were released Saturday by Senator Bill Wielechowski (D-Anchorage).
"Our tax system is flawed. We all want the oil companies to succeed financially - and they are - but Alaska can simply no longer afford to offer the most generous oil tax credits in the world," said Senator Bill Wielechowski (D-Anchorage). "It's fundamentally unfair to take thousands of dollars in Permanent Fund Dividend checks from Alaska families every year to give to the oil industry in the form of enormous tax breaks."
According to the Alaska Department of Revenue Spring 2018 Revenue Forecast, in 2018 Alaska is projected to collect $3.90 per barrel in production taxes and allow $1.2 billion in deductible oil tax credits to major oil producers. Governor Bill Walker and the Republican Senate Majority have opposed changes to the state's oil tax system, instead seeking to deplete the Permanent Fund Earnings Reserve and cut PFDs to balance our budget.
"While we praise the oil industry for succeeding, we also have to consider Alaska is still struggling in a recession," said Senator Tom Begich (D-Anchorage). "Alaska is a place we all love and benefit from, and in light of these substantial profits, I look forward to suggestions and solutions that will effectively contribute to the broader economic recovery Alaska truly needs."
"As this state continues to deflect billions of dollars in oil revenues in the form of per barrel credits, the burden to balance the budget and provide necessary services is solely, and erroneously, forced upon working Alaskans," said Senate Democratic Leader Berta Gardner (D-Anchorage). "This is not about one company making significant profits. It's about providing a balance to fixing our economic situation, and it takes all of us to achieve that."
Quoting an Alaska Senate Democrats' news release, "Though more difficult to review their data, it's expected that the other two major Alaska oil producers, BP Exploration and ExxonMobil, experience similar profitability in the state".
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Editing by Mary Kauffman, SitNews
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