Alaska oil output tax proposal puts state’s future production at risk: Fuel for Thought

Alaskans will vote in November on a ballot proposition that would hike taxes on large oil producing fields, more than doubling the state production tax and threatening future crude output in the state. The initiative would extract more than $1 billion a year from North Slope producers, state officials estimate, and includes a provision that make companies’ confidential financial information filed with tax returns public. On that point, “we are not aware of any other oil and gas regime requiring the public release of all supporting and backup data associated with taxes paid,” Rich Ruggiero, of IN3nergy, a consultant to the state Legislature, said in an analysis of the ballot measure. Critics in industry say the measure would crush a renaissance of industry activity seen on the North Slope following a string of recent oil discoveries. ConocoPhillips, which led much of the new exploration, has curtailed drilling and laid down rigs on the slope. If the ballot measure passes, a drilling suspension will continue, at least through next year, at four large fields targeted for higher taxes, the company told a business group in Anchorage. Go deeper: Explore S&P Global Platts US election 2020 coverage An ongoing issue Alaskans have… continue reading

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