Last week, ConocoPhillips and BP leaders adopted investment climate/tax reform positions supporting passage of HB 110 in the Alaska legislature. Our friend, Bill Brackin of ExxonMobil provides a copy of the position paper below, signed by EM Production Company President Rich Kruger (NGP Photo):
UNITE FOR A BRIGHT ALASKAN FUTURE
Alaska remains full of opportunity and promise. From the very first
Native Alaskans to all the citizens who live and work in the state
today, Alaska’s challenges have been met by those willing to look beyond
the horizon. (more)
Despite challenging environmental conditions, Alaska has achieved a
remarkable and enviable position in the world by responsibly developing
its natural resources – hard work that has fueled an engine of progress
for the state and its people. Today, Alaska’s oil and gas production
accounts for more than 34,000 jobs across the state and nearly 90
percent of its general revenue.
Unfortunately, the engine is not firing on all cylinders.
Since 2007, Alaska’s Clear and Equitable Share (ACES) tax regime has
failed to be either clear or equitable. Under ACES, nearly every
measure of progress has declined, including investments and production.
And as oil volumes flowing through the TransAlaska Pipeline (TAPS)
continue to decline, the engine of progress is in very real danger of
stalling.
Governor Parnell has recognized the detrimental effect of ACES on
Alaska’s future and is leading real changes to improve the state’s
competitiveness. His proposals offer an important step in the right
direction toward a brighter economic future for Alaska. It is our firm
belief that passage of the Governor’s proposed changes to ACES, in its
current form, will support additional investments in Alaska that will
lead to greater development and production.
Over the past several weeks there has been much discussion regarding
Governor Parnell’s ideas for ACES reform. Most of the talk has focused
on winners and losers in the near-term. In fact, the Governor is
looking beyond the horizon to long-term solutions in which everyone
wins.
ExxonMobil is committed to Alaska’s future. We have worked here for
more than 90 years, investing more than $12 billion to date and
providing jobs for Alaskans. Currently, we are working with the state
to bring the Point Thomson Project on line to produce additional oil and
gas volumes in the near term. Going forward, we have joined with
TransCanada to help bring a new gas pipeline to Alaska. Progressing
these multi-billion dollar projects underscores ExxonMobil’s continued
commitment to Alaska.
Governor Parnell’s proposal provides a foundation to build on the
opportunity and promise of the state’s vast natural resources and the
indomitable spirit of its people.
Whether you are a proponent or critic of ACES reform, we all seek the
same goal – a strong and prosperous Alaska. We encourage all state
legislators to work together to provide industry with an investment
environment that will help secure a promising future for the people of
Alaska.
Rich Kruger, President
ExxonMobil Production Company
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