It’s working so let’s leave it alone.
After four years of low oil prices and recession, industry job losses are stabilizing, activity on the North Slope is picking up again, the price of oil is above $65 per barrel, and the oil production decline at Prudhoe Bay has been significantly reduced.
Alaskans and oil and gas companies are becoming increasingly optimistic about the future of Alaska’s most important industry.
Investment Requires Stability
Dear KEEP Supporter,
The KEEP Alaska Competitive Coalition, five thousand members strong, is a broad-based group of Native corporations, businesses, unions and individual Alaskans who share one common objective: We care deeply about our state and its economic future.
Competitive tax policies are the key to creating investment and jobs for Alaskans. We recognize we must address our fiscal crisis, and make meaningful progress toward fixing it, so that our resource industries can survive and prosper.
Petroleum’s share of the Unrestricted Revenue has averaged over 80% since Prudhoe Bay began production. Oil has funded and continues to fund our schools, roads, airports and public safety. Oil strongly supports our charities and has created about one-third of Alaska’s jobs.
Oil is the largest cash contributor to Alaska’s $60 billion permanent fund every year and has allowed Alaskans the luxury of not having to pay state income or sales taxes.
But times have changed. It’s been a great ride, but it’s not sustainable.
Alaska is just emerging from a recession caused by low oil prices and an unsustainable fiscal situation that discouraged investment. We currently face a choice between the level of government services, the level of the Permanent Fund Dividend and new tax revenues. Some in Juneau have suggested increased taxes on the oil industry.
The Petroleum Industry has invested heavily in recent years which has reversed the production decline since the passage of SB-21 (and its competitive tax structure), and has plans to dramatically increase production. To raise taxes now would discourage these investments and put Alaska back into production decline.
Alaska’s current oil tax system is working – after three years of low oil prices and recession, industry jobs are increasing, activity on the North Slope is picking up again, and the oil production decline at Prudhoe Bay has been stopped for a third year in a row.
KEEP strongly recommends that we stop threatening the oil industry with increased taxes and unstable tax policies and encourage them to invest the tens of billions of dollars needed to turn the new discoveries into oil through the pipeline.
This is where KEEP members can make a difference. Please remind your representatives in Juneau and your fellow Alaskans not to kill OUR resource industry with tax increases ON the industry that is the economic foundation of OUR state.
Once again, thank you for your support of the KEEP Alaska Competitive Coalition. We look forward to working with you to ensure Alaska will be open for business for years to come.
Keep Alaska Competitive
Keep Alaska Competitive
KEEP Alaska Competitive is a 501(c)(6) organization composed of individual Alaskans, Alaska Native organizations, businesses and labor groups who care deeply about our long-term economic future. We do not take contributions from oil producers.
Stable Tax Policies and a Balanced Fiscal Plan are the Foundation for a Strong Alaska
Alaska is finally emerging from a recession caused by low oil prices and declining production.
- Alaska has an approximately $1.6 billion deficit
- Reserve accounts are almost empty
We have the ability to fix our fiscal problems.
- Don’t destroy our resource industries with increased taxes and unstable tax policies
- Continue cutting cost of government
- Restructure the Permanent Fund
- Add new revenues, if necessary