Alaska faces unprecedented challenges at the State and Federal Level
Dear KEEP Supporter,
Alaskans voted firmly for fairness when they soundly defeated Ballot Measure 1 by a vote of 57.9% no to 42.1% yes last November.
Yet, adherence to KEEP’s mission “to promote and preserve competitive, fair and stable taxes on Alaska’s resource industries to enhance investment, jobs and production to secure Alaska’s long term economic future” has never been more important.
Alaska faces unprecedented challenges both in Alaska and in Washington, D.C. At home, we find ourselves at a critical juncture where Alaska must get its fiscal house in order or face an uncertain and grim future for our children and grandchildren. That means increasing production from our resource industries by keeping these industries competitive.
Alaskans know a healthy oil and gas industry and a sustainable fiscal plan are critical to our economic future. When the Anchorage Economic Development Corporation recently asked Anchorage businesses to rate the importance of various issues to the Anchorage economy, the sustainability of the State of Alaska operating budget and ending the spread of COVID-19 received the most “very important” ratings at 79%, followed by North Slope oil production (71%).
There are encouraging signs on the horizon. Oil prices have leveled at a point where the economics could allow several major projects (which could potentially add up to 300,000 barrels/day to the pipeline) to move forward. In spite of record low oil prices, the production decline was held at ~1% last year, primarily due to Hilcorp’s optimization efforts at Prudhoe Bay and Milne Point. That alone was an incredible accomplishment, particularly given the restrictions of Covid-19. But increasing production and bringing new oil to the pipeline requires huge capital investments. Excessive, unstable taxes, coupled with low oil prices, creates a very risky situation for investment.
KEEP Alaska Competitive will continue to advocate for stable, competitive tax policies that are fair to all industries and all Alaskans and do not single out any one industry, particularly oil and gas. We hope you will join us once again as we work together to secure a brighter future for Alaska.
Jim Jansen Joe Schierhorn