home

Regulatory and fiscal stability are key
to vibrant resource industry

It’s a new day on the North Slope despite the challenges that come with operating in the Arctic – high costs, harsh weather, supply chain issues, legal hurdles and struggles to find adequate financing.

For the first time in a long time North Slope production is projected to remain stable in the near term and increase in the late 2020s. This is excellent news for Alaska. Resource industries, particularly oil and gas, form the backbone of our economy. They are labor intensive, pay some of the best wages in the state and require continued capital investment to maintain or expand production levels. Production is key to jobs and revenue for Alaska.

We cannot control many of the challenges Arctic operations bring, but we can maintain stable tax policies that attract the capital needed to keep our resource industries healthy so they can produce jobs and revenues for Alaskans.

What’s at stake

$3.1B

State & Local Revenue

FY19

77,600

Alaskan Jobs Supported

Direct/Indirect

$549M

Grow the Permanent Fund

FY22 Dedicated Revenues to Corpus

$4.4B

Spending with Local Businesses

Annual

Source: “The Role of the Oil and Gas Industry in Alaska’s Economy,” January 2020, McKinley Research

Jim-Jansen Joe Shierhorn

Letter from the co-chairs

Dear KEEP Alaska Competitive Coalition Supporter,

Alaskans have good cause for celebration. The recently approved Willow project can reverse the last 10 years of population decline and outmigration, provide hundreds of jobs, dramatically increase  Alaska’s oil production, fund state services for the next 40 years, provide permanence to the PFD and the Permanent Fund and revitalize Alaska’s economy. At peak production, this major oil project on the North Slope will increase oil production in Alaska by up to 180,000 barrels per day.

Last fall, Santos sanctioned over $2.6 billion to start phase one of the Pikka project, which will produce up to 80,000 barrels per day, giving us another reason to celebrate. This, combined with the Willow project, could mean up to 50% more oil flowing through the pipeline.

READ MORE

What you can do

  • Follow us on social media for up-to-date information
  • Sign up for our newsletter
  • Participate in our grassroots effort by sharing KEEP’s updates with your family, friends, co-workers and acquaintances
Comments Box SVG iconsUsed for the like, share, comment, and reaction icons

There’s a new wave of optimism flowing across the North Slope thanks to a combination of new discoveries, new technologies and a “stable fiscal environment.”

“We’re seeing levels of activity that we haven’t seen for a decade or so, with more to come,” Mark Ireland, senior vice president for subsurface and exploration at Santos, told the Meet Alaska audience last week.

There is “a real wave of projects and development that really is bursting new life into the North Slope,” said Connor Dunn, a senior vice president with ConocoPhillips Alaska.

“While Willow has been big and public and required a lot of focus, there’s just as much activity across Kuparuk and Prudhoe and elsewhere on the Slope,” Dunn said. “So it’s a really exciting decade ahead for our industry.”

More here. bit.ly/3TvFXdH
... See MoreSee Less

There’s a new wave of optimism flowing across the North Slope thanks to a combination of new discoveries, new technologies and a “stable fiscal environment.”

“We’re seeing levels of activity that we haven’t seen for a decade or so, with more to come,” Mark Ireland, senior vice president for subsurface and exploration at Santos, told the Meet Alaska audience last week.

There is “a real wave of projects and development that really is bursting new life into the North Slope,” said Connor Dunn, a senior vice president with ConocoPhillips Alaska. 

“While Willow has been big and public and required a lot of focus, there’s just as much activity across Kuparuk and Prudhoe and elsewhere on the Slope,” Dunn said. “So it’s a really exciting decade ahead for our industry.”

More here. https://bit.ly/3TvFXdH

The spring revenue forecast is out – and the news is mostly good.

The state believes oil prices will average $84.08 per barrel for FY 2024 and $78.00 for FY 2025, stabilizing at $75.00 by FY 2034. The oil price forecast is based on futures market prices through FY 2031, followed by an assumption that prices will increase with inflation. That’s a $1.69 per barrel for fiscal year (FY) 2024 and $2.00 for FY 2025, respectively. The ANS oil production forecast has been decreased by 2,800 barrels per day for FY 2024 and increased by 13,100 for FY 2025.

Driven by the revised outlook of oil price and production, the Unrestricted General Fund (UGF) revenue forecast, before accounting for the operating transfer from the Permanent Fund Earnings Reserve, has increased by $58 million for FY 2024 and $140 million for FY 2025. The UGF revenue, before accounting for the operating transfer from the Permanent Fund Earnings Reserve, is forecasted to be $3.0 billion for FY 2024 and $2.8 billion for FY 2025.

The Permanent Fund is set to transfer $3.5 billion to the General Fund for FY 2024 and $3.7 billion for FY 2025. These amounts include funds that are available for general government spending and the payment of annual dividends to Alaska residents.

View the complete report: tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2024&Type=Spring
... See MoreSee Less

The spring revenue forecast is out – and the news is mostly good.

The state believes oil prices will average $84.08 per barrel for FY 2024 and $78.00 for FY 2025, stabilizing at $75.00 by FY 2034. The oil price forecast is based on futures market prices through FY 2031, followed by an assumption that prices will increase with inflation. That’s a $1.69 per barrel for fiscal year (FY) 2024 and $2.00 for FY 2025, respectively. The ANS oil production forecast has been decreased by 2,800 barrels per day for FY 2024 and increased by 13,100 for FY 2025.

Driven by the revised outlook of oil price and production, the Unrestricted General Fund (UGF) revenue forecast, before accounting for the operating transfer from the Permanent Fund Earnings Reserve, has increased by $58 million for FY 2024 and $140 million for FY 2025. The UGF revenue, before accounting for the operating transfer from the Permanent Fund Earnings Reserve, is forecasted to be $3.0 billion for FY 2024 and $2.8 billion for FY 2025.

The Permanent Fund is set to transfer $3.5 billion to the General Fund for FY 2024 and $3.7 billion for FY 2025. These amounts include funds that are available for general government spending and the payment of annual dividends to Alaska residents.

View the complete report: https://tax.alaska.gov/programs/programs/reports/RSB.aspx?Year=2024&Type=Spring

Hard to believe but this Friday is the 40th anniversary of Meet Alaska, Alaska's Premier Energy Conference & Trade Show sponsored by the Alaska Support Industry Alliance. Aside from updates from ConocoPhillips Alaska and Santos, innovation is the keyword of the day, including an Alaska Innovation panel with JR Wilcox, CEO, Alyeschem, North Slope Methane Project; Jenn Miller, CEO/Manager, Renewable IPP, Alaska’s Utility Scale Solar Farms; and Hunter Van Wyhe, Operations Engineer, Furie, Drones in Cook Inlet. That’s followed by an Industry Innovation discussion featuring Scott Gale, Executive Director, Halliburton Labs, and Liam Zsolt, Director of Innovation, ASRC Energy Services.

The day closes with Jon Bitner’s “AI Impacts on Your Business.” Bitner runs the Alaska Small Business Development Center.

To find out more about the conference, click here. www.alaskaalliance.com/meet-alaska-24
... See MoreSee Less

Hard to believe but this Friday is the 40th anniversary of Meet Alaska, Alaskas Premier Energy Conference & Trade Show sponsored by the Alaska Support Industry Alliance. Aside from updates from ConocoPhillips Alaska and Santos, innovation is the keyword of the day, including an Alaska Innovation panel with JR Wilcox, CEO, Alyeschem, North Slope Methane Project; Jenn Miller, CEO/Manager, Renewable IPP, Alaska’s Utility Scale Solar Farms; and Hunter Van Wyhe, Operations Engineer, Furie, Drones in Cook Inlet. That’s followed by an Industry Innovation discussion featuring Scott Gale, Executive Director, Halliburton Labs, and Liam Zsolt, Director of Innovation, ASRC Energy Services.
 
The day closes with Jon Bitner’s “AI Impacts on Your Business.” Bitner runs the Alaska Small Business Development Center.
 
To find out more about the conference, click here. https://www.alaskaalliance.com/meet-alaska-24
Load more

The mission of KEEP Alaska Competitive is 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.