Full Title: Alaska’s Oil Investment Tax Structure Establishing a Competitive Alaska
Author(s): Joe Beedle and Cheryl Frasca
Publisher(s): Commonwealth North
Publication Date: 3/2011
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Alaska needs to have policies in place that result in increased oil production and offer competitive advantages that attract investment in oil production. Alaska must restrain the current momentum of decline in oil production by creating a more attractive and competitive environment for expanding investment and reinvestment by the oil industry. It is the responsibility of Alaskans to ensure the State establishes a fiscal and tax structure that does not inhibit growth. Commonwealth North has conducted this study to determine if and to what extent investment in Alaska’s oil resources is supported and encouraged under the current oil tax structure. What action should be taken to establish tax policy, amend law, and reform regulations that incentivize investment and increase the competitiveness of Alaska relative to other oil basins? Commonwealth North determined that a tax adjustment is required for oil explorers and producers to increase investment and stem or stop the decline in oil production and preserve long term revenue for the State. The current oil production tax adversely affects investment for increased production on the North Slope and progressivity should be modified to restore the incentive to make new investments.