SLIDE 1
Alaskas Future: Its Under Our Feet Juneau Chamber of Commerce - - PowerPoint PPT Presentation
Alaskas Future: Its Under Our Feet Juneau Chamber of Commerce - - PowerPoint PPT Presentation
Alaskas Future: Its Under Our Feet Juneau Chamber of Commerce February 9, 2012 Kara Moriarty, Executive Director AOGA Member Companies Oil & Gas Has been Good to Alaska Jobs & Revenue State of Alaska has collected over
SLIDE 2
SLIDE 3
- State of Alaska has collected over $160 billion
from oil & gas since 1959
– 98% of all state revenues have been from natural resources – Oil & gas continue to dominate state’s unrestricted revenue, accounting for 92% ($7 billion) in FY 2011.
TOTAL Revenue to Alaska – Including Restricted Revenue: Production Taxes: $4.5 billion Royalties & Bonuses (including to Perm Fund): $2.9 billion Property Taxes: $586 million Corporate Income Taxes: $542 million
– State estimates 90% of its revenue will continue to come from oil and gas – even with falling production
Oil & Gas Has been Good to Alaska – Jobs & Revenue
SLIDE 4
SLIDE 5
Jobs for Alaskans- One-Third Tied to Oil & Gas
122,000 34%
SLIDE 6
Rich In Resources
SLIDE 7
Production Decline Is Real Serious Consequences
SLIDE 8
“Your state has about the worst energy tax policy in the world. The only worse I could find is North Korea.”
- Economist Steve Forbes
at the Anchorage Economic Development Corporation’s economic forecast luncheon on January 25, 2012.
Alaska’s Tax Structure: How Bad is it?
SLIDE 9
The Worst Tax Rates in North America
Oil Tax Rates
- Alaska: 76%
- Alberta: 55%
- Gulf of Mexico: 43%
Source: Roger Marks, Alaska Legislative Oil Tax Analyst
Other oil producing areas are booming!
- North Dakota
- Texas
- Alberta
SLIDE 10
The Worst Tax Rates in North America
30% 40% 50% 60% 70% 80% 90% Effective Tax Rate
Effective Tax Rate at $115/bbl Market Price (all taxes & royalties)
Source: Roger Marks, 2/8/12 Presentation
SLIDE 11
The Worst Tax Rates in North America
50% 55% 60% 65% 70% 75% 80% $50 $60 $70 $80 $90 $100 $110 $120 $130 $140 $150 Effective Tax Rate ANS Market Price ($/bbl)
Effective Tax Rate (all taxes & royalties) (tax / net value)
Source: Roger Marks, 2/8/12 Presentation
SLIDE 12
Fields Discovery Sanction First Oil Nikaitchuq 2004 2008 2011 Oooguruk 2003 2006 2008 Liberty 1997 2008 2012 Alpine West (CD 5) 2001 ??? ??? Fiord 1999 2004 2006 Nanuq 2001 2004 2006
Development Takes Time
SLIDE 13
Development Takes Time
SLIDE 14
A Grim Future Without Oil & Gas
Declining production + oil market crash= a complete disaster for Alaska
- Draconian cuts to state services
- No tax base to tap into
- Rural areas devastated
- Spend the Permanent Fund
- Alaska applies to the federal government to
return to territorial status
Source: ISER’s Scott Goldsmith “Four Scenarios for Alaska’s Future”
SLIDE 15
A Grim Future Without Oil & Gas
Sources of FY 2011 Unrestricted Revenue Oil and Gas Royalties & Taxes ($7B) 92% Excise Taxes ($165M) 2% Corporate Income Taxes ($157M) 2% Mining Taxes ($49M) .6% Licenses & Permits ($43M) .6% Fisheries Taxes ($23M) .2%
Source: Alaska Department of Revenue – Fall 2011 Sources Book
SLIDE 16
What needs to happen?
Alaska’s Oil Tax Structure Must Change
- Real, meaningful changes are needed to
jumpstart production
- Legislation that does not provide for these
changes will not earn industry support
- Spirit of cooperation must rule the day
SLIDE 17
Reforming Oil Taxes is Governor Parnell’s #1 Economic Priority Do you stand with the Governor?
- Contact your legislator
- Write a letter to the editor
- Talk to your friends and neighbors
- Follow AOGA on facebook and twitter
SLIDE 18