The Energy Task Force 2010 Annual Report indiciated the deliverability of natural gas from Cook Inlet may affect the health, safety and ecomonic welfare of Alaska.
Friday, January 28, 2011
Tuesday, January 25, 2011
Steve Pratt, Alaska Economic Energy Dude
On January 18 the Alaska Department of Revenue released its Oil and Gas Production Tax status report to the legislature. This report has been required by statute at the start of each legislative session since 2006.
Department of Revenue (DOR) notes in its report that state revenue under Petroleum Profits Tax (PPT) and Alaska Clear and Equitable Share (ACES) significantly exceeded the revenue that would have been collected under the old ELF tax regime. Exploration was increasing until dropping off in 2010. While development continues in three relatively new North Slope projects, production continues to decline. Industry employment dipped slightly in 2010, the first year since 2006 that saw an overall decrease.
PPT and ACES are taxes on net profits. Determining profitability is tedious and complicated and requires the processing of large amounts of data. The Department states that its compliance efforts have been hampered by an inability to house and manage large amounts of data that is pouring in. Further complicating its efforts are the submission of data in Adobe Acrobat format, causing DOR employees to manually cut and paste data into usable and error-prone spreadsheets.
Dudes and Divas would like to see DOR take special heed of Alaska’s global competitiveness this session. Governor Parnell’s tax proposal is a great start on moving forward. Review of Alaska’s oil and gas tax structure should be high on DOR’s priority list. To free up resources to keep on this high value task, we think DOR should consider asking or requiring those submitting data to submit the data in spreadsheet format.
Extracting the next phase of North Slope hydrocarbons, including heavy oil, will require significant long-term capital commitments from exploration and development companies. DOR notes that the state needs to be prepared to modify its tax regime “as the need arises”. It is likely the need has already arisen.
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Tuesday, January 18, 2011
When: January 21, 2011
Where: Sheraton Anchorage
10. A well-oiled & “Alaskanized” version of JEOPARDY-like you’ve never seen it before, and like you’ll never see it again!
9. Keynote addresses by executives from all 3 of Alaska’s oil and gas producers. Mark Finley, BP America, Greg Garland, Conoco Phillips, Randy Broiles, ExxonMobil Production Company
8. North Dakota is projected to surpass Alaska as a major oil producer in the next 10 years….find out why! Terry Kovacevich, North Dakota Petroleum Council.
7. Alaska’ premier oil & gas trade show, featuring informative exhibits by some of the Alaskan industry’s leading contractors & suppliers.
6. Global views of Alaska’s oil & gas competitiveness from 2 of the world’s top research firms. Ed Kelly, Wood Mackenzie and Fred McMahon, The Fraser Institute
5. Find out the implications of federal ocean policy and hear from the man responsible for all arctic development for Alaska’s most aggressive offshore investor. Robert Blaauw, Shell, Jack Belcher, National Ocean Policy Coalition
4. Entertainment by Crow Creed Pipes & Drums
3. Declarations of Independents…an overiew of challenges & opportunities facing prospective investors from Cook Inlet’s largest leaseholder & the North Slope’s first independent operator. JR Wilcox, Cook Inlet Energy, Jay Still, Pioneer Natural Resources
2. Hundreds of business associates from Alaska’s oil & gas industry and dozens of prospective customerse will be there.
1. Your competitors will be there.
To register or for more infomration: