JUNEAU – Senator Bill Wielechowski (D – Anchorage) congratulated ConocoPhillips today on another blockbuster quarter of profits in Alaska.
“It’s gratifying to see Alaska’s major oil producers reaping substantial profits under our existing oil tax structure at the same time as Alaskans enjoy their fair share of oil revenue,” said Senator Wielechowski. “It demonstrates that our tax system is fair to everyone – the companies that produce our oil as well as Alaskans, who own the oil.”
A report filed with the Securities and Exchange Commission shows that ConocoPhillips earned $595 million in Alaska during the last three months of 2012 alone. For the entire year, their earnings exceeded $2.3 billion.
“That’s $6.3 million in profits each and every day of the year,” Senator Wielechowski said. “Put another way, this one oil company earned $262,500 an hour in Alaska last year, which is staggering.”
In contrast, their earnings in the Lower 48 and Latin America combined were only $157 million for the 4th quarter or $713 million for the year, a fraction of what they earned in Alaska.
In addition, a report released today from the non-partisan Legislative Research Services shows ConocoPhillips earnings per barrel of oil equivalent were almost three times more in Alaska than in the Lower 48.
“ConocoPhillips reported profits of nearly $28 a barrel here in Alaska,” said Senator Wielechowski. “In the Lower 48, they make less than $11 per barrel equivalent, and yet we hear time and time again that our tax rate is too high. That just doesn’t make sense, even when you consider that they are producing more gas down south.”
Despite ConocoPhillips’ stunning earnings, Senator Wielechowski noted that some small amendments or “tweaks” to the state’s oil tax structure could be beneficial to all parties.
“When oil prices slide below $60/barrel, Alaskans receive almost no production tax revenue,” Senator Wielechowski said. “Likewise when prices skyrocket, the companies share diminishes too much.”
Wielechowski said he and other Democrats would be rolling out legislation to address these shortcomings and stimulate increased oil production.
View the legislative research report here: http://alaskasenatedems.com/docs/013013_Research_Brief.pdf
For more information, contact Senator Wielechowski at (907) 465-6881 or 242-1558.