For Immediate Release: August 1st, 2014
Alaska Dishes Up Dazzling Profits for the Oil Industry As Alaska Sinks Deeper into Deficits
Profits are Far Greater in Alaska than in the Lower 48 for Less Oil Produced; ConocoPhillips Says Alaska Oil Production will Continue to Decline
ANCHORAGE – Yesterday ConocoPhillips announced $627 million in 2nd quarter profits from their Alaska operations or nearly $7 million per day from Alaska alone. On an hourly basis that equates to almost $300,000 in profits each and every hour.
At the same time, they announced Lower 48 profits of only $265 million from a greater volume of crude oil production – 191,000 barrels per day in the Lower 48 compared to 170,000 in Alaska.
“This proves beyond a shadow of a doubt that Alaska remains one of the most profitable places in the world,” said Senator Bill Wielechowski (D – Anchorage). “Oil profits in Alaska are more than double what they are in the Lower 48.”
Conoco’s Alaska profits per barrel rose from $29 in 2012 to $31 in 2013 to $34 so far in 2014. “While Alaskans face growing deficits and cuts to essential public services, the industry’s profits swell,” said Senator Bill Wielechowski. “In the Lower 48 and Latin America, they make about $6 per barrel of oil equivalent. In Canada, they make about $10.50 per barrel. In Alaska this year, they are making $34 per barrel.”
Wielechowski noted that Conoco’s Alaska profits rose even as their Alaska production fell. ConocoPhillips produced six thousand barrels per day more in the same quarter last year, but made $42 million more this 2nd quarter than last.
“They call it the More Alaska Production Act, but really it should be called the “Make Alaska Poor Act,” he said. Had Senate Bill 21 – been in effect for the past six years, Alaskans would have lost $8.5 billion, according to the Parnell Administration.
Despite television commercials ConocoPhillips and others have been running trying to convince Alaskans they plan to increase oil production in Alaska, ConocoPhillips recently told a group of investors it actually plans on continued decreasing production in Alaska. In that same presentation, ConocoPhillips touted plans for skyrocketing production in the Lower 48, Latin America, Canada and Europe. (See attached slide)
Meanwhile, as Alaska’s savings accounts are being rapidly depleted, Wielechowski noted that ConocoPhillips just this month announced a 6% increase in its quarterly dividend to shareholders. “It would appear that instead of reinvesting in Alaska to increase oil production, the windfall profits are simply going back to ConocoPhillips’ shareholders,” Senator Wielechowski lamented.
ConocoPhillips earnings report can be viewed here (see pages 12 and 19 of the 8-K report filed on July 31, 2014): http://www.conocophillips.com/investor-relations/company-reports/Pages/sec-filings.aspx
To view the report from the non-partisan Legislative Research Agency, click here: http://alaskasenatedems.com/docs/080114_research-brief.pdf
For more information, contact Senator Wielechowski at (907) 242-1558.