For Immediate Release: August 4th, 2014
Massive Tax Concessions Fail to Stem Decline
Proponents of SB 21 Say Drop is Stopped, Decline is Arrested: Facts Say Otherwise
ANCHORAGE –Alaska’s own Department of Revenue ANS production reports show that despite promises of increased production and a goal of one million barrels spurred by billion dollar tax concessions in SB 21, throughput in the Trans-Alaska pipeline continues to decline.
“I decided to fact-check the claims that the so-called More Alaska Production Act has ‘stopped the drop’ in production decline. It turns out that reality does not match up with their rhetoric. By every objective measure, Alaska North Slope production levels continue to drop,” stated Senator Hollis French (D-Anchorage).
Year-to-year (August 1, 2012 – July 31, 2013 vs. August 1, 2013 – July 31, 2014), year-to-date (Jan. 1 – July 31, 2013 vs. Jan. 1 – July 31, 2014), and month-to-month (July 2013 vs. July 2014) comparisons all show drops in production. A year-to-year 2013-2014 comparison shows a 2.5% production decline. A year-to-date 2013-2014 comparison shows a 3.5% production decline. The July 2013 to July 2014 month-to-month comparison show an astounding 18% decline equivalent to 75,000 less barrels of oil through the Trans-Alaska pipeline.
“What the data confirms is we have reached the worst of both worlds: declining production combined with less resources to maintain our roads, educate our children, and keep our communities safe. All this while the industry takes a bigger share of our oil. There is no new production, just continued decline,” stated Senator French. “Alaskans need to know that the claims of more oil are false,” French concluded.
For more information contact Senator French at (907) 244-7135.