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Home » Press » NEWS: Conoco Earnings Report: Decreased Production, Massive Profits in Alaska

NEWS: Conoco Earnings Report: Decreased Production, Massive Profits in Alaska

While Alaska is Most Profitable Place in World to Do Business, State Pays Out $100 Million More in Credits Than We Receive in Production Taxes 

FOR IMMEDIATE RELEASE:
January 29th, 2015

JUNEAU – ConocoPhillips recent quarterly profits report details significantly declining Alaska production for 2014, the first full year under Senate Bill 21.  ConocoPhillips’ Alaska oil production dropped year-over-year 8.5%, from 200,000 barrels of oil per day to 183,000.  By contrast, ConocoPhillips’ Alaska profits were over $2 billion for 2014.

http://www.conocophillips.com/newsroom/Documents/4Q14_Earnings_Release-FINAL-012915.pdf

An analysis by the nonpartisan Legislative Research Services Division found that despite decreased production in 2014, Alaska remained ConocoPhillips’ most profitable reported jurisdiction in the world, with net income PBOE (per barrel of oil equivalent) of $30.56 in 2014.  This compares with a loss of $0.11 in the lower 48 in 2014 and a total global profit average of $12.06 PBOE. 

“It appears that despite industry claims to the contrary, we have not “stopped the drop” in production,” said Senator Bill Wielechowski (D-Anchorage).

The non-partisan Legislative Research Services found that ConocoPhillips generated unadjusted losses of $39 million on global operations in the 4th quarter.  However, Alaska remained a bright spot, producing an unadjusted profit of $343 million. In spite of this, Alaska will pay out $100 million more in production credits than we receive in production taxes. 

http://alaskasenatedems.com/docs/012915_CP-research-brief.pdf

“Decreasing production and the plummeting price of oil have Alaska staring at $3.5 billion deficit.  We remain one of the most profitable places to do business in the world. Alaska deserves a fair share for our resources,” stated Senator Wielechowski.

For more information, contact Senator Wielechowski at (907) 465-2435.

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