Big Oil poised to win fight over Alaska taxes


In a victory for Big Oil, an Alaska ballot measure to repeal a 2013 law that drastically cut the amount of taxes major oil companies in the state had to pay appears headed for defeat.

A measure on Alaska’s primary ballot yesterday would have reinstated the state’s progressive oil taxes, originally installed in 2007 and dismantled last year in an effort to lure oil companies to the state.

ConocoPhillips (NYSE:COP) and BP, the two biggest oil producers in the state, called it a victory; COP, which has said it plans to spend $2B to drill more wells in Alaska's Alpine and the Kuparuk fields, says the new tax plan has improved the investment climate in the state.

BP has said the new tax code enables it to invest $1B into Prudhoe Bay, the field that has produced 12B barrels of oil over several decades and could pump 12B more before it is completely spent.

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Comments (7)
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    i think the first part of this is written incorrectly otherwise how is a tax break getting repealed good??
    20 Aug 2014, 07:32 PM Reply Like
  • Bluelight413
    , contributor
    Comments (109) | Send Message
     
    Yeah, confusing. I live in AK and a lot of voters were confused as well. The referendum designed to repeal the tax break was defeated.
    20 Aug 2014, 08:06 PM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
     
    ahh i see... seems like there is a better way to write it but i see now
    20 Aug 2014, 08:11 PM Reply Like
  • Tueffelhund85
    , contributor
    Comments (188) | Send Message
     
    Companies use tax breaks all the time and are demonized for political purposes by Obumbles and the commie DNC. I thought you opposed tax breaks for millionaires and billionaires? Did you forget that pay your fair share lie? LOL
    20 Aug 2014, 07:58 PM Reply Like
  • curious-george
    , contributor
    Comments (599) | Send Message
     
    people pay all taxes; companies pass the tax to us by charging a higher price for the product, OR they stop producing SO we can no longer get that product...think of the tobacco companies, and the price of tobacco...the buyer pays the price and the company passes all the costs and taxes to you...if can show how to avoid this, please let us know...all the very best
    20 Aug 2014, 10:06 PM Reply Like
  • fhbecker
    , contributor
    Comments (270) | Send Message
     
    I always find it amazing that keeping earned money is called a tax break.
    21 Aug 2014, 07:47 AM Reply Like
  • oldokie
    , contributor
    Comments (572) | Send Message
     
    If companies cannot make money they will go where they can. Alaskans need to see if they want investment, jobs, and bigger residents income tax check or not. I am not saying good/bad but it is the facts of life. If you have a job, see how long you keep showing up if they stop paying you.
    21 Aug 2014, 02:05 PM Reply Like
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