State House Resources Committee hears from Oil and Gas Producers

 

FAIRBANKS, Ak - State House Resource Committee members continue to hear testimony from oil industry leaders in regard to proposed oil tax cut legislation.

Late last week, the State Senate narrowly passed SB 21, legislation that restructures how the state taxes oil producers.

In essence, the legislation lowers the tax rates as a means to incentivize oil companies to increase production and also helps make Alaska more competitive on a global scale.

ConocoPhillips Alaska V.P. for External Affairs, Scott Jepson, says the proposed changes are good, but don't go far enough.

Jepsen says they would like to see even further reductions in the base tax rate and a modification of the Gross Revenue Exclusion, or GRE.

He says investments would be limited if the bill passes as is.

"If the current bill passes, we will push for some additional investments," said Jepsen.  "But it may not be as much investments as we think we could potentially fund in these fields if we had a more robust tax frame work."