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ConocoPhillips reports $2.3B in earnings in Alaska

Published on NewsOK Modified: January 31, 2013 at 7:30 pm •  Published: January 31, 2013
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ConocoPhillips and the North Slope's other major players — BP and ExxonMobil Corp. — have said Alaska's current tax structure eats too deeply into profits when oil prices are high, discouraging new investment. They have called for a tax cut but have not yet testified on Parnell's latest plan. Industry is scheduled to testify before a special Senate committee next week.

Wielechowski said in a news release that ConocoPhillips reported profits of nearly $28 a barrel in Alaska, compared to less than $11 per barrel equivalent in the Lower 48, "and yet we hear time and time again that our tax rate is too high. That just doesn't make sense, even when you consider that they are producing more gas down south."

Lowman called that comparison inaccurate, saying 75 percent of the company's production in the Lower 48 is comprised of lower-value natural gas and natural gas liquids, while 96 percent of production in Alaska is high value crude oil.

Wielechowski has said he is open to tweaks to the current tax structure. He and other minority Senate Democrats are expected to propose their own plan aimed at increasing oil production.

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Follow Becky Bohrer on Twitter at http:/twitter.com/beckybohrerap.