Unsatisfied By Record Profits, Oil Giants Demand $2 Billion Tax Cut To Drill In Alaska

As Alaska’s North Slope oil fields get tapped out, oil companies are demanding a tax cut of more than $2 billion a year. Last week, executives from BP and Conoco Phillips told the state senate that their companies would only increase investment in drilling if state taxes on their companies are gutted. They supported the language of House Bill 110, which would cut over $2 billion a year in oil company taxes as oil prices soar:

BP Exploration (Alaska) Inc. and Conoco Phillips Alaska told the Senate Resources Committee there are projects the companies could do on Alaska’s North Slope to increase oil production, but those projects will have trouble attracting capital investment because of high state taxes. . . . Conoco Phillips spokeswoman Natalie Lowman said the company “has committed to spending $5 billion in the next 3 to 5 years jointly with our co-venturers if there is a tax change similar to what HB 110 proposed.”

BP and Conoco Phillips testified against SB 192, which would only cut oil company taxes by $200 million a year.

Gov. Sean Parnell (R-AK), formerly the director of government relations for ConocoPhillips, supports House Bill 110.