Under SB21, existing law provides unnecessary and massive tax breaks to our largest and most profitable legacy fields. Alaskans are sacrificing their fair share of production revenues from these legacy fields for no reason at all. Alaskans need to be diligent not to simply give away our share of oil revenues.
While Alaskans have been sacrificing their fair share, the producers have been reducing investment and jobs in these legacy fields, increasing their shareholder dividends, reducing their debt, buying back their own stock, and investing in oil projects outside of Alaska. Massive tax breaks for these legacy fields are simply giving away our oil for no benefit to anyone but the producers.
Prudhoe Bay is a good example. Since SB21, the producers have reduced capital investment and cut jobs to reduce operating expenses. The real effect of SB21 was to give away Alaskans’ fair share while the producers in Prudhoe Bay were increasing their profit margins by reducing investment and Alaskan jobs.
The Fair Share Act reduces the massive and unnecessary tax breaks we are giving to the producers for simply harvesting our largest and most profitable legacy fields. The Fair Share Act will keep our share of production revenues from these legacy fields in Alaska so it may be used for the benefit of all Alaskans.