Alaskans are getting less of a share than ever before. For decades, our greatest Republican, Democrat, and Independent leaders have honored our Constitution and applied common sense to ensure Alaskans get a fair share from the sale of our oil.
In 2013, however, the legislature passed SB21. SB21 gives away billions per year in unnecessary tax breaks to the major producers. In fact, just one year after passing SB21, Alaskans received $1.6 billion or 50 percent less in production revenues even though the price of oil and production volumes were the same as the year before SB21 was passed. Since SB21 was passed five years ago, Alaskans’ share of production revenues has been negative in three of those five years.
The two charts below help illustrate the impact of SB21 on our production revenues:
This chart illustrates the collapse of our production revenues after SB21 passed. Note the $1.6 billion or 50 percent reduction in production revenues even though the price of oil and production volumes remained the same. Also, note our production revenues have been net negative for three of the past five years.
This chart illustrates the collapse of our production revenues on a per barrel basis after SB21 passed. It compares periods when the price of oil was roughly the same before and after SB21 passed. Note in 2009, before SB21, the price of oil was $68.34 per barrel, and our share was $12.09 per barrel, while in 2015, after SB21, the price of oil was higher at $72.58 per barrel, and our share was $2.01-roughly one-sixth as much as before SB21.