Yes. We want to attract as many new producers and explorers to Alaska as possible. A more competitive and economically viable North Slope will help Alaska by increasing jobs, investment, and production. As it stands today, only a few major producers, which have been reducing investment and cutting jobs, have disproportionate market power on the North Slope. This makes it more difficult for new producers and explorers to invest and add jobs for Alaskans.
The Fair Share Act only applies to the largest and most profitable legacy fields. It continues to encourage new producers and explorers to invest under the existing incentives. It also reduces the legacy producers’ unfair competitive advantage by no longer permitting them to deduct unrelated development costs for new fields from Alaskans’ share of the major legacy fields.
In practical effect, the Fair Share Act helps new producers and explorers while still permitting our legacy producers to enjoy one of the most favorable tax environments in the world. This helps increase Alaskans’ fair share while creating jobs through new investment and production.