OPINION: 10 years later, we still support Alaska’s oil tax system

Updated: 2 minutes ago Publication date: 2 minutes ago

Recent developments this campaign season remind us of Mark Twain’s oft-cited quote: “A lie can travel halfway around the world before the truth has put on its shoes.” We want to set the record straight and address the lies circulating about Alaska’s oil taxes.

In 2014, we joined with more than 500 Alaskan businesses and leaders from across the state to oppose a ballot measure that would have overturned Alaska’s current oil tax structure (Senate Bill 21). This ballot measure failed because voters across our state, from Fairbanks to Anchorage to Utqiagvik, wanted to avoid a return to a period of dangerous oil production declines that could deal a serious blow to Alaska’s economy.

Now, 10 years later, the same old rhetoric has resurfaced, referring to a long-debunked “gift” to oil companies; However, there are also outrageous claims that the current oil tax structure is somehow the reason for the closure of four Fairbanks schools. We proudly continue our support for the oil tax reform that was implemented ten years ago. We’re doing this because the facts show it’s the right decision for Alaska’s economic future.

Anyone who takes the time to investigate can clearly see the truth. Despite turbulent swings in oil prices and the global pandemic, Alaska’s oil production has remained largely unchanged under the current tax system reapproved by voters 10 years ago. Instead, we have maintained a tax system that has proven to be competitive and attractive to investors through high and low oil prices, leading to increased activity in both existing and new oil fields.

And this increased activity is paying off today; Oil production has stopped its free fall and has stabilized at just under 500,000 barrels per day over the past decade. Even more exciting are two large exploratory wells drilled in the Pikka (2013) and Willow (2016) fields. Billions of dollars are currently being spent on these megaprojects, and these new fields will significantly increase the amount of oil flowing through the pipeline, as the government estimates oil production will rise to 600,000 barrels per day by 2032. More than 20 years.

More production leads to more oil concessions; that means billions of dollars in direct deposits into the Permanent Fund. No other industry remotely compares to oil’s direct contribution to supporting dividend payout.

But let’s talk about the things that matter most to Alaskans — especially to us as a former labor leader and current small business owners — spending, economic activity, and jobs for Alaskans.

Today, industry spending supports more than 1,000 Alaska businesses. While billions of dollars are now being spent on the North Slope, some contractors report being busier than in the pipeline days nearly 50 years ago. Today, it is difficult for union halls and employers to meet workers’ demand, which is a problem we welcome.

The last thing Alaska needs is to reverse course and put the brakes on the exciting momentum of growing our economy and creating new economic opportunities for Alaskans.

The resurgence of the oil industry is one of the bright spots of Alaska’s economy today. Don’t be fooled by the lies spreading over the airwaves later this campaign season. Let’s keep Alaska growing now and into the future.

Rick Boyles, Rick Mystrom, Linda Leary And Bob Berto They were co-chairs of the successful 2014 No on 1 campaign. Boyles (Fairbanks/Anchorage) is the former president of Alaska Teamsters Local 959, Mystrom (Anchorage) is a businessman and former mayor of Anchorage, and Leary (Anchorage) and Berto (Ketchikan) are small business owners.

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