Insight
Alaska tax change reduces burden on North Slope producers
This report is currently unavailable
Report summary
Alaskan Governor Sean Parnell signed Senate Bill (SB 21) in an effort to incentivise investment and stem the state's 25-year decline in oil production. The law, which eliminates the current system's (ACES) progressivity mechanism and amends how tax credits are awarded, will become effective on 1 January 2014.
Table of contents
-
Why the change?
- State government relies on oil tax revenues
- Alaskan production and activity trending downward
-
Senate Bill 21 reduces tax burden
-
ACES's harsher elements overhauled
- Progressivity mitigated, but not eliminated
- GRE is attractive, but open to interpretation
- Credits for losses increased
- Some items on industry's wish list excluded
-
All fields' economics improve
- SB 21 can become a tax increase under certain scenarios
-
Improves on ACES, but still more onerous than in the past
- Federal government benefits
-
Uncertainty remains
- Repeal is real possibility
- Will SB 21 achieve its goal?
- Appendix – economic assumptions
-
ACES's harsher elements overhauled
Tables and charts
This report includes 4 images and tables including:
- Summary of SB 21's changes
- SB 21's impact on valuation of each North Slope field
- Value of hypothetical 50-million-barrel satellite field under various tax treatments and price scenarios
- Timeline of Alaskan oil tax legislation and impact on governments' share
Other reports you may be interested in
Insight
Inflation Reduction Act: all bark and no bite for upstream
The Inflation Reduction Act is a mixed bag of pro-exploration lease sale offerings and harsher fiscal terms. How will upstream fare?
$1,350
Commodity Market Report
North America levelized cost of electricity 2023 (LCOE)
This annual report provides analysis of power technology and generation cost trends in the United States.
$15,000
Asset Report
Tabasco (Kuparuk River Unit)
Tabasco has been developed as a satellite field within the Kuparuk River Unit on Alaska's North Slope. Tabasco began producing in ...
$3,100