Our economic driver is in decline
Alaska has a production problem – one that won’t be fixed by increased exploration drilling. The pipeline is only a quarter full and the best way to keep it operating is to develop the billions of barrels of reserves in the legacy fields, like Prudhoe Bay, Alpine and Kuparuk.
The oil is there but it will cost millions and millions of new capital to produce it. And that’s why ACES (Alaska’s Clear and Equitable Share) must be fixed.
While exploration is vital to the long-term, developing the existing reserves is critical to keeping Alaska healthy in the near and mid-term. And those reserves fall under the production side of ACES.
ACES offers generous incentives for exploration – and punishing disincentives for production, especially when oil prices are high.
Alaska figured out the exploration side of the tax equation. We now need to balance the production side.
MACC accepts no money from oil producers.
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