Let’s work together to keep Alaska’s oil industry thriving Message From CEO Rebecca Logan
A lliance Members and Friends: It is springtime in Alaska and that means we can count on two things: The Meet Alaska conference and an oil tax proposal from the Alaska Legis- lature. At the time of this writing, two pieces of legislation target- ing the oil industry have been introduced. Senate Bill 92, “An Act establishing an income tax on certain entities producing or transporting oil or w in the state; and providing for an ef- fective date” and SB 112, “An Act relating to credits against the oil and gas production tax; and providing for an effective date.” SB 92 is a tax targeted at one company, Hilcorp, and ignores the significant role the compa- ny has played in the Cook Inlet and on the North Slope, and will continue to play if the state pro- vides a stable business climate. A quick recap of what Hilcorp has done since it first arrived in 2012: n Hilcorp came to Alas- ka when the Railbelt was fac- ing a natural gas shortage and preparing for the possibility of brownouts. It immediate- ly invested to stabilize natural gas supply for the Railbelt. At that time, the Alliance had 30 members in Kenai … within two years, we had 80! n In 2020, Hilcorp stepped in to acquire BP’s North Slope assets. As a privately owned company, Hilcorp committed to
to $5. As always, discussing taxes and the impact on Alaska is fair, but it is important to be sure we are dealing with accurate infor- mation. You will hear legislators claim this will produce about $400 million annually, but the rev- enue sources book puts that figure closer to $190 million. You also will hear legislators referencing a 2023 presentation from the consulting firm Gaff- neyCline that such an increase in taxes would “likely not lead to material reduction of exist- ing production,” claiming this is evidence it will not impact future investment. I think we all understand the difference be- tween impacts on existing activ- ities and the future investment needed to grow production, and future tax revenue to the state. Our North Slope producers have repeatedly told the Leg- islature the tax changes would make the state a less attractive place to invest. With the new administration in Washington, including majorities in the House and Senate, we have an opportunity to increase our resource development activities in Alaska and grow our tax base. Let us work together to make sure the Alaska Legislature is focused on the same goal — growing the private sector rather than increasing their tax rates.
being a new partner and opera- tor on the North Slope — bring- ing years of experience in maxi- mizing production from late-life fields that many others had given up on. n As a direct result of their investments, Hilcorp arrested production decline on the North Slope and significantly increased production. Hilcorp recently celebrated 10 years of ownership at Milne Point, where it tripled production from 17,000 barrels per day in 2014 to more than 50,000 barrels per day in 2025. Hilcorp continues to invest hundreds of millions on the North Slope and Cook Inlet. In 2025, Hilcorp plans its larg- est-ever budget for Alaska. SB 112 is a tax targeted at North Slope producers, decreas- ing the per barrel credit from $8
Respectfully, Rebecca
THE LINK: MARCH 2025
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