Alaska lawmakers slash oil taxes, hope to spur output
While the old tax system produced billions of dollars in surpluses for the state treasury, it meant Alaska's tax rate topped 50 percent when oil prices were high. Governor Sean Parnell, Palin's successor, said the cut would set the stage for future growth as the state tries to reverse decades of declining oil output.
"We are signaling to the world that Alaska is back, ready to compete, and ready to supply more energy once again," Parnell, who introduced the bill, said in a statement.
Oil production from Alaska's North Slope peaked in 1988 at over 2 million barrels per day, led by the Prudhoe Bay field which averaged 1.6 million bpd that year, according to state Department of Revenue statistics. Production in 2012 averaged 579,400 bpd, with Prudhoe Bay production down to 265,200 bpd. |
