Thursday, May 23, 2013
BP President Says Oil Production Tax Debate Will Continue
BP of Alaska President John Minge rejected the argument by opponents of Parnell’s bill that it would amount to an annual $2 billion “giveaway” to producers.
By far the most prominent bill that failed in the regular legislative session was the cut in oil production taxes proposed by Governor Parnell.
But BP’s president in Alaska, John Minge, says that fight isn’t over.
Minge spoke today at the Anchorage Chamber of Commerce’s Make It Monday event.
He rejected the argument by opponents of Parnell’s bill that it would amount to annual $2 billion “giveaway” to the producers.
While it is difficult to be specific about projects until millions of dollars in engineering work is done, Minge said, he would guarantee far more than the $5 billion of new investment recently promised by Jim Mulva of ConocoPhillips, if the bill were to pass.
Although the bill is not on the special session agenda, Minge said the debate will continue.
"You might be asking, why bother, isn't it over. And it's not. This is really too important of an issue to give up. I firmly believe, I have absolutely no doubt in my mind that there will be a tax change in Alaska because the one that we have is not competitive. It is a matter of time."
Minge noted that the current throughput in the trans-Alaska pipeline – 640,000 barrels a day – is the lowest ever.