Sen. John Coghill
PRODUCTION IS UP, THANKS TO SB 21
BY SEN. JOHN COGHILL
SPECIAL TO MUST READ ALASKA
Respectfully, Dermot Cole made a number of incorrect statements in his printed June 16, 2018 News-Miner article.
The statement that “[o]il production in Alaska is lower now than it was when SB 21 was approved,” is both inaccurate and an inappropriate comparison.
Although SB 21 was approved in 2013, SB 21 didn’t actually start taking effect until Jan. 1, 2014. See the Tax Division’s historical timeline here.
That being the case, an accurate assessment of Senate Bill 21 (oil tax reform) can only start in 2014.
So, let’s look at that.
According to the Alaska Department of Natural Resources Division of Oil and Gas, the Trans Alaska Pipeline System throughput in 2014 was 512,827 barrels per day.
How does that compare to 2018?
The most accurate assessment of current Trans Alaska Pipeline throughput can be found in the upper right-hand corner of the Alyeska Pipeline Service Company’s website. Alyeska was formed to design, build, maintain, and operate the Trans Alaska Pipeline System.
For 2018, as of June 20, 2018 at 3:23 PM, the average barrels produced per day was 540,763.
540,763 (2018) is more than 512,827 (2014). The difference is about 28,000 barrels per day.
540,763 is also more than Cole’s alleged 2013 figure of 532,000.
Contrary to what naysayers have stated, Senate Bill 21 has been a good step in the right direction.
How do we know?
There is evidence. Alaska has seen increased investment. Stable tax policy is one part of the equation. That overall equation has led to higher production projections. Those projections exist today but did not exist in years past.
That’s good news for everyone.
John Coghill is a state senator representing District B Fairbanks-North Pole.