On May 14, 2026, the Alaska Oil and Gas Association (AOGA) issued a statement condemning the Senate Resources Committee’s rewriting of Senate Bill 280. SB 280 began as a bill intended to drive investment in the Alaska LNG project, but a long series of committee meetings have since turned it into a State revenue driver. The bill is currently on version L. Senate Resources is scheduled to revisit the bill 6 more times before the end of the session.
AOGA’s statement in full:
What began as legislation intended to help deliver a gasline for Alaska has now been hijacked into a sweeping oil tax increase rushed through the process without meaningful economic analysis, public vetting, or a clear understanding of the consequences. These changes jeopardize not only the prospects of a future gasline, but also continued oil investment and development on the North Slope.
The Senate Resources Committee substitute unveiled today would impose a new 30-cent-per-barrel tax on every barrel of oil produced in Alaska and increase the minimum production tax by 50 percent. These are major fiscal changes that could significantly impact investment, jobs, future production, and throughput in TAPS. Yet the committee has offered no credible economic modeling showing the long-term impacts on Alaska’s competitiveness, future investment decisions, or state revenues.
Ironically, while the committee substitute renames the legislation the “Supporting Alaska Gasline Act,” these tax increases move Alaska in the opposite direction by undermining the stable, competitive investment climate necessary to advance both a successful gasline project and future North Slope development. Large-scale Alaska energy projects require billions of dollars in long-term capital investment and development timelines measured in decades. Sudden and unvetted changes to Alaska’s fiscal system create uncertainty that investors price directly into their decisions.
AOGA strongly opposes these rushed and unmodeled additions to legislation that should remain focused on improving the economics and long-term viability of an Alaska gasline project.
AOGA is a professional trade association whose mission is to foster the long-term viability of the oil and gas industry in Alaska for the benefit of all Alaskans.
