ConocoPhillips Co. made a billion dollars in after-tax Alaska profits so far this year, including $551 million in the last quarter, the company announced Wednesday.
The company used the earnings announcement as example of why Alaska should lower its taxes, while an Alaska legislator said that proved there was no need for the reduction the company sought.
Conoco spokesperson Natalie Lowman acknowledged the company was doing well in Alaska.
“We’ve never said we don’t make money here, that’s what we’re here for,” she said.
What the company has been arguing, she said, is that if Alaska had “better fiscal terms,” or lower taxes, her company would invest more in Alaska and increase production and jobs.
The company also reported $202 million in capital investment in Alaska, while investing $1.288 billion in the Lower 48 and Latin America during the quarter.
“It would seem to me that people would be more concerned about getting more investment in Alaska, similar to that the Lower 48 is doing because of their more attractive fiscal regime,” she said.
State Sen. Bill Wielechowski, D-Anchorage, said Wednesday that what he saw in the Conoco numbers was “blockbuster” profits that showed the company was doing extremely well despite the tax rates under the Alaska’s Clear and Equitable Share tax system.
“Every year since ACES was passed Alaska has outperformed the Lower 48 by significant margins,” he said.
Wielechowski called Alaska “one of the most profitable places in the world for the oil and gas industry.”
He cited data in the Conoco earnings report showing that the company’s net income per barrel of oil equivalent was $28.16 in Alaska, and $2.97 down south.
Lowman called that an unfair comparison, because the term “barrel of oil equivalent” includes both natural gas and oil.
“Natural gas is hugely depressed compared to crude oil right now,” she said.
Wielechowski acknowledged that it was “always difficult to get an apples-to-apples comparison,” but said that for the last 10 years, before and after ACES and in different market conditions, Alaska has had above average profit margins for the industry.
ConocoPhillips reported producing 190 thousand barrels of oil per day in the last quarter, down from the 200,000 it averaged all last year and the 208,000 from the year’s first quarter.
That number will decline next quarter for planned maintenance downtime, company officials said.
They told industry analysts that will likely reduce production by 40,000 to 50,000 barrels per day during the quarter.
• Contact reporter Pat Forgey at 523-2250 or at patrick.forgey@juneauempire.com.
Comments (13)
Add commentCome on!
"What the company has been arguing, she said, is that if Alaska had “better fiscal terms,” or lower taxes, her company would invest more in Alaska and increase production and jobs."
Only politicians who have been utterly corrupted by the big money influence of big oil would believe that lie.
Good thing we don't have any politicians like that...
Yeah, A Billion dollars.....
Just doesn't go as far as it used to. So with Conoco already making 10x what they make per barrel down south, they are on track to make 2 Billion this year. So the giveaway by our governor would double their profits. Does this seem just a tad bit greedy to anyone besides me?
Thats Not Enough?
How the heck can anyone say they need a $2billion/year giveaway?
Related information
I read an interesting report entitled "What five oil companies did with profits". It was in a blog called "Think Progress" - so it might be from one of those evil liberal sources. If anyone else would like to read it, here is the link:
thinkprogress.org/climate/2012/07/24/574161/what-five-oil-companies-did -with profits/?mobile=nc
@ wally - Think Progress is
@ wally - Think Progress is not only an "evil liberal source", it's funded by George Soros. Cue dust!
How do you get hooked up with all these sites so full of bs? Do you click on links at Huffpo?
Here's a better read on oil company profits -
http://www.businessweek.com/ap/2012-07-19/lower-prices-slice-profits-for...
Don't you love how politicians bloviate -
"Wielechowski acknowledged that it was “always difficult to get an apples-to-apples comparison,” when he was called out by the company spokesperson but he'll keep spreading untruths anyway to further his agenda!
Calypso
I read the Business Week article - a lot of speciulation.
However the Think Progress has a lot facts and figures, Perhaps you can show where those figures are erroneous or false. Did you take the time to look at the Think Progress article, or just dismiss it without evaluating it?
I recall the Senate Finance Committee hearing shown on Gavel to Gavel when they had testimony from the Dept. of Revenue - they too said something much to the effect that it was difficult to make comparisons, and they didn't really have recent figures. I guess if you think the Senators were/are confused, our State administration seems to be equally confused.
"No. You don't read news. You
"No. You don't read news. You read stuff you agree with. Just because somebody's [crap] smells like yours, doesn't mean it's not still [crap]."
Greed
It seems to me this is part of the reason our gas prices stay so high. I was in Oregon last week where fuel was showing as low as $3.27 per gallon. Not bad and I have not seen our fuel prices go down below $4.00 in quite some time.
Spiff
You gotta be a little more specific in comments. You can't just say or write "No you don't read the news. You read stuff you agree with."
Who is "you"?? Calypso, swimmergirl, aynrand or latitude 58?
The world of commenting on articles is very open, but it is not meant to be a place where people can just "vent" their emotions or feelings. I think ( maybe I am just a dreamer or idealist) that comments should be a place where people can agree or disagree, confront each other's opinion with facts and evidence.
I know that metaphors like smelling someone's "crap" stir up visions and emotions, but it doesn't really give others something they can discuss or debate.
I personally learned a lot in life, not entirely through classes and lectures, but from students confronting me and not just being unhappy with what I said, but could prove me wrong. Learning to "eat crow" is not easy, but it what one has to do when someone confronts them with facts and evidence and not just saying "somebody's crap smells like yours" . That gets people nowhere in trying to discuss and debate real things that are important to them.
Calypso
Hey, I had a simple question that you never answered.
Did you or did you not read the article from Think Progress"?
I read the article you recommended and evaluated it as best I could.
But you never answered a simple question.
Does that mean that you can criticize other recommendations and never read their suggestions, and that only you and the sources you cite have any value??
wow, saw the weather forecast that we might have showers today. However, it turned out to be a beautiful day. Whoops, I need to pull the curtains because I know we were predicted to have showers, but I can't face the reality that it was a pretty nice day.
Thanks Calypso for reminding me to pull the curtains and deny reality. You make life so simple that one doesn't even have to think.... just go with what one has been told.
Corporations
Corporations have th right to make money. But I do believe that some industries use influence in government to raise their profits in very unhealthy ways -unhealthy for Americans.
The oil companies should not be taking money from our state just to increase profits that are already acceptable and even admirable.
Why should we give huge tax breaks just to one type of industry? With no set terms on how parting with that money will help future Alaskans?
What can Alaskans do to curb the inappropriate influence of the oil industry over our elected officials?
Wally
It was an (obviously poor) attempt at humor. I was quoting from the site "$%&t My Dad Says" and it was meant to point out that most of us read from sources who tend to support our world view and not provoke critical thinking. I wasn't attempting to single out anyone as I think we all do it. sorry for not setting up the quote in any sort of context ... agree with your main point.
Wally
There you go with your lectures again...must be the teacher in your blood. The only gripe I have about your lectures is that you don't say anything of any use to me.