Contact
  • Quicklinks
    • Special Meeting
    • Annual Meeting Photos
    • Doyon Settlement Trust and Distributions
    • Current Job Openings
    • Training & Opportunities
  • Employment
logo
  • Home
  • Our CorporationAlaska Native with national reach
    • Our Lands
      • Department Functions
      • Fire Management
      • Permits
      • Trespass
    • Our History
    • Leadership
    • Media
    • Contact Us
  • Our Shareholders20,000 strong and growing
    • Annual Meeting
      • Annual Meeting Webcast
      • Annual Meeting Photos
      • Board Election
      • Proxy and eProxy Voting
      • Call for Native Dance Videos
      • Shareholder of the Year
    • Training & Opportunities
      • Doyon Leadership Training
      • Employment
      • Holiday Artwork Contest
      • Internships
      • Doyon Roustabout Training
    • Records & Stocks
      • Bad Address List
      • Doyon Settlement Trust and Distributions
      • Enrollment
      • Forms & Applications
      • Stock Classes
      • Stock Wills
    • Funding & Support
      • Doyon Foundation
      • Daaga’ Awards
      • Emergency Basket Fund
      • Funeral Program Assistance
      • General Funds
      • Potlatch Funds
    • Inside Doyon
      • Events & Opportunities
      • Get Out the Native Vote
      • Military Appreciation Book
      • Newsletters & Updates
      • Shareholder Spotlight Nomination Form
      • Arts and Crafts Online Marketplace
  • Our CompaniesExcellence across our pillars
    • Our Family of Companies
    • Oil & Gas Services
    • Government Contracting
    • Tourism
    • Telecommunications
    • Natural Resources Development
      • Exploration in Yukon Flats
      • Mineral Exploration
    • Employee Portal
  • Privacy Policy
  • Sitemap
Home / Our Shareholders / Inside Doyon / Newsletters & Updates / Get the Facts on Ballot Measure 1

Get the Facts on Ballot Measure 1

masthead
« View All
August 17, 2020

Get the Facts on Ballot Measure 1

What are the impacts of the Alaska North Slope oil production tax increase?

  • Hurts Alaska’s economy

Alaska’s economy depends on healthy oil industry to fund essential public services, the Permanent Fund, and critical infrastructure. The ballot measure sponsors acknowledge this measure will increase taxes by at least $1 billion dollars; an independent economic analysis says it represents a 300+ percent increase at $60 per barrel oil prices.
A tax increase of this magnitude will make Alaska less competitive. This will impact investment and could eliminate or postpone oil development projects, resulting in fewer jobs, less oil down the pipeline, and less long-term revenue for the state.

COVID-19 has already devastated economies across the region and the state, and this ballot initiative places additional obstacles in front of Alaska families.
Under the current tax structure, Alaska’s oil production is finally stabilizing after years of sharp declines, and new development projects will help bring Alaska out of recession. This initiative will reverse Alaska’s progress and be a short-term tax gain at the cost of long-term oil production and state revenue.

  • Hurts Alaska families

Alaska families rely on a healthy oil and gas industry. For every Alaska oil industry job, 15 more Alaska jobs are created. The workforce employed by the industry impacts all of Alaska, from Ketchikan to Utqiagvik, including all of the Doyon region.

What does this mean for Doyon shareholders? Sections 7(i)/7(j) of the Alaska Native Claims Settlement Act (ANCSA) ensure that all Alaska Natives benefited from resource development on ANCSA lands. If this initiative passes, it could potentially mean a decrease in distribution amounts.

  • Hurts jobs

Before COVID-19 devastated jobs across the Doyon region, statewide, and the country, Alaska had the highest unemployment rate in the nation and was still climbing out of recession. Following the oil price crash a few years ago, the oil industry lost several thousand jobs and had just begun to turn the corner toward recovery. With one-quarter of all Alaska jobs tied to the oil and gas industry, now is not the time to raise taxes.

The ballot measure sponsors claim that a tax hike of this magnitude on over 80 percent of the production from our state’s largest economic driver will not hurt economic growth or the good-paying jobs Alaskans need. No industry in Alaska can sustain that level of tax increase without it impacting jobs.

The impact of this initiative will be felt directly first-and-foremost by Alaska workers, including Doyon employees and families.

Myths vs. Facts
MYTH: Our current oil tax structure is not working for Alaskans.

FACT: Our current tax structure is working for Alaskans because it is producing MORE OIL and MORE REVENUE for the state than was projected under the tax structure it replaced.

  • Oil production is 75,000 barrels per day greater than projected.
  • Oil tax revenues are $1.5 billion above what was projected.

Source: Alaska Department of Revenue

MYTH: The ballot measure only applies to legacy fields operated by three big oil producers and will not impact the development of new fields. It will encourage new producers to invest in Alaska.

FACT: According to the Alaska Department of Law, the ballot measure is UNCLEAR and badly written – it will create UNCERTAINTY over what oil fields are taxed and how. It will drastically raise taxes on large-producing legacy fields and potentially on other fields, including several new North Slope developments. It jeopardizes future oil industry spending in Alaska.

Source: Alaska Department of Law, October 14, 2019

MYTH: Alaska has been giving away billions of dollars in tax breaks to big oil companies for years.

FACT: Large oil companies were NEVER eligible for the cashable oil tax credits, which only applied to small producers and explorers. Additionally, in 2017, the State terminated all cashable oil tax credits. The State still operates a per-barrel credit under which producers pay higher taxes as oil prices rise.

Source: Alaska Department of Revenue

MYTH: Oil companies have paid zero taxes in three of the last five years under the current tax law.

FACT: North Slope oil companies have paid state taxes EVERY year since oil was produced. Since 2014, Alaska received over $8.7 billion in taxes and $13.8 billion in total state revenue from oil companies, which accounts for approximately 90 percent of Alaska’s tax revenue from business.

Source: Alaska Department of Revenue

MYTH: If passed, the ballot measure will create new jobs.

FACT: The ballot measure means FEWER JOBS, not more, because it raises oil production taxes by over 300 percent at current prices. Low oil prices in recent years forced job losses in Alaska and across the country, but oil industry employment today is growing again. Now is not the time to damage Alaska’s growing economy with a ballot measure that significantly raises oil taxes too far, too fast.

Source: Alaska Department of Labor and Workforce Development

For more information and frequently asked questions, visit www.onealaska.com.

Previous
Shareholder Spotlight: Joe Turner
Next
Interior Alaska Forest Inventory and Analysis (FIA) Underway
  • Our Shareholders
    • Annual Meeting
      • Annual Meeting Webcast
      • Annual Meeting Photos
      • Board Election
      • Proxy and eProxy Voting
      • Call for Native Dance Videos
      • Shareholder of the Year
    • Training & Opportunities
      • Doyon Leadership Training
      • Employment
      • Holiday Artwork Contest
      • Internships
      • Doyon Roustabout Training
    • Records & Stocks
      • Bad Address List
      • Doyon Settlement Trust and Distributions
      • Enrollment
      • Forms & Applications
      • Stock Classes
      • Stock Wills
    • Funding & Support
      • Doyon Foundation
      • Daaga’ Awards
      • Emergency Basket Fund
      • Funeral Program Assistance
      • General Funds
      • Potlatch Funds
    • Inside Doyon
      • Events & Opportunities
      • Get Out the Native Vote
      • Military Appreciation Book
      • Newsletters & Updates
      • Shareholder Spotlight Nomination Form
      • Arts and Crafts Online Marketplace

Categories

  • Uncategorized

Archives

  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • August 2015
  • July 2015

Deadlines & Reminders

January

19

Village Webinar: BLM Land Planning Update

2:00 PM - 3:30 PM
25

KRFF Radio Show ft. Administration Department

11:00 AM - 12:00 PM

February

15

Doyon Offices Closed

8:00 AM - 5:00 PM
  • Contact Us
  • Sitemap
  • Privacy Policy

© 2021 Doyon Limited.