Correct. I said "E&P profitability". That's the way to look at it, considering the miniscule effect of other CP businesses in Alaska.
Significant part of higher profit is the lack of new investment in Alaska.
I actually agree with that. And getting to the real answers to the problem actually needs some adult conversation, not a bunch of "It's Palin's fault" BS. At least she tried to address it with significant tax breaks under ACES for exploration.
ConocoPhillips has been coining money in Alaska for decades under 3 different tax systems. And they've been spending a far smaller relative amount on capital investments and exploration under all 3 tax systems. Capital expenditures are actually UP under ACES, although clearly not enough.
Alaska has some built-in disadvantages to new exploration but also some existing infrastructure advantages. I'd like to get to the bottom of it, but the debate up there has turned poisonously political. Fat chance to get at the facts in that environment. And with all due respect, thackney, you're not helping with some of the sources you quote. The Big 3 has long since demonstrated that they have not earned the "trust me" seal of approval in Alaska.
Cannot you not look at those two statements and see how they contradict each other. ConocoPhillips is in the business to make money. They are going to put their money where they get the best return.
I left Alaska to return to Texas after ACES was put into effect. The engineering group I was leading then dwindled down to 1/3 its size in a few years. I hired people who worked for me in Alaska back down in Texas. I know first hand of the projects that were shut down when this went into effect.
It is an insane squeezing of the golden goose. Alaska has as much fiscal stability as a low-end 3rd world country. And Palin wasn't alone in pushing that mess into place.
It is ridiculously convoluted oil tax system, and not just ACES. When I see the success of straight forward plans as executed in Texas and North Dakota, I can not help but wonder why Alaska doesn't get a clue. My original point on this thread, was of all the real accomplishments of Palin, I would not lead off with the two that have significant complaint and are in the process of being changed in current Alaskan actions.