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“RECENT TAX CHANGES HAVE BENEFITED TG WORLD

As the smallest explorers to find oil on the North Slope in recent years, the four companies in the joint venture will be test subjects for some of the recent tax changes enacted by state lawmakers last year.

TG World has benefited greatly from an expansion of the tax credit program designed to promote exploration. Even without oil production to pay taxes on, the company has already earned $3.8 million by reimbursing these credits. The state is processing a second claim for $4.9 million and TG World plans to make a third claim for $8.3 million.

Altogether, James said, these credits helped TG World pay ultimately only 35 cents for every dollar of exploration costs.

“It significantly reduces what we’re paying,” James said of the credits.

TG World and the other companies in the joint venture will see a different side of the tax if they bring a field online in coming years and start paying taxes, but, “Overall, it’s not a bad tax system given the comparison to other jurisdictions,” James said.”
http://www.adn.com/oil/story/449256.html

The 25% number was actually proposed during the Murkowski Admn. until someone was bought off. Alaska is still a decent place for oil companies to do business...ask BP how things are going over in Russia.

I've nothing against small producers, but 3-8 million dollars in the oil industry is not a large investment, and they are exactly that- a small producer.

Alaska is still a decent place for oil companies to do business...ask BP how things are going over in Russia.

Alaska has some of the highest in the nation because that’s the only real source of income the state has

Oil is certainly a dominant economic force, but the misconception is that it is the only major economic force in the state. There are many other major industries in Alaska- mining, forestry, air freighting and defense are huge here. However, oil accounts for ~85% of the state govt. revenue, and people treat it the industry like it is a never-ending ATM. There are many people who live here and 'work' as an artist/musician/professional tourist/etc, and demand numerous public services and handouts while remaining utterly clueless where money comes from, and since they don't pay income taxes, seem indifferent to how it is managed.

Again, it has become more difficult for the major producers (the ones who make up the majority of oil produced and revenue generated) to produce oil and transition to gas under her administration.

Tax something to death, eventually it dies.