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Author Topic: Without tax break, BP abandons Alaska heavy-oil project Back to Topics
angel4me

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San Jose

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Message Posted: Nov 24, 2012 12:04:41 AM

So far, the debate over a state oil-tax cut hasn't gone the way Alaska's three major oil producers wanted, so one of them has announced it's scaling back pioneering-but-costly North Slope exploration. That's the takeaway from a Journal of Commerce article that says BP has announced plans to reduce investment in technically challenging efforts in Alaska's Arctic oil and gas fields, including shutting down an experimental heavy-oil production project on the North Slope.

BP Alaska President John Minge blamed the Alaska Legislature's unwillingness to reduce its oil-production taxes to encourage long-term development, according to the article.

“We have realized there is a certain mismatch in our strategy and it is time to take corrective steps. We have been too heavily focused on developing
Visit Alaska Dispatch for full article
REPLIES (newest first) Post a Reply
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drpepperTX
Champion Author Texas

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Message Posted: Nov 26, 2012 11:36:57 AM

Poor reporting.
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NedW
Champion Author Indianapolis

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Message Posted: Nov 26, 2012 8:02:54 AM

Taxes=cost of doing business. Who pays for that? The consumer does.
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remay
Champion Author Houston

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Message Posted: Nov 26, 2012 6:05:12 AM

As if they needed one?
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DrCashFlow
Champion Author Massachusetts

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Message Posted: Nov 26, 2012 5:33:13 AM

if it's economic, do it. if it isn't don't.
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mpg611
Champion Author Cleveland

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Message Posted: Nov 25, 2012 6:11:11 PM

Im surprised that a 'conservative' state such as Alaska wouldnt offer tax breaks. Then again, theres a difference between being an economic conservative and a social conservative.
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exilion
Champion Author Missouri

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Message Posted: Nov 25, 2012 10:37:14 AM

When they can't find oil elsewhere, they will be back.
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jkpsr
Champion Author New Jersey

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Message Posted: Nov 25, 2012 12:07:52 AM

Why should we give BP anything? We should own them after the gulf oil spill.
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seeyardee
Champion Author Sacramento

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Message Posted: Nov 25, 2012 12:07:32 AM

One less place BP can spill oil.
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boatmen
Champion Author New York

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Message Posted: Nov 25, 2012 12:05:37 AM

Greedy biches
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cheaper0ON
Champion Author Ontario

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Message Posted: Nov 25, 2012 12:05:11 AM

Okay.
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mrbee
Champion Author Little Rock

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Message Posted: Nov 25, 2012 12:03:56 AM

Not good.
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PDQBlues
Champion Author San Diego

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Message Posted: Nov 24, 2012 7:16:06 PM


If BP cannot operate without tax breaks, then let the free market dictate its moves. Corporations like BP can do without our tax money.
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nsdp
Champion Author San Antonio

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Message Posted: Nov 24, 2012 1:12:43 PM

No the unsaid issue is Aleyska Pipeline is now 35 years old. The probable oil available on the North Slope doesn't justify the cost of replacement unless you assume $150/barrel for oil. Does absolutely no good to do a bunch of exploration if you can't afford to get it to market.

Also means China won't get it either johton.

[Edited by: nsdp at 11/24/2012 1:14:50 PM EST]
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ziyulu
Champion Author Austin

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Message Posted: Nov 24, 2012 12:31:57 PM

They are abandoning it because they can't afford it after paying so much fines for the oil spill.
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johton
Champion Author Seattle

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Message Posted: Nov 24, 2012 12:22:55 PM

Perfect, now China can move in!
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mitt4prez
Champion Author Tacoma

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Message Posted: Nov 24, 2012 12:22:34 PM

This is how it hsould be.
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fora_7
Champion Author Montreal

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Message Posted: Nov 24, 2012 10:52:12 AM

Green Party will be happy
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CityCouponer
Champion Author New Orleans

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Message Posted: Nov 24, 2012 10:30:43 AM

I'm not surprised.
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ClarkSC
Champion Author South Carolina

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Message Posted: Nov 24, 2012 10:24:28 AM

Good!
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APlus
Champion Author San Antonio

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Message Posted: Nov 24, 2012 8:37:03 AM

Gas Businesses if they do choose to - must weigh the costs of getting the Gas vs what they can sell it for. If it costs to much to make and prices do not cover their actual costs with a profit - we do not do it.
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Sneakers55
Champion Author Houston

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Message Posted: Nov 24, 2012 8:35:22 AM

On Nov 24, 2012 1:52:49 AM, pricewar wrote:

>Obama knows how to extract blood from a turnip

Since when did Obama have any effect in setting state tax rates? Of course, for those who hate Obama, anything is possible.
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bar1035
Champion Author Charlotte

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Message Posted: Nov 24, 2012 8:32:24 AM

everyone wants a tax break these days. no different than apple and google
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BBopp
Champion Author Dayton

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Message Posted: Nov 24, 2012 8:22:46 AM

Why am I not surprised? BP was low on my list, I didn't think my opinion could drop any lower of them, but it did.
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dandvicb
Champion Author Bridgeport

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Message Posted: Nov 24, 2012 8:04:03 AM

they're making billons per month anyway!!
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grandpadon28110
Champion Author Charlotte

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Message Posted: Nov 24, 2012 7:33:28 AM

Ok.
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yardslave
Champion Author Oklahoma City

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Message Posted: Nov 24, 2012 7:11:01 AM

Can't have an advantage ALL the time anymore....
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Ltdc
Champion Author Long Island

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Message Posted: Nov 24, 2012 7:07:51 AM

And so it goes.
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epf
Champion Author Grand Rapids

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Message Posted: Nov 24, 2012 6:51:23 AM

Hurray!
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MN1
Champion Author Twin Cities

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Message Posted: Nov 24, 2012 6:43:09 AM

Too bad.
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FocusST2
Champion Author North Carolina

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Message Posted: Nov 24, 2012 6:14:27 AM

The amount of money BP makes off of oil without tax breaks they're making money. Besides with all of the damage BP has created they don't deserve a tax break.
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MImusicman
Champion Author Michigan

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Message Posted: Nov 24, 2012 6:03:00 AM

Ugh
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OHMS
Champion Author Orange County

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Message Posted: Nov 24, 2012 5:01:57 AM

heaven only knows who is right here
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SkooterG
Champion Author Phoenix

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Message Posted: Nov 24, 2012 4:20:35 AM

Tough here to figure out who the bad guy is.
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OHMS
Champion Author Orange County

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Message Posted: Nov 24, 2012 3:33:13 AM

NO tax break?
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LauraLea5
All-Star Author Ontario

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Message Posted: Nov 24, 2012 3:27:25 AM

okay
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JohnofGB
Champion Author Flint

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Message Posted: Nov 24, 2012 3:25:10 AM

Don't let the door hit you in the butt.
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pricewar
Champion Author Ogden

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Message Posted: Nov 24, 2012 2:52:49 AM

Obama knows how to extract blood from a turnip
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Pozole
Champion Author Portland

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Message Posted: Nov 24, 2012 2:22:51 AM

...I wouldn't trust them...
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MrLefty0706
Champion Author Chicago

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Message Posted: Nov 24, 2012 1:27:00 AM

There should not be any tax breaks for companies that make more than 10 billion in profit per quarter.
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72_Monte
Champion Author Twin Cities

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Message Posted: Nov 24, 2012 1:07:46 AM


Can't make a bigger buck without that tax break, huh?
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GasholeMI
Champion Author Lansing

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Message Posted: Nov 24, 2012 1:05:56 AM

A lot of hate for BP.
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Zonk
Champion Author Michigan

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Message Posted: Nov 24, 2012 1:00:53 AM

I don't disagree with BP at all. Am really shocked that they are still in business.
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humblepie
Champion Author Toledo

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Message Posted: Nov 24, 2012 12:59:23 AM

smart move
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BinAlaska
Rookie Author Alaska

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Message Posted: Nov 24, 2012 12:56:12 AM

For Those who cannot read, it is Our STATE legislature here in Alaska that is not giving Tax Breaks, NOT the Federal Government.
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kishoreCA
Champion Author Ventura

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Message Posted: Nov 24, 2012 12:55:40 AM

alaska is saved from a spill :-)
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obimerrill
Champion Author Cincinnati

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Message Posted: Nov 24, 2012 12:55:19 AM

Yep...and more to come in Obama's second term
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Tiernan
Champion Author Chicago

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Message Posted: Nov 24, 2012 12:54:24 AM

Serves em right!
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Bezalel
Champion Author Oklahoma City

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Message Posted: Nov 24, 2012 12:53:27 AM

"Maybe BP can't afford a big investment with all the fines they have been paying "

Don't bet on that! They were making record profits very recently. They take a one time charge for the fine, raise prices, and they're back.
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el_fr
Champion Author Massachusetts

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Message Posted: Nov 24, 2012 12:49:20 AM

No more subsidies
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CatMan623
Champion Author Houston

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Message Posted: Nov 24, 2012 12:47:54 AM

I'd just as soon BP didn't do any exploration work for a decade or two...
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