ConocoPhillips CEO Jim Mulva is pushing for Alaska to change its tax laws so the third-largest U.S. oil company can bolster its investments in the second-largest oil producing state in the U.S. Mulva emphasized that changes need to take place in Alaska's tax structure this year.
Mulva said he embraces Gov. Sean Parnell's recommendation for immediately changing Alaska tax law and his company is ready to move forward with support for North Slope projects already identified, according to Forbes. Alaska's state House approved legislation earlier this month making changes to state tax laws, but the state Senate has said they will not pick up the bill before the end of the legislative session on April 17.
Texas-based ConocoPhillips (COP) partners with Exxon Mobil (XOM), the largest U.S. oil company, and BP (BP), Europe's second-largest oil company, in Alaska's Prudhoe Bay. Mulva said that if Alaska's tax laws are changed his company would invest aggressively in other projects as well.
Just one new well is planned in Alaska this year, meaning Alaska will see the lowest level of exploration since 1977 while exploration is thriving in Lower 48 states, former Gov. Tony Knowles said, Forbes reported. Mulva said improved tax credits are pivotal to boosting new exploration in Alaska.