Kakivik Supports the Make Alaska Competitive Coalition (MACC)
Anchorage, AK (April 25, 2012) - In supporting MACC, Kakivik recognizes that a robust and sustainable oil and gas industry, the primary driver of our State’s economy, is vital to Alaska’s future. In this time of strong oil prices, most of the world, including the rest of the US, is in a “boom”—investments, jobs and production are increasing. Unfortunately, Alaska is not attracting significant new oil and gas investments and our production is dropping.The flow of oil through the Trans-Alaska Pipeline System (TAPS) has steadily decreased over the last twenty-five years and is now less than 650,000 barrels per day.
Many companies, individuals and consultant experts are on record citing a number of reasons why investment in Alaska is lagging. Certainly the real cost of doing business, with higher prices of goods and services, is one of those. However, Alaska’s tax and fiscal structure are also frequently cited as potential obstacles to investment.
Kakivik strongly encourages Alaska’s State government to consider options to make oil and gas investments more attractive, with the ultimate aim of not only stemming decline, but increasing production. It takes time to fund and implement projects, and the results are often seen months and often years later. We therefore encourage action be considered and taken as soon as practical.
Development and exploration activity in and around the State’s current oil and gas infrastructure have the potential to increase oil throughput in TAPS. Doing so would provide the State tax revenues to support our key infrastructure and programs and thereby the needs of all Alaskans for years to come.
About Kakivik Asset Management, LLC
Kakivik Asset Management, LLC is a full service asset integrity management company, specializing in nondestructive testing (NDT), external and internal corrosion investigations and quality program management. We provide inspectors and technicians, certified to industry standards, to evaluate the structural integrity of the critical infrastructure assets of our energy, industry and government clients.