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DOT&PF Mission Get Alaska Moving through service and infrastructure • Provide for the safe and efficient movement of goods and people • Provide access to state services • Provide access for the development of state resources Integrity ∙ Excellence ∙ Respect Trade is Transportation • Port of Anchorage • Alaska International Airport System • Dalton Highway Integrity ∙ Excellence ∙ Respect Port of Anchorage • 85% of all goods and services for Alaska enter through POA • Containers shipped via road and ARRC • Other goods broken down and delivered to villages by Alaska’s Air Carriers Integrity ∙ Excellence ∙ Respect Alaska International Airport System •Gateway for trade and commerce between North America and Asia • ANC – ranked #5 airport in the world for cargo tonnage and #2 in the U.S. for landed cargo weight •Airports are economic engines 1 in 8 jobs in Anchorage attributable to ANC •Aviation contributes $3.5 billion to State economy Integrity ∙ Excellence ∙ Respect Dalton Highway • Strategic road to Alaska’s oil fields – the bank • Supports 12,000 jobs on the North Slope; services Alaska and all of US • 980 trucks supplying oil field support, equipment and services each week • Alaska’s first major road to resources Integrity ∙ Excellence ∙ Respect HB 110 • The North Slope of Alaska remains a world-class energy basin, with more oil than any other Arctic nation • There are 40 billion barrels of oil and 236 trillion cubic feet of natural gas on the North Slope and OCS Alaska is relatively underexplored: 500 exploration wells on the North Slope compared to Wyoming’s 19,000 • There are tens of billions of barrels of heavy oil, shale oil and other unconventional resources Integrity ∙ Excellence ∙ Respect North Slope Production Integrity ∙ Excellence ∙ Respect Problem • • • • Production is declining while high prices are causing a boom around the world Higher taxes have chilled investment Alaska’s economy is fueled by a robust oil patch, however the pipeline currently runs twothirds EMPTY Low through-put increases maintenance costs and threatens a shutdown Integrity ∙ Excellence ∙ Respect Solution • Reform our oil taxes to be globally competitive • Provide tax credits for drilling in technically challenged fields • Lower the tax rate for drilling new, untapped fields • Cap taxes to encourage more immediate investment at higher oil prices Integrity ∙ Excellence ∙ Respect Roads to Resources • Umiat • Ambler • Klondike Highway • Strategic Minerals Integrity ∙ Excellence ∙ Respect Questions ? Integrity ∙ Excellence ∙ Respect