Alaska is experiencing an energy renaissance, thanks to a stable fiscal framework that gives businesses and investors the certainty they need to put down roots, create jobs and build a future here.
We have called Alaska home for more than half a century and have seen firsthand how its prosperity rises and falls with the health of our resource-related industries.
From the early days of the pipeline to today’s dynamic economy, one lesson stands out: stability and predictability are the bedrock of success.
We cannot take this success for granted. Alaska is competing every day with other states and countries for investment dollars. Investors have choices, and they look for places where the rules are clear and stable. When Alaska changes its oil tax policy every time there’s a budget shortfall, it sends a message of uncertainty that drives investment elsewhere. With the global economy still recovering from the pandemic and energy markets facing new volatility, this is the absolute worst time to imperil investment by raising the specter of higher taxes.
It’s also important to recognize that the majority of revenue needed to run our state government now comes from Permanent Fund earnings, not oil revenue. If we want to reverse this trend and ensure a healthy, diversified fiscal future, we must promote a robust and expanding energy industry. A stable, competitive tax environment doesn’t just benefit the industry — it supports state-funded programs, small businesses, and communities across Alaska.
The leadership shown by our governor and state legislators deserves recognition. By maintaining a steady, competitive fiscal environment, they have sent a clear message —Alaska is open for business and we are a reliable partner for those willing to invest in our future.
The results speak for themselves. Since the passage of the More Alaska Production Act (SB21), we’ve seen billions in new investment, a leveling off of oil production decline, and a renewed sense of optimism across our communities. For example:
ConocoPhillips is investing nearly $9 billion in the Willow project, which will nearly double ConocoPhillips’ production in Alaska. The company has hired thousands of skilled contract workers to progress the project while the company continues to invest in exploration opportunities on the North Slope. In addition to Willow and new exploration, ConocoPhillips plans to reinvest $1 billion every year in growing their existing assets. These projects don’t just benefit the oil and gas sector — they have a ripple effect, supporting jobs across the supply chain, funding public services and strengthening the fabric of our state.
Santos and its partner Repsol have spent more than $3 billion to bring on Pikka Phase 1 with first oil expected by this spring. More than 2,000 workers were employed during the peak of construction. They are preparing to extend and expand Pikka beyond the 80,000 barrels per day they will produce with Phase 1. This month, they began drilling a well at Quokka — which looks to be another significant project that will require billions of dollars of new investment and deliver even more production.
Hilcorp is investing billions on the North Slope, employing thousands of workers, tripling production at Milne Point since 2014, stabilizing Prudhoe Bay and drilling the first new well at Point Thomson in over a decade. Hilcorp is also advancing Project Taiga, a $1 billion development project expected to add over 45,000 new barrels per day. In Cook Inlet, Hilcorp continues to invest hundreds of millions annually to deliver critical gas supplies, support local jobs and strengthen Southcentral Alaska’s energy security.
Challenges remain, however. We all know the state faces fiscal pressures, and there are tough choices ahead. But the answer is not to burden our resource industries with new taxes or sudden policy shifts. Instead, we should build on what’s working — responsible leadership, a balanced approach to budgeting and a focus on long-term growth.
Let’s reject short-term thinking and seize the opportunities ahead. By exercising prudent restraint and maintaining a consistent, competitive tax policy, Alaska can secure its long-term position as a global energy leader.
Alaska’s future depends on our ability to keep the state competitive and attractive for investment. Let’s continue to support the policies and leaders who are making that possible. Together, we can ensure that Alaska remains a place where businesses thrive, families prosper and the next generation can look forward to even greater opportunities.
Now is the time to stay the course.
Jim Jansen is chairman of Lynden and co-chair of the Keep Alaska Competitive Coalition. Joe Schiernhorn is a retired chairman of Northrim Bank and co-chair of the Keep Alaska Competitive Coalition.
