{"id":2116,"date":"2012-03-15T18:03:37","date_gmt":"2012-03-16T02:03:37","guid":{"rendered":"http:\/\/bertstedman.com\/new\/?p=2116"},"modified":"2012-03-15T18:05:38","modified_gmt":"2012-03-16T02:05:38","slug":"pfc-energy-presents-to-senate-finance-committee-on-sb-192","status":"publish","type":"post","link":"http:\/\/bertstedman.com\/new\/?p=2116","title":{"rendered":"PFC Energy Presents to Senate Finance Committee on SB 192"},"content":{"rendered":"<p>Today in the Senate Finance Committee, PFC Energy, a global energy consulting firm specializing in oil and natural gas fiscal issues, gave the first of many presentations relating to the Senate\u2019s oil and gas tax bill, Senate Bill (SB)\u00a0192.\u00a0 (See my previous <a href=\"http:\/\/bertstedman.com\/new\/?p=2085\" target=\"_blank\">blog post<\/a> for more detail on SB 192.)<\/p>\n<p>Gerald Kepes, a senior partner with PFC Energy, presented on two key topics: the overall competitiveness of Alaska\u2019s current oil and gas tax relative to other jurisdictions worldwide and the role of Alaska assets within the global portfolios of the three major North Slope producers, BP, ExxonMobil, and ConocoPhillips.\u00a0 Gerald also provided detailed analysis and modeling of key provisions of SB 192.<\/p>\n<p>A key takeaway from the PFC Energy presentation was analysis showing that in Alaska, at oil prices of $100\/barrel, government take of oil profits is one of the highest in the world among developed countries, second only to Norway.\u00a0 It should be noted that among <em>all<\/em> countries\u2014developed and undeveloped\u2014Alaska ranks significantly more favorably.<\/p>\n<p>PFC Energy also presented analysis showing that SB 192 provisions relating to the progressivity tax and to incentivizing new oil production may not do enough to affect change in industry investment behavior.<\/p>\n<p>Finally, PFC Energy presented detailed analysis of the global portfolios of each of the three major North Slope producers.\u00a0 PFC Energy identified that, in terms of their Alaska assets, both BP and ExxonMobil were in what\u2019s called \u201charvest\u201d mode.\u00a0 According to Gerald, when in harvest mode, oil companies, although typically making significant profits, tend to limit reinvestment because they see limited growth opportunity for that particular area.<\/p>\n<p>PFC Energy\u2019s 94 page presentation can be accessed online <a href=\"http:\/\/www.legis.state.ak.us\/basis\/get_documents.asp?chamber=SFIN&amp;session=27&amp;bill=&amp;date1=20120315&amp;time2=0906\" target=\"_blank\">here<\/a>.<\/p>\n<p>I\u2019m looking forward to hearing what the response to PFC Energy\u2019s presentation might be when the Senate Finance Committee takes testimony from oil industry trade and support groups tomorrow morning.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Today in the Senate Finance Committee, PFC Energy, a global energy consulting firm specializing in oil and natural gas fiscal issues, gave the first of many presentations relating to the Senate\u2019s oil and gas tax bill, Senate Bill (SB)\u00a0192.\u00a0 (See my previous blog post for more detail on SB 192.) Gerald Kepes, a senior partner [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"ngg_post_thumbnail":0,"footnotes":""},"categories":[1],"tags":[117,109,116],"class_list":["post-2116","post","type-post","status-publish","format-standard","hentry","category-news","tag-pfc-energy","tag-sb-192","tag-senate-finance-committee"],"_links":{"self":[{"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/posts\/2116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2116"}],"version-history":[{"count":5,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/posts\/2116\/revisions"}],"predecessor-version":[{"id":2119,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=\/wp\/v2\/posts\/2116\/revisions\/2119"}],"wp:attachment":[{"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2116"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/bertstedman.com\/new\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}