Integrity Excellence Respect Get Alaska Moving through service and infrastructure Provide for the safe and efficient movement of goods and people Provide.

Alaska Department of Transportation & Public Facilities

Trade is Transportation

Commissioner Marc Luiken

October 6, 2011

Integrity ∙ Excellence ∙ Respect

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

DOT&PF Mission

Integrity ∙ Excellence ∙ Respect

• Port of Anchorage• Alaska International Airport System• Dalton Highway

Trade is Transportation

• 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

Port of Anchorage

Integrity ∙ Excellence ∙ Respect

Alaska International Airport System

Integrity ∙ Excellence ∙ Respect

•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 engines1 in 8 jobs in Anchorage attributable to ANC

•Aviation contributes $3.5 billion to State economy

• 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

Dalton Highway

Integrity ∙ Excellence ∙ Respect

HB 110

Integrity ∙ Excellence ∙ Respect

• 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

• There are tens of billions of barrels of heavy oil, shale oil and other unconventional resources

Alaska is relatively underexplored: 500 exploration wells on the North

Slope compared to Wyoming’s 19,000

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 two-thirds 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

• Umiat

• Ambler

• Klondike Highway

• Strategic Minerals

Roads to Resources

Integrity ∙ Excellence ∙ Respect

Integrity ∙ Excellence ∙Respect

Questions ?