ConocoPhillips is running in the red in Alaska this year. The company reported an unaudited net loss of $ 76 million for the first three quarters of 2020 and a loss of $ 16 million in the third quarter, it said in an Oct. 29 statement.
During the year, ConocoPhillips also paid substantial sums to the state of Alaska in royalties and taxes.
During the first three quarters, the company paid the state $ 442 million in production taxes, royalties, property tax and state income tax. For the third quarter, the company paid the state $ 136 million.
Since 2007, ConocoPhillips has paid Alaska $ 30 billion in taxes and royalties.
The company’s announcement, which is part of its routine financial reporting throughout the year, comes just days before the Nov. 3 election, when Alaskans vote on a proposed vote that would more than double the state oil production tax on major production fields.
Drilling and other activities on the North Slope were halted earlier this year after a sharp drop in crude oil prices. If the voting measure is adopted, it is likely that the suspension will continue despite the gradual improvement in prices.
“Low prices and the destruction of demand (for oil) have halted almost all drilling, and for the first time since (the) Prudhoe, Alpine and Kuparuk oil fields are all in production, no rig is ‘running in those fields, ”Joe Marushak, president of ConocoPhillips Alaska, told the Alaska State Chamber of Commerce in September.
Marushack said it is unlikely that a drilling restart will resume in 2021 if Voting Measure 1 is passed, raising taxes.