For more than 40 years, Conoco Phillips and its predecessor companies have proudly provided jobs, state revenue and a wide variety of charitable contributions that have made a positive difference in the lives of Alaskans.
Conoco Phillips has given approximately $80 million to Alaska-based nonprofit programs and projects, including more than $24 million to the University of Alaska, under the provisions from the "Charter for the Development of Alaska's North Slope," which dates back to 1999.
Charitable giving is an essential part of our corporate culture. Since 2000, our contributions were based on a formula in that 1999 Charter, which was entered when Phillips Petroleum Company purchased the Alaska assets of ARCO.
This month will mark a transition to a new approach for our philanthropic giving in Alaska. In keeping with our core corporate values, we will continue to reinvest in the communities where we work and live, but those investments won't be based on the Charter formula.
It is no secret that the recent drop in oil prices in the face of continuing high costs is challenging our industry, and we at Conoco Phillips are not immune. We want to reassure Alaskans that we will continue to work closely with nonprofit organizations and community leaders to address needs on a statewide basis. However, the current economic climate will cause us to reduce the total contributions we can make in 2009. We currently anticipate giving between $9 and $10 million this year.
We remain committed to Alaska, and we take our role as a major contributor to the statewide community very seriously. We will continue to show significant support through our philanthropic giving, donations of time and resources from our employees, while maintaining our role as an important driver in the economic engine for Alaska.
These changes will not affect the statewide commitments to the Providence Cancer Center and the University of Alaska that we announced in 2007 and 2008. Our 2007 announcement of a $5 million charitable contribution to Providence will allow more Alaskans to stay near family and friends for instate cancer treatment. And our 2008 pledge of a multi-year, $15 million investment in the University of Alaska will strengthen the university's science and engineering programs for future generations of Alaskans. We stand behind these commitments, which represent just two examples of our dedication to Alaska.
In addition to Conoco Phillips' corporate philanthropy, our employees are committed members of the communities where they live and work. We are your friends and neighbors, and we give generously of our time and money. Last year alone Conoco Phillips Alaska employees volunteered more than 5,000 hours with local nonprofit organizations. Conoco Phillips' corporate and employee giving in Alaska is significant, but the people of Alaska are also very generous givers. We recognize the importance of initiatives like "Pick, Click and Give," which allows residents to support the nonprofits of their choice when they apply for their Permanent Fund dividend. We recently provided financial support to help promote this initiative.
Conoco Phillips will continue our statewide charitable outreach because we want to help improve the quality of life in the communities where we live and work. It is our honor to be able to participate in such a significant fashion in Alaska, to work with hundreds of nonprofit organizations to help Alaskans in need and to fund programs that support education, social services, the arts, civic and youth groups and the environment.
Through this transition, we will continue to provide an annual report to Alaskans that summarizes our philanthropy efforts and our ongoing activities to operate responsibly and protect the environment. On this 50th anniversary of statehood, we are proud to be part of an industry that has helped create a culture of giving and has had such an impact on our state.
Wendy King is vice president, External Affairs, for Conoco Phillips Alaska
By WENDY KING