September 2009 Archives

Commentary on Governor Parnell's speech, yesterday:  One of the joys of this gas pipeline webpage and Lower 48 consulting work, is observing informative speeches.  I say, 'informative', because many convey information but few are actually so well prepared and presented and TIMELY that one looses track of time. This one was like an aesthetic experience (though political speeches are less likely to command such suspension of disbelief more commonly associated with nature, concert and spy novel experiences.)  Yesterday's message from Alaska's new Governor, Sean Parnell (NGP Photo, 9-3-09), was such a message, though.  More coming....

Reference: the Resource Development Council Video, the actual text of the speech, courtesy of the Governor's office, and a copy of Governor Parnell's letter to Interior Secretary Ken Salazar.

Related stories: Juneau Empire by Mary Pemberton. KTUU by Rhonda McBride.  ADN by Sean Cockerham.  Gov. Sean Parnell said Thursday he's not going to negotiate with the oil companies over how much the state taxes natural gas until they unite behind a gas pipeline project and can prove they need the help in order for construction to start.    ...  Sitka Republican Sen. Bert Stedman, who has a lot of say on gasline issues as co-chair of the Senate Finance Committee, said Parnell is wrong on the viability of the TransCanada project. He said he doesn't see how it will come together.  ...  Conoco spokeswoman Natalie Lowman said her company and the other producers will be asked to make billions of dollars in commitments for the project. "The terms that affect those producers will remain the critical issues in moving this massive project forward...."

The Alaska Standard posted our FERC story yesterday.    *     Petroleum News Alaska's Alan Baily reviews Southcentral gas shortage.     *      KTUU.  "Enstar has contracted for all of our gas through 2010 and we don't expect there will be a problem," Mark Slaughter said. "But we were very close last year with deliverability and unless things change, with more production, more development, more drilling going on, there may not be enough gas being produced on the cold days."  And those cold days could be much colder if natural gas supplies dip lower.  Chugach Electric Association sent out a press release Tuesday saying the Regulatory Commission of Alaska approved a gas supply contract between ConcoPhillips and Chugach Electric.     *    Reuters - The Canadian government needs to muster the political will to ensure the C$16.2 billion ($14.7 billion) Mackenzie Valley natural gas pipeline is built, the Northwest Territories energy minister said on Tuesday.     ADN.  Don't look for BP to restart production from its troublesome Badami oil field anytime soon. BP told the state that it will submit an application to suspend operations and production at Badami for another year, until Aug. 31, 2010, according to Petroleum News.     *     The Alaska Dispatch reviews the oil and gas market.    *     The Philadelphia Inquirer (9/2) reports, “Gov. Rendell has, for the second time in a month, dropped one of his tax proposals aimed at helping to close the state's multibillion-dollar budget deficit. Rendell said after meeting with industry officials that he would agree to delay his push to impose a tax on natural gas extracted from the Marcellus Shale. "It won't be in the mix this year," he said, adding that he would likely revive the proposal next year.     *      AFP (9/2) reports, “British energy giant BP has made a "giant" oil discovery in the Gulf of Mexico after drilling one of the industry's deepest-ever wells, it said Wednesday, in a further boost for crude supplies. "BP announced today a giant oil discovery at its Tiber Prospect (well) in the deepwater Gulf of Mexico, " the company said in a statement. "The Tiber well was drilled to a total depth of approximately 35,055 feet (10,685 metres) making it one of the deepest wells ever drilled by the oil and gas industry," it added.