October 2009 Archives
Juneau Empire by Pat Forgey. Murkowski (NGP Photo) wasn't re-elected, but was he right?
Today's story in progress and will be released by this weekend....
This morning on CNBC Interior Secretary Ken Salazar did not focus on the tremendous domestic oil and gas potential of Alaska and the Lower 48, on- and off-shore. Instead, he focused on three energy policy 'drivers': reducing dependence on foreign oil (i.e. not by producing more of our own), creating more green jobs and global warming. The way he is approaching this whole energy issue is perfectly consistent with the way an irresponsible Administration is proceeding as well. I used the term, 'crazy', above because the totally illogical and suicidal energy policy that this country is adopting has to be that or a more devious, intentional effort to strip America of her wealth, her way of life and, indeed, her national security. Alaska's energy policies are also irrational.
In short, both Alaska and America will will economically wither until dramatic energy policy reversals occur. Let me explain.
U.S. Energy Policy.
Alaska Energy Policy.
Calgary Herald. Despite years of delay, an Arctic pipeline has "never been closer" to fruition, federal Environment Minister Jim Prentice (NGP Photo) said Wednesday. ... Inuvik Mayor Derek Lindsay said he doesn't want to see any further delays. Local businesses are banking on a pipeline to kick-start the economy. Lindsay is counting on his support for the project to help him get re-elected in a civic election next week. He lived in Inuvik after the last attempt at the pipeline fell through and said he's hopeful for a positive outcome this time. "I don't want to see that happen again, it crippled this town for 10 years," he said. "This JRP thing is long overdue. . . . I don't want to see us go backwards, for God's sake. Once the pipeline gets the green light, there'll be a lot more activity in town and in the Beaufort (Sea).
Comment -dh: This week we have warned of Federal government threats to the economies of the United States and Alaska...and given you information on how to weigh in. Please weigh in. If the legal record is strong with your comments on the importance of domestic energy in general and OCS in particular, it will be harder for bureaucrats to create new, restrictive rules. Remember, that without future OCS throughput the life of TAPS is prematurely shortened and a future gas pipeline's throughput is compromized--not to mention the rather immediate hit on Alaska's economy discussed yesterday and over the previous week (scroll down) in more detail. Here's how to be involved. Below, is how several of our thousands of readers have become involved:
- EPA Hearing Testimony: Paul Laird (Alliance), Carl Portman (RDC), Marilyn Crockett (AOGA), Michael Terminal(Edison Chouest), Mary Shields (Northwest Technical Services), Brian Benson (Air Liquide), Keith Silver (NANA Management Services), Peter Macksey of STEELFAB, Roger Steen (Air Sciences), Susan Childs (Shell Oil), Brian Tomlinson, Linda Leary (Carlile Transportation), Reed Christensen (Dowland-Bach), Dave Harbour (NGP).
- Mary Ann Pease, MAP Consulting, LLC-AK
- Graham Smith, Alaska Support Industry Alliance
- Rick Braun, Retired Alaskan
- Chris Bell, Fisher Valve and Valve Automation-AK
- Jim Gilbert, Udelhoven Oilfield System Services, Inc.-AK (1)
- Jim Gilbert, Udelhoven Oilfield System Services, Inc.-AK (2)
- Dave Harbour, NGP and CEA
- Commonwealth North
- Lon Wilson, The Wilson Agency-AK
- Jeff Smith, The Smith Group, Inc.-VA
- Brian Tomlinson-AK (NGP Photo)
- Bill Noll-AK
Big Chance To Weigh In On Future Of Alaska's Economy and Lifestyle! In Canada, Government Delay is Also Part of the Problem
This week my corporate, government, education, Alaska Native, youthful, disabled and retired friends should be feeling a certain presentiment, a foreboding coolness in their bones: and it is not the chill of winter...yet. I'll explain.
Don't you agree it is indisputable that TAPS throughput is declining toward zero at a rate of about 4-7% per year? And, our State's operating budget is rising and almost totally dependent on oil and gas tax and royalty revenue? And, without ANWR, without a big new discovery, without a gas pipeline in the next few years and without a miracle, Alaska will be facing an economic meltdown...unless we experience a dramatic, successful OCS exploration program, with a 37.5% revenue sharing provision like Gulf of Mexico states enjoy?
Here's what might be causing those chills, that sense of foreboding: two Federal actions whose comment periods close in a week could shut down that OCS potential, leaving Alaska high and dry, half depopulated and destitute within a decade. One envisions the once proud, independent 49th State becoming a ward of the Federal government before its 60th Anniversary.
Retired Joint Pipeline Office geologist Joe Dygas gives us this O&G Journal tip and editorial remark: Oil and natural gas are indispensable in a growing world energy market, and Royal Dutch Shell PLC plans to make gas roughly half of its total production by 2012, its chief executive officer said on Oct. 8. “This is not merely a shift in our portfolio. Increasing natural gas production and transportation by liquefying it and shipping the LNG to global markets means that more natural gas will be available to displace coal as the fuel for power plants,” Peter Voser said in an address at the Woodrow Wilson International Center for Scholars. (Dygas' Comment: Note Shell's production to be 50% gas by 2012. Industry is clearly ramping up its gas production both in US [lower 48] and overseas. Alaska' s politicians fail to understand the competition they are dealing with while they waste time.)
IBD Debunks NOAA's OCS Advice
Environment: With much of the world still feeling the sting from last year's oil shock, a group of federal scientists is encouraging Washington to limit offshore drilling. Its counsel would best be ignored.
Beware Beelzebub's Enticements! With Sen. Lindsey Graham Caving In and NOAA Weighing In, the Cumulative Attack On Alaska-US OCS Domestic Energy Gains Momentum!
Alaska Dispatch by Rena Delbridge. A complex deal between the state and TransCanada Corp. to spur construction of a multibillion-dollar natural gas pipeline has done little to make the project more commercially viable and could put the state at financial risk, a former state petroleum economist says. Speaking at an oil industry gathering Thursday in Anchorage, Roger Marks (NGP Photo) said
Hundreds of Citizen Responses To Federal Government Assaults On Domestic Energy Are Pouring In -- Pro-Energy Opinions Needed!
1. Clean Air Act Permit - EPA - Shell. (Please comment here prior to October 20)
Example: 10-8-09. Rick Braun, Anchorage. Sirs: I thought the comment period had closed already, but since it is still open I wish to say that the permit SHOULD be issued and soon. The exploration of the Chukchi Sea by Shell can be done safely and will result in significant additions to our state's economy and the nation's energy resources. Both are vital. I do not see any need to restrict Shell's ship operations by monitoring measures that are not applicable to all the other ships operating in the Chukchi Sea area. I also do not see how you can separate the emissions by Shell from all others in the Sea and those being born on the winds from surrounding landmasses. So the only point to denying the permit is to obstruct exploration. Why would you do that when the state and the country needs jobs and energy? Please issue the permits.
2. Testimony for White House Ocean Task Force. (See all previous comments and add your comment here before October 17)
Updates to "cumulative effects":
- 03-15-10. Governor Sean Parnell's (NGP Photo) Battles with the Federal Government
- 12-23-09. Sullivan and Young Fight Beluga Designation
- 12-08-09. Alaskan and American Consumers are Endangered Species
- 12-16-09. Council on Environmental Quality Interim Framework for Marine Spatial Planning (Ocean Policy).
EDITORIAL AND CALL TO ACTION!!!!!
EPA Air Quality Permit: Comment Deadline is October 20. Please go to this webpage and follow the instructions for providing your comment prior to the 20th. Your comment can be simple (Please grant the Air Quality Permit Proposed for Shell Gulf of Mexico Inc. to Operate the Frontier Discoverer Drillship in the Chukchi Sea, Alaska), or more elaborate based on your technical background, Alaska job and economic impact, etc. Here is my earlier commentary, and another here.
White House Ocean Policy Task Force Deadline is October 17. Please go to this webpage and follow the instructions for providing your comment prior to the 17th. Here is my earlier commentary. I believe that this initiative is so complex with such huge national security, economic and environmental risks that it should be set aside until Washington works through some of its other priorities first. Alternatively, work should begin but no artificial deadline set for final adoption until all of the investigation is properly done, comments received from affected stakeholders and appropriate resolution of conflict rationalized. Finally, any prohibition to oil and gas exploration and development whatsoever should be segregated from the omnibus findings and put before Congress as a national defense consideration. Here is the Consumer Energy Alliance reference page.
IOGCC Ends with Resolutions - Governor Perry Takes IOGCC Leadership - BC and Alberta Review Incentives -
Biloxi Round-up, by Dave Harbour (NGP Photo, with Arnold Jackson of Danbury Resources). The Interstate Oil and Gas Compact Commission was born in an age of intense emotional and economic dissent over a half century ago, at the dawn of the modern American oil and gas industry. Authorized by an act of Congress to help states better coordinate the efficient removal of energy resources, the IOGCC today carries on a proud tradition of coordinating best practices among its over three dozen oil and gas producing states' members. Below, the Dallas News quotes remarks made by the new IOGCC President, Governor Rick Perry of Texas. The philosophy Governor Perry brings to IOGCC for his 2009-2010 term is consistent with Governor Brad Henry's (NGP Photo-l) 2009 approach, noted here, " The IOGCC advocates for environmentally-sound ways to increase the supply of American energy. We accomplish this by providing governors of member states with a clear and unified voice to Congress, while also serving as the authority on issues surrounding these vital resources. The Commission also assistsstates in balancing a multitude of interests through sound regulatory practices. Our unique structure offers a highly effective forum for states, industry, Congress and the environmental community to share information and viewpoints to advance our nation's energy future. We stand dedicated to securing resources needed to ensure our nation's energy, economic and national security." North Dakota Commissioner Lynn Helm (NGP Photo-r) with support from Executive Director Mike Smith NGP Photo-l) conducted the business meeting wherein the resolutions adopted were generally consistent with the leaders' philosophy. They included positions in support of oil and gas research initiatives, Congressional action in support of hydrocarbon development in ANWR, education of students in petroleum sciences, regulatory approvals for long-term natural gas pipeline and sgtorage agreements, among other actions. (Scroll down for earlier stories. More coming Thursday and Friday....)
Dallas News by Elizabeth Souder. The Interstate Oil and Gas Compact Commission, a voice against climate change legislation, named Gov. Rick Perry chairman (NGP Photo with IOGCC Associate Executive Director Gerry Baker). Perry, who doubts humans contribute to climate change, has used the issue to campaign for reelection. In a speech to IOGCC members in Biloxi, Miss., he called a climate change bill being considered by Congress "the single largest tax in the history of our nation," and warned the bill would trigger massive job losses and inflation.He said: "It is great to be here in Biloxi, in the company of people who have a clear understanding of energy based on science and experience, not assumptions and paranoia."
Calgary Herald by Dan Healing. After a year of numerous royalty changes from governments in both Alberta and British Columbia, researchers at investment bank Peters & Co. felt the time was right to revisit, reassess and update.Their verdict is . . . B.C. still has the more attractive royalty regime on comparable Montney formation horizontal Dawson-type wells. Alberta has brought in Band-Aides aplenty to help the oil and gas sector after its new royalty framework started at the worst possible time last January. There's the optional transitional royalty program, a drilling incentive program that pays $200 per metre on qualifying wells until April 1, 2011, and a new well royalty reduction.