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November 2009
Legislators to Hear Mayors Re: Energy - National Association of Regulatory Utility Commissioners To Release Moratoria Study Today
Today, members of the National Association of Regulatory Utility Commissioners (NARUC)--meeting in Chicago--were scheduled to hear a report on the findings of a study to determine the social, economic and environmental costs of not developing oil and gas resources from federal moratoria areas. NARUC Commissioner Emeritus Dave Harbour presented the findings with energy consultants representing SAIC and GTI to the NARUC Gas Committee chaired by S.C. Commissioner O'Neal Hamilton. .
AGIA Critic Speaks - Denali Informs Minister Prentice and Alaska Legislature - Strandberg Presents GRETC View to IAEE
ADN. The full AGIA analysis available. I'm the author of the analysis that the Daily News critiqued in its Nov. 8 editorial, "Certain Failure?" The article, called "Why America May Not See Alaska Natural Gas Soon," a critical evaluation of AGIA's prospects for success, was published in the September 2009 Journal of Economic Issues. Roger Marks (NGP Photo)
National Post by Carrie Tait. U.S. officials hoping to build the Alaska gas pipeline, considered a
rival project to Canada's long-delayed Mackenzie Valley pipeline, met with Jim Prentice (NGP Photo-r), the
federal Environment Minister, last month to update him on their efforts and to discuss "the application of the Canadian regulatory process." * On Veterans Day, Denali President Bud Fackrell (NGP Photo-r) sent a progress report to the Legislature under cover of a letter to Senate President Gary Stevens (NGP Photo-l) and House Speaker Mike Chenault (NGP Photo-l). Fackrell indicated that his company had spent $120 million to prepare the company for its 2010 'Open Season'. Total number of employees and contractors working on the project, he said, is about 95m most of whom are Alaskans. See Fackrell's cover letter here and download the complete report here. Find Denali's webpage here. Fackrell will
be addressing the Resource Development Council for Alaska next week; see that link here. * Calgary Herald by Dina O'Meara. "Third-quarter earnings were ahead of last year for our pipelines and natural-gas storage assets, while
the economic downturn continues to impact power revenues," chief executive Hal Kvisle said during a conference call.
Here is Jim Strandberg's (NGP Photo) presentation of November 9 to the International Association of Energy
Economists (Alaska). Speaking to about 30 economists and interested citizens at the BP Energy Center over a noon hour, he discussed the economic uncertainty of electric utility generation and transmission facilities, along with the scarcity and expense of power generation fuels. He said that these circumstances lead to a 'perfect storm', a time of 'looming uncertainty' requiring a solution that produces reliable power with stable and predictable prices. The solution he proposes is the formation of a Greater Railbelt Energy and Transmission Company (GRETC). Strandberg said the GRETC model is designed to protect ratepayers while providing effective checks and balances. (Here's Rena Delbridge's thorough story for the Alaska Dispatch; and the PNA story is here)
No Deal To Alaska House - Canadian and Alaskan Natives Lobby Against The Hand That Feeds Them
See Our Editorial Below: "Environmental and Alaska Native Extremists Are Sowing Seeds for Alaska's Economic Destruction"
ADN by Sean Cockerham. The nonprofit, Alaska House New York, opened in September 2008, in a 3,000-square-foot space in the Soho neighborhood of Manhattan. Until now, it has been privately financed by founder Alice Rogoff, a wealthy advocate of Alaska Native art. She describes it as an effort to promote the state's business and culture as well as sell art. "I did this because I thought it was really important, not just for the state in the big picture but for the sake of village life and subsistence and Native people whose livelihoods are dependent on so much of this state's economy continuing to flourish," Rogoff said in an interview. "Well, I can't afford to keep New York open anymore so we're either going to close it or we're going to find funding for it." She has proposed various amounts of state support in recent months. Rogoff and other representatives of Alaska House met with a special assistant to Gov. Sean Parnell (NGP Photo) on Thursday and presented a request for a $600,000 appropriation for "public relations and economic development marketing." * ADN by AP. Anti-drilling activists visited federal officials this week to lobby against drilling in the Arctic National Wildlife Refuge and on offshore sites in Alaska. Sarah James from Arctic Village, on the border of ANWR, and five other activists -- including two from Canada -- were in Washington on a trip organized by the Alaska Wilderness League. The group met with several high-ranking officials from the Obama administration -- including Assistant Interior Secretary Tom Strickland and Larry Echohawk, head of the Bureau of Indian Affairs -- as well as members of the Alaska delegation and a staffer for the Senate Indian Affairs Committee. * Peak Oil Review. Shell said it will decide within months whether to begin drilling for oil and gas off the Alaskan coast despite strong opposition. The Anchorage Daily News said Thursday that environmentalists and Alaska North Slope officials are opposing Arctic drilling in the Beaufort and Chukchi seas. (11/6, #14)
Environmental and Alaska Native Extremists Are Sowing Seeds for Alaska's Economic Destruction
Yesterday Brian Tomlinson (NGP Photo) of Anchorage wrote to Governor Parnell after, "having read
in today's Anchorage Daily News that Mrs. Alice Rogoff Rubinstein (ADN Photo), is asking for funds from the State of Alaska to support her pet project, the Alaska House, in NYC's trendy Soho District. Last night the Alaska House hosted an event to 'Celebrate the Bounty of the Bering Sea Before It's Too Late', with the Managing Director of the World Wildlife Fund's Bering Sea and Kamchatka Program, citing the devastating effects of climate change and negative impacts to Alaskan Natives. This issue is highly politically charged with inferences to global warming due to greenhouse gas emissions." Tomlinson spoke for many Alaskans when he went on to urge the Governor to oppose public funding (85% from oil revenue) for a venue that supports fundraising strategies aimed at crushing the oil and gas industry. The Governor and Legislature will surely see this request for what it is and politely but firmly tell Ms. Rubinstein that funding a NYC non-profit--even with an Alaska theme--is inappropriate.
The Washington visit by Alaskan and Canadian Native opponents of reasonable and safe oil and gas exploration and development in the state is more troublesome. It adds to Alaska's struggle to survive 'death by a thousand cuts', which we have been illustrating herein. The cumulative effect of onerous, unfair, Federal regulatory activities is being aided and abetted by certain Alaska Native special interests. These interests seem to care not that the state derives nearly all of its operating budget from energy production. They seem unaware of the significant school, social service, medicaid, welfare, power cost equalization and disaster relief funds that flow toward villages because of the oil and gas bounty. Some of these Native special interests are being supported by environmental activist special interests.
Alaska may be facing a crisis it has never before known: spending its legacy wealth without a way to replenish it. For this we can thank the incompetency of some key elected leaders in state and Federal positions, particularly over the last decade. Being on the brink, the Obama Administration is well equipped to push Alaska's economy over the edge in the next few years, returning Alaska to a pre-pipeline wilderness and govenment dependent economy. President Obama can accomplish this feat with a dedicated staff within the White House, Interior Department, Environmental Protection Agency aided and abetted by grass roots constituencies like the World Wildlife Fund, the Alaska Wilderness League, Arctic Village and the North Slope Borough.
Alaska's elected leaders have not since statehood had such ponderous challenges before them. Successful accomplishment of the mission to protect Alaska's economy and citizens will, indeed, be looked back on as a pioneering and leadership accomplishment of historical proportions. -dh
Thanks To Our Founders and Veterans Who Followed, We Observe Veterans Day in America and Remembrance Day in Canada--One More Time
To Our American Readers (Learn about Canada's Remembrance Day):
Please watch this with the family: http://itm.edgeboss.net/wmedia/itm/video/broadcast/2009/091108.wvx
Faithfully,
DH
P.S. ...and then, there is this: http://www.clermontyellow.accountsupport.com/flash/UntilThen.swf - Amen.
Ramras Sees Bullet Line/AGIA Conflict - NOAA/White House Conspiracy Against OCS Energy? - Western Legislators Question Salazar Energy Motives
ADN. State Rep. Jay Ramras (NGP Photo), R-Fairbanks, said he plans to seek a legal analysis to determine if the Alaska Gasline Inducement Act of 2007 -- designed to spur North Slope natural gas development -- could thwart construction of a small-scale, in-state natural gas pipeline. Two years ago, the state signed contracts to help pipeline company TransCanada Corp. begin building a large natural gas pipeline. The act commits the state to work only with TransCanada, and Ramras questioned the penalty Alaska might face if it uses financial incentives to back a competing project. "The administration states again and again that the path forward is through the AGIA model," Ramras said. "But there are significant unanswered questions and Alaskans deserve concrete answers." State natural gas specialists have identified limited scenarios where the penalty would be triggered. If, for example, an in-state project sends less than 500 million cubic feet per day through a pipeline, or if it gets gas from somewhere other than the North Slope, the state is safe from penalty.
Washington Examiner by Mark Tapscott. Urban zoning in cities and suburbs divides land up into bite-size parcels and typically makes their use and development dependent upon securing approval from multiple levels of planning bureaucrats in government. But imagine if government tried to apply the same nghtmarish process to the ocean floor. Sound outlandish? Don't bet on it. National Oceanic and Atmospheric Administration (NOAA) administrator Jane Lubchenco is working with the White House Council on Environmental Quality (CEQ) on just such a plan, according to WhatAboutAlaska.com. The plan would seek to impose on 1.76 bilion acres of the American Outer Continental Shelf (OCS) the same sort of block-by-block bureaucratic controls that environmentalists and others have used for years to stifle development on land. (See our earlier comment: Death by a thousand cuts....")
NY Times by NOELLE STRAUB of Greenwire. ...a way for the Obama administration to implement regulations while Congress continues to debate global climate change legislation. Bishop said Salazar is "bypassing the congressional approval process." "By moving forward without the passage of a climate change bill passed in Congress, you are creating a number of unanswered questions," the lawmakers wrote in a letter to Salazar. "These questions include, but are not limited to, how this initiative will place strains on the current DOI bureaucracy, how land use planners on the ground will implement this order, and what mechanisms will provide transparency in your department....."
No Time For Gas Pipeline Bullet Line - Does Gas Shale Threaten Northern Gas? - Mac Gas Still Needed!
ADN Editorial. This year, the Legislature and then-Gov. Sarah Palin funded a comprehensive study of in-state gas issues, including the feasibility of a bullet line. "The state is really leading that effort now," though Enstar is participating in it, says John Sims, the company's director of corporate communications. "Enstar has shifted our focus to our short term strategy. We have needs that have to be met in 2011, and obviously there's no way a bullet line would meet those needs." There are good reasons talk about the bullet line has quieted down, according to Marty Rutherford (NGP Photo) and Mark Myers, two of state government's most knowledgeable oil and gas experts. Both are high-ranking officials at the Department of Natural Resources. Both quit Gov. Frank Murkowski's administration....
Northern Pipelines Blog by Brett Chandler. Interesting, the skepticism that seems to be bubbling to the surface about shale gas plays. A few more interesting links can be found on AK Engineer's blog, too. The bottom line here is that shale gas is more expensive to find and produce than conventional gas, and that the wells may not stay productive very long.
Denali Gas Pipeline's Fackrell Addresses Alaska (audio) - Turning now back to 'climate change' legislation....
KSKA. Soon after BP and ConocoPhillips announced plans to combine resources to start Denali – The Alaska Gas Pipeline in April 2008, Bud Fackrell (NGP Photo) was appointed president of the project, which would eventually ship 4 billion cubic feet of natural gas a day from the North Slope to the Lower 48, Alaska and Canada. His talk, “Denali – an update on the Alaska gas pipeline project: a world class effort with global implications” was recorded on Friday October 30th at the Alaska World Affairs Council.
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Politico reports, “While Sen. Barbara Boxer was celebrating her committee’s passage of a sweeping climate change
bill Thursday, other Democrats and Republicans were already looking for a Plan B. “It dooms that particular legislation. The question is what comes next,” said Alaska Republican Sen. Lisa Murkowski (NGP Photo). “We will see what Plan B is.” Graham said his group would take the “good pieces” of the work by Boxer and the five other committees.” * FitsNews reports, “Last week, FITS published an in-depth report about how liberal special interests were the real driving force behind a new “conservative” advertising campaign aimed at protecting embattled U.S. Sen. Lindsey Graham. * The Washington Post reports, “Now, some groups have muted their alarms about wildfires, shrinking glaciers and rising seas. Not because they've stopped caring about them -- but because they're trying to win over people who might care more about a climate bill's non-environmental side benefits, such as "green" jobs and reduced oil imports. Instead, one spot from the EDF shows solar panels and windmills, while an announcer talks about jobs and a reduced dependence on foreign oil. "We need more renewable energy that's made in America and works for America, creating 1.7 million jobs," the narrator says. The spot doesn't mention the word "climate" and instead talks about cutting "carbon pollution," using a phrase common in recent ads by several groups.” * The Cascade Policy Institute’s Todd Wynn writes this in the Statesman (OR) Journal, “Because a cap-and-trade program is essentially an energy tax, the program would have an enormous effect on Americans by increasing the costs of almost everything that is needed or desired in our daily lives. Unfortunately, the majority of Americans do not have a clue about what a cap-and-trade program actually is and thus are unable to voice their possible concerns.”
Will The Cumulative Weight of the Government-Environmental-Legal Complex Out Weigh Shell's Patience?
ADN by Elizabeth Bluemink (NGP Photo). Scientists say Alaska's Arctic waters could hide a massive storehouse for oil and natural gas, estimated to nearly rival the onshore discoveries of the North Slope. Betting on that, Shell two years ago spent more than $2 billion to obtain leases in the two seas and mobilized hundreds of millions of dollars' worth of equipment to Alaska.
Alaska Gas Pipeline Coordinator Issues Report - Mackenzie May Be Down But It's Not Out
Alaska Gas Pipeline Coordinator, Mark Meyers (NGP Photo), issued a report documenting status of projects. Here is
his cover letter and here is his full report.
See ADN story by Elizabeth Bluemink. The Alaska Department of Natural Resources on Tuesday issued a 51-page report detailing work so far by TransCanada Corp. and Exxon Mobil, the two companies attempting to develop the pipeline under a state license, which requires the state to reimburse up to $500 million of the cost of the multibillion-dollar project. The two companies now have 100 people working full-time on the project and have hired 24 Alaska firms as contractors. State officials and consultants are flying twice a month to Canada and Texas to monitor the companies' work. Also, TransCanada has purchased office space in Midtown, the report said.
Calgary Herald, by Shaun Polczer. Mackenzie Valley proponents were still clinging to the dream of an Arctic gas pipeline on Tuesday even as signals from Ottawa seemed to herald its imminent demise.