Petroleum News Alaska by Eric Lidji (NGP Photo). The public corporation of the state is currently conducting due diligence to determine whether it should build, own and operate a 4.5-mile access road connecting the existing Tarn road to the Mustang field, as well as a production pad at the development site. After announcing a 40 million barrel discovery earlier this year, the small independent Brooks Range Petroleum Corp. is working to bring the Mustang field online by 2014.
Your Alaska Link hosts Doreen Lorenz and Mark Colveccio interview Dan Fauske (NGP Photo), CEO of the Alaska Gasline Development Authority (AGDC), also referred to as the As Soon As Possible (ASAP) project. See video:
Petroleum News Alaska by Eric Lidji. Almost a decade after regulators gave the utility permission to set its rates at will, an economist representing the state Attorney General’s office believes state regulators should once again subject Fairbanks Natural Gas LLC to traditional rate regulation. “The rationale for FNG’s economic exemption is negated by its pricing behavior,” economist Christina Klein wrote in testimony to the Regulatory Commission of Alaska.
Yesterday, U.S. Sen. Lisa Murkowski, R-Alaska commented on the peer review of the Environmental Protection Agency’s assessment of theBristol Bay watershed. The document summarizes the three-day peer review meeting in Anchorage in August.
Canadian Press. As Kinder Morgan launches a series of information sessions in the Metro Vancouver area about the proposed expansion of its Trans Mountain pipeline, city officials are exploring whether Vancouver can force the Texas-based company to increase its liability coverage in kind.
The Alaska House of Representatives announced its new organization: The Alaska House Majority Caucus has organized for the 28th Alaska Legislature. Representative Mike Chenault (NGP Photo) , R-Nikiski, returns for a third term as House Speaker. Representative Lance Pruitt, R-Anchorage is the new Majority Leader, and Representative Craig Johnson, R-Anchorage, returns as Rules Chair. Representatives Bill Stoltze, R-Mat-Su/Chugiak, & Alan Austerman, R-Kodiak, are the co-chairs of the House Finance Committee. "I am grateful for the opportunity to return as Speaker," Chenault said. "The gavel comes with a tremendous amount of responsibility, and I am confident we will continue to respect and uphold the tradition and powers of the Speaker's Office and Alaska State House." "We welcome five new members to caucus, and are eager to continue relationship building and educating each other prior to the start of session," Pruitt said. "We will continue focusing on key issues – oil tax reform, affordable energy, quality education, public safety, and responsible investments – and are looking forward to working with the new Senate leadership and Governor to finally push Alaska forward."
Alaska Journal of Commerce by Becky Bohrer, AP. Republicans on Wednesday wasted no time in claiming control of the Alaska Senate, one day after winning a majority of seats in the chamber. ... The majority's three areas of concern will be increasing oil production, getting affordable energy to Alaskans and developing sustainable capital and operating budgets for "current and future generations."
The Telegraph by Sean Cockerham and Kyle Hopkins. President Barack Obama lost the Alaska vote Tuesday in a landslide and Gov. Sean Parnell has been openly hostile toward him, but now the state’s leaders have no choice than to accept that a majority of the rest of the nation wants Obama as president. More than 60 percent of Alaska is federal land, and the decisions Obama makes over the next four years are going to shape the development of the state.
Calgary Herald, by James Wood. As Canadian political and business leaders expressed optimism the proposed Keystone XL pipeline will win approval under a re-elected President Barack Obama, environmental opponents and the U.S. ambassador to Canada cautioned the energy megaproject isn’t a slam dunk.
ADN?AP by Dan Joling. The state of Alaska's annual North Slope petroleum lease sale earned $14.2 million Wednesday. That was down from $21 million last year, but Division of Oil and Gas Director Bill Barron (NGP Photo) saw reason for optimism. The sale was the fourth largest by dollar amount since the state began area-wide lease sales in 1998, covering tracts on the North Slope, in near-shore waters of the Beaufort Sea, and in the North Slope Foothills. The sale attracted interest from major oil companies, independents and new faces. "Any activity, especially from the major players and some of the minor players, is good for the state," Barron said after opening bids.
From Josh Wilson (NGP Photo), Commonwealth North. Thank you again to Colleen Starring (NGP Photo) for her excellent presentation at our meeting last week. Her PowerPoint presentation is now available on the Commonwealth North website.
12-1pm, Dena'ina Center
Calgary Herald. Mexican authorities have awarded TransCanada Corp. (TSX:TRP) another natural gas pipeline contract. The Calgary-based company said Monday that it will invest about US$400 million in a 413-kilometre pipeline between El Oro and Mazatlan, near Mexico's west coast.
Thoughts on Alaska Oil and Gas, by Brad Keithley. Rare unanimity of opinion: Vote No on Bonding Proposition A | "Think about it. When have the editorial pages of the Anchorage Daily News and the Anchorage Daily Planet, not to mention Dermot Cole and the Anchorage Daily Planet, ever agreed on anything. The fact that they have on this issue is meaningful. The Fairbanks News Miner seals the deal. Vote No on Bonding Proposition A.
Alan Bailey (NGP Photo) of Petroleum News provided a thorough summary of the current Southcentral Alaska gas supply outlook--and the outlook is daunting. We predicted this situation in 2006 while there was a wonderful window of opportunity for securing all necessary firm gas supplies through 2016.
As to the current status, Bailey quotes a number of experts in his article, including Enstar's Colleen Starring (NGO Photo). -dh
Enstar Natural Gas Co., the main Southcentral gas utility, now depends on CINGSA gas to meet its winter needs. Colleen Starring, president of Enstar, told the commission that with 91 million cubic feet per day of deliverability contracted with CINGSA, on top of the some 248 million cubic feet per day under contract with gas producers, Enstar anticipates having sufficient gas to meet demand during the coldest weather in the coming winter.
“With the addition of CINGSA … we’ll be able to meet all of the requirements,” Starring said.
For our Oil & Gas Journal subscribers:
ALASKA IN-STATE PIPELINE—1: STUDY CONFIRMS FEASIBILITY OF IN-STATE ALASKAN GAS PIPELINE ... Zhenhua Rui Independent Project Analysis Inc. USA Ashburn, Va. Construction of an Alaska in-state natural gas pipeline is feasible at any of three flow rate scenarios: 500 MMcfd, 750 MMcfd, and 1,000 MMcfd. Selection of a particular rate depends on specific conditions and perspectives, but the results of the study underlying this article show that building an Alaska in-state gas pipeline is reasonable for all three, assuming a 30-year operating life. This first in a two-part series of articles examines the factors influencing construction of an Alaskan in-state gas pipeline and the form such a project might eventually take. The second part will assess capital costs before discussing the m...
Calgary Herald by Kelly Cryderman. The public is still in the dark when it comes to the progress made and dollars spent on Alberta’s homegrown strategy to curb greenhouse gas emissions....
Alaska is engaging in double taxation of the Trans Alaska Pipeline (TAPS) via a property tax that causes assets to be depreciated more than once. In an analysis now appearing in the Journal of Legal Issues and Cases in Business, well known Alaska Economist Roger Marks (NGP Photo) noted that the current TAPS property tax burden results from a 2005 change in assessment methodology from an income to a cost approach. The cost approach produces a calculation of TAPS value based on "replacement cost"....(Read the analysis.) -dh
Alaska Dispatch by Suzanna Caldwell. Despite reports that Cook Inlet may be awash in natural gas, leading to a surge of interest by smaller oil-and-gas companies, utilities are now looking elsewhere to ensure supply meets Southcentral Alaska’s growing demand in the face of aging fields whose output has dwindled precipitously. As a result, the state with the biggest supply of natural gas of any in the union will, within two years, find itself importing the very quantity of gas it has for decades intended to ship overseas or to the Lower 48 to secure its economic future.
Peninsula Clarion Op-Ed by Cathy Giessel (NGP Photo). We urge our readers to review this Commentary by a person we regard as one of the most exceptional individuals to have ever served in the Alaska State Senate. -dh
Alaska State Legislature
"2012 Election Wrap-Up"
When: Thursday, November 8th
Doors open at 6 a.m., program at 7 a.m.
$20 per person
• November 2 - Colleen Starring, President, ENSTAR
• November 9 - Larry Persily, Federal Coordinator, Alaska Natural Gas Transportation Projects
• December 7 - John Barnes, Senior Vice President, Exploration & Production, Hilcorp Alaska, LLC
• December 14 - Lisa Parker, Government Relations Manager, Apache
Commentary: Yesterday, you read here first the combined position on the National Petroleum Reserve-Alaska issued by the North Slope Borough (NSB) and the Arctic Slope Regional Corporation. We mention it again today, adding our appreciation to NSB Mayor's Special Assistant David (DJ) Fauske (NGP Photo). We are confident that the statement is not only the most concise, balanced and decisive energy policy comment from Arctic leaders in recent decades, but that it is also a courageous act of leadership benefitting NSB residents and all Alaska citizens. -dh