2013 Archives
5-22-13 Notes From the Road (Quito)
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Support Tax Reform Law!
From our friends at the Resource Development Council for Alaska (RDC).
"...there is currently a signature gathering referendum effort taking place to repeal SB21, the oil tax reform bill signed in to law by Governor Parnell.
In an effort to give the thoroughly vetted new tax structure time to work, the Alaska Support Industry Alliance is using its independent expenditure group, "We Are Alaska," to run a campaign educating Alaskans on what SB21 has accomplished and explaining why signing the referendum could be extremely harmful for the future of Alaska.
RDC and other business associations across the state support the new tax regime, the More Alaska Production Act (MAP Act), and have a high level of confidence that it will result in new investment, production, jobs, and revenues to fund education and a wide range of public services.
To learn more, visit the We Are Alaska website and be sure to like them on Facebook, as well as Twitter.
Alaska's contribution to the nation's energy supply has been in decline since the 1980's.
While the resource is there to stem the decline, and perhaps even reverse the trend, Alaska's investment climate has been unfriendly to attract the major investment dollars needed to do so.
After extensive review, analysis, and research, Governor Sean Parnell and the Alaska Legislature passed SB 21 to reform our tax system to make it more competitive. It will help will help invigorate Alaska's energy production and bring jobs and investment to our state.
Don't let a small minority take us two steps back when it comes to Alaskan jobs and competitiveness. Show your support for Senate Bill 21 and the Alaskan economy.
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The Federal Government Has Broken Its Word Many Times As It Has Sapped Sovereignty From America's States
Earlier this week at an IOGCC (Interstate Oil and Gas Compact Commission) meeting in Alabama, Utah Representative Roger Barrus (NGP Photo coming) provided the nation's oil and gas conservation commissioners with a history lesson.
Both before and after the constitution was enacted, Barrus said, the founders made it clear that the states were to manage state resources.
He noted that (More coming....)
5-21-13 - Notes from the road....
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Governor Sean Parnell (NGP Photo) announced an exploration proposal for the state to finance development of the Arctic National Wildlife Refuge (ANWR) 1002 Area, that the Congress designated for oil and gas development.
 a“Accurately defining the oil and gas resource potential is a critical part of understanding the value of the 1002 Area to the nation,” Governor Parnell said. “The federal government has the responsibility to do this under federal law, but is clearly reluctant to do so. Therefore, we are stepping forward with our expertise and financing to provide a detailed resource evaluation and exploration proposal.”Parnell outlined the proposal in a letter sent to Interior Secretary Sally Jewell, and he and Department of Natural Resources Commissioner Dan Sullivan rolled out the 187-page document during a press event at the U.S. Chamber of Commerce headquarters in Washington, D.C.
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5-20-13 - Notes From the Road
(Note from the road: meeting with members of the Interstate Oil and Gas Compact Commission Today, Point Clear, Ala. -dh)
Fairbanks News Miner by Dermot Cole. The eventual cost to the consumer and the number of new consumers who would be able to hook up to natural gas are key questions for the Regulatory Commission of Alaska as it decides which entity will be allowed to serve portions of the Fairbanks area beyond the current Fairbanks Natural Gas service area.
Oil and Gas Journal, by Nick Snow. The US Department of Energy conditionally approved Freeport LNG’s request to export domestically produced LNG from its Quintana Island, Tex., terminal to countries that do not have a free trade agreement with the US.
Petroleum News: ConocoPhillips Alaska Inc. expects to bring its Shark Tooth satellite online by late 2015.
Petroleum News: Fueled by growth in situ development and production in its oil sands, Alberta posted a 14 percent rise in conventional oil production in 2012, a 10 percent jump in crude bitumen output and a 9.5 percent increase in reserves, intensifying the challenge of how to get those volumes to market.
5-17-13 On The Road...From Seattle
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ADN by Lisa Demer. The group "We Are Alaska" is coming out against the referendum with radio ads, a Facebook page and Twitter feed. It is being funded by the Alaska Support Industry Alliance. The Alliance is a trade organization with some 500 member groups that support the oil industry and employ people such as engineers, drillers and electricians, but also bankers, caterers and educators. The career and technical education department of the Anchorage School District is listed as an Alliance member, for instance. There are now organized efforts on both sides of the emerging ballot battle. "It's to provide the other side of the story," Alliance general manager Rebecca Logan (NGP Photo) said -- that many jobs and much government spending in Alaska stems from oil revenue. (We respect and support both the courage of this organization and its investment climate position. -dh)
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Gitga'at Evict Pipeliners, Canadian Press. Members of the Gitga'at Nation say they have evicted a Northern Gateway Pipelines crew from their territory on the north coast of British Columbia as it tried to conduct oil spill response surveys. The small First Nation of Hartley Bay says the crew showed up to carry out work on the project that has not been approved, and that the Gitga'at continue to oppose. Coun. Marven Robinson said the band received a fax informing them that the crew would be coming to conduct an oil spill response survey. |
Respect is Key to Aboriginal Support for Gateway Pipeline, Globe and Mail
by Brian Lee Crowley.
Contrary to what regular readers of newspapers might believe, aboriginal communities in Canada are not knee-jerk opponents of development. On the contrary, a careful reading of their recent responses to development proposals gives reason for optimism. Perhaps the highest-profile example of a major natural resource project facing roadblocks in large part because of aboriginal opposition is the Northern Gateway pipeline to link Alberta’s oil sands to Asian markets through the West Coast. While other players (such as the B.C. government) matter too, without aboriginal support, Northern Gateway (or its equivalent) almost certainly will not succeed. With that support, it has a fighting chance. Can that support be achieved?
5-16-13
Fairbanks News Miner. Congressman Don Young (NGP Photo) has filed legislation that would toss out the recently completed manag ement plan for the National Petroleum Reserve-Alaska.... The bill, HR1964, would nullify a plan adopted by the U.S. Department of the Interior’s Bureau of Land Management in February, Young said. The plan administratively withdrew about half the reserve from oil and gas leasing. (See more on this story below.) |
Alaska Dispatch by Pat Forgey. "We're in a process of 
evaluating how we want to adjust the capital program," says Matt Fox, ConocoPhillip's executive vice president for exploration and development. "I'd like to see us adjust the capital program so we can completely arrest the decline in production in Alaska, or even turn it around."
Next Wednesday, May 22nd, the House Natural Resources Subcommittee on Energy and Mineral Resources will hold a legislative hearing on four bills to protect and expand onshore energy production on federal lands in Alaska and elsewhere.
Subcommittee Hearing Notice - May 15, 2013 - Read more below:
H.R. 555 (Johnson, OH), To amend the Mineral Leasing Act to authorize the Secretary of the Interior to conduct onshore oil and gas lease sales through Internet-based live lease sales, and for other purposes, “BLM Live Internet Auctions Act.”
Our friend, Steve Borrell urges us to review this Fuel Fix article describing 'unequal treatment under the law'. It is a good preamble to the notes below. -dh
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Banghazi, IRS, AP: Government is the Problem
by Nick Adams
America is in debt.
Most notably, it owes its remarkable exceptionalism and the durability of its experiment to the men who founded it.
With a penetrating prescience, these men grasped better than any before them the true nature of man, and the circumstances under which he flourishes. Where every other Constitution in the world stipulates the rights of government, the American declares the rights of the individual.
Limited government is an American value.
Sadly, the greatest nation in the world has drifted from the spirit of that hallowed document, its authors and this exceptional value.
Countless administrations and agencies evidence a massively expanding federal government.
And this week, a trifecta of problems promptly arrives: Benghazi, IRS persecution and AP records seizure.
More salient examples of precisely what the founders of the magnificent America dreaded and insulated against cannot be conceived.
No citizen should fear any portion of the government in a healthy republic. No arm of government should be a weapon of intimidation or political retribution. And yet the IRS under Kennedy, Nixon, Johnson, Obama and possibly others has served not just as the pipeline of wealth distribution, but also for these exact nefarious purposes.
The matter of Benghazi is deeply perturbing. One thing has always been true about America: it never leaves one of its own behind. It is a message steeped in military code that has been reinforced ceaselessly in history and popular culture. Yet increasingly it appears this may well have happened on September 11, 2012.
Ambassador Stevens, Sean Smith, Glen Doherty, and Tyrone Woods deserve justice, as do the American people.
More information on the legal basis must emerge before we can render a judgment on the Department of Justice (DOJ) seizure of AP record logs, but the threats the action poses to a free press and the newsgathering process are alarmingly clear.
This ‘scandal’ trio has the press corps in a lather not seen since the George W Bush administration.
Suddenly they find their skepticism dissipating; their backsides on the very same bleachers as conservatives. Suddenly, they understand, at least momentarily, what the fuss has been about. But it’s not enough. It’s shameful. For too long, the mainstream media has protected and disseminated liberal ideology to the detriment of the nation. Reporting on the Boston terror attack, and Benghazi prior to the emergence of whistleblowers and clear changes to talking points, by major US media, unmistakably revealed their automatic assumption: American guilt. Nothing could be more pernicious than this mindset; nothing more offensive or contrary to the American narrative.
In just days, voices that for years were derided and traduced were vindicated and recognized as visionary. Those voices had, and have, a prescience America’s founders would be proud of; they were, and remain, in keeping with a tradition of exceptionalism. Social reform to the limited government value of America will lead to its evolution to the moribund mediocrity of a European state.
At the commencement speech to the graduating class of Ohio State less than a fortnight ago, President Obama made the following observation:
“Unfortunately, you’ve grown up hearing voices that incessantly warn of government as nothing more than some separate, sinister entity that’s at the root of all our problems.
"Some of these same voices also do their best to gum up the works. They’ll warn that tyranny always lurking just around the corner. You should reject these voices. Because what they suggest is that our brave, and creative, and unique experiment in self-rule is somehow just a sham with which we can’t be trusted.”
Under the menacing shadows of Benghazi, the IRS and the AP, these words now return to haunt him.
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“Approval of this legislation by the Committee is important to finalizing this agreement and expanding American energy production. This bill would create jobs, lower energy prices by increasing our domestic supply, generate new federal revenue to help lower the debt and strengthen our economy, and make America more energy secure by opening up new areas in the Gulf of Mexico to exploration and development. In addition, this important legislation would lay the framework for transboundary agreements with other nations that will allow America to fully utilize its shared natural energy reserves.” said Natural Resources Committee Chairman Doc Hastings (NGP Photo).Rigzone: Washington Must Find a Way to Say 'Yes' to Offshore Exploration
5-15-13
| The public service goal of Northern Gas Pipeline is to educate. Will you join us as a Public Service Sponsor or Stakeholder? -dh |
ELECTED OFFICIALS EVERYWHERE, LISTEN! Calgary Herald by Eric Pedersen. The hard lesson of "be careful what you wish for, as you may just get it," has been learned by all the First Nations people along the route of the Mackenzie Valley pipeline. More than 20 years later, it is still not built, and now, with low gas prices, it will never be built. All the economic benefits have been lost forever. The people of the Mackenzie Delta and Mackenzie Valley are in hindsight wishing there was gas flowing down a pipeline. Your short-term thinking will strangle your young people's future.
The Columbus, Indiana Republic reported last night that 
Governor Sean Parnell (NGP Photo) is in New York talking with rating agencies and banks about, "Alaska's Budget and Economic Outlook". We visited for two days with dozens of these NYC analysts and rating agencies six years ago. We answered a thousand questions about Alaska's budget, gas pipeline and oil and gas issues. Several dozen of those analysts and several score regulators are still NGP readers. We believe the Governor will find a highly astute and educated audience among the City's financial community. -dh
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State Legislators Support Congressional Efforts to Protect State Revenues From “theft” of $110 Million By Federal Overreach.
Late yesterday we received |
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a statement from leaders of the NPR-A Targeted As U.S. House Acts to Create Jobs, Reduce Prices, Grow Economy
WASHINGTON, D.C., May 15, 2013 - Members of the House Natural Resources Committee introduced two bills to protect and expand U.S. onshore energy production on federal lands. The bills would remove government roadblocks and hurdles that delay American energy production, promote production of our oil shale resources, and ensure that oil and natural gas resources in the National Petroleum Reserve-Alaska (NPR-A) are developed and transported in a timely, efficient manner.
contain incredible potential for energy production, job creation, and economic growth. Yet federal red-tape and regulations imposed by the Obama Administration are keeping these resources under tight lock-and-key,” said House Natural Resources Committee Chairman Doc Hastings (NGP Photo). “These bills will help protect our oil and natural gas resources from onerous, duplicative federal regulatory hurdles and streamline the process so that energy production on federal lands can be as successful on private and state lands.”
The National Petroleum Reserve Alaska Access Act (H.R. 1964), introduced by Chairman Hastings and Rep. Don Young (NGP Photo) would cut through bureaucratic red tape to unlock the full potential of energy resources in the NPR-A by ensuring that oil and natural gas are developed and transported in a timely and efficient manner. 5-14-13
Senator John Barrasso of Wyoming supports free trade and freedom to export LNG, an issue critical to the future of Alaska gas pipelines. -dh
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Ocean Policy: Obama's End Run Around Congress and The Constitution. We began alerting readers to the White House move to zone the oceans and further restrict freedom of citizens four years ago and have added more details since then. We applaud Representative Millett's current observations, expressed here. When our readers click to the actual article and scroll down to the comment section they will be astounded. As knowledgeable observers, our readers will at once recognize the illiteracy of commenters and their mean spirits. One's instinct could well lead to a conclusion that the commenters are recruits from environmental activist cells and graduates of the George Soros School of Propaganda. We have seen similar comment treatment given to other legislators who provide logical, important reaction to overreaching government activity. We lament that news media blogs perpetuate this nasty behavior and constant ad hominem criticism by allowing commenters to remain anonymous. If news media wanted truly thoughtful commentary, they would require proper commenter identification. Until then, we can only offer our own appreciation to Representative Millett on behalf of our own loyal, well-studied and well-behaved readers. -dh |
ADN Op-Ed by Rep. Charisse Millett (NGP Photo).
Alaskans today have tremendous potential opportunities that 
can provide lasting benefits for decades to come. Plentiful energy and mineral resources, new Arctic shipping lanes, vibrant fisheries, and a bustling tourism industry are but a few of the areas that could all combine to usher in a new era of unprecedented economic and societal prosperity for the people of Alaska and beyond. Unfortunately, prospects for this bright future could potentially be delayed if not derailed as a result of President Obama's issuance of the July 2010 National Ocean Policy Executive Order and the recently-released National Ocean Policy Final Implementation Plan.
5-13-13
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Regarding our Alaska Mining Day coverage and comment last Friday, we received this thoughtful note from reader, Paul Richards. -dh
Mining is a major part of Alaska's history that brought major exploration and jobs to the State and along with the men and women who stayed to make Alaska a success. Do you remember our Fairbanks University was originally established in 1917 as Alaska Agricultural College and School of Mines? Thanks for all you do in getting the word out about Oil, Gas, Mining, and other job created industries. Paul |
Ziff Energy and Gas Processing Management announce the start of a 190+ page North Montney and Shale Gas Growth Resource and Infrastructure Study analyzing the area from west of Fort St. John to the Yukon and Northwest Territories including the Horn River, Liard, and Cordova Shale Gas Basins; forecasting gas and liquids to 2023 with the gas potentially being an important feedstock for Western Canada LNG Development.
The Study assesses the impact that the developing production will have on 30 sweet and sour gas processing plants including: Cabin, Caribou, Chinchaga, Farrell Creek, Fort Nelson, Jedney, Rainbow, Sierra, Wildboy, and Zama.
PEICE - Petroleum Institute for Continuing Education
Introduction to the Upstream Petroleum Industry
May 14-15 2013, Houston, 2 day, Fee: $1695 USD Register / More Information
Introduction to Energy Trading and Hedging
May 16-17 2013, Calgary, 2 day, Fee: $1895 CAD Register / More Information
Introduction to Petroleum Refinery Processing (3 Day)
May 20-22 2013, London, 3 day, Fee: $3195 USD Register / More Information
Introduction to Drilling
May 22-23 2013, Calgary, 2 day, Fee: $1795 CAD Register / More Information
Workplace Wisdom for Bringing Out the Best in Others
May 23 2013, Live Online Seminar, 1 Hour, Fee: $95 USD Register / More Information
Fundamentals of Directional Drilling
May 29-31 2013, Houston, 3 day, Fee: $2195 USD Register / More Information
SCADA Systems and Industrial Networks for The Petroleum Industry
May 29-31 2013, Calgary, 3 day, Fee: $2395 CAD Register / More Information
Fundamentals of Natural Gas Marketing
June 05 2013, Calgary, 1 day, Fee: $795 CAD Register / More Information
Canada's Oil Sands Industry: An Overview
June 05 2013, Live Online Seminar, 2 Hour, Fee: $195 USD Register / More Information
Natural Gas Rotary Compressors
June 06 2013, Calgary, 1 day, Fee: $795 CAD Register / More Information
Introduction to the Upstream Petroleum Industry
June 10-11 2013, London, 2 day, Fee: $2395 USD Register / More Information
Introduction to Drilling and Completions Fluids
June 11-13 2013, Houston, 3 day, Fee: $2595 USD Register / More Information
Introduction to Hydraulic Fracturing for Shale Reservoirs
June 11 2013, London, 1 day, Fee: $1295 USD Register / More Information
Introduction to Shale Oil and Gas
June 12 2013, London, 1 day, Fee: $1195 USD Register / More Information
Natural Gas Reciprocating Compressors
June 17-18 2013, Calgary, 2 day, Fee: $1695 CAD Register / More Information
Geology for Non-Geologists
June 17-20 2013, Calgary, 4 day, Fee: $3295 CAD Register / More Information
Introduction to ASME B31.3 Process Piping Code
June 18-19 2013, Calgary, 2 day, Fee: $1695 CAD Register / More Information
Introduction to Petroleum Refinery Processing (2 Day)
June 19-20 2013, Houston, 2 day, Fee: $1795 USD Register / More Information
Workplace Wisdom for Confronting People Without Making Things Worse
June 20 2013, Live Online Seminar, 2 Hour, Fee: $195 USD Register / More Information
Fundamentals of Petroleum Refinery Economics
June 21 2013, Houston, 1 day, Fee: $795 USD Register / More Information
Introduction to the Upstream Petroleum Industry
June 24-25 2013, Calgary, 2 day, Fee: $1695 CAD Register / More Information
Leadership Skills for Supervisors
June 24-25 2013, Denver, 2 day, Fee: $1795 USD Register / More Information
Fundamentals of Well Completions
June 24-26 2013, London, 3 day, Fee: $3295 USD Register / More Information
Petroleum Engineering for Non-Engineers
June 24-28 2013, Houston, 5 day, Fee: $3695 USD Register / More Information
CSA Z662 Oil and Gas Pipeline Systems Code
June 25-26 2013, Calgary, 2 day, Fee: $1695 CAD Register / More Information
Introduction to Offshore Drilling
June 26-27 2013, London, 2 day, Fee: $2595 USD Register / More Information
Leadership Skills for Supervisors
June 27-28 2013, Pittsburgh, 2 day, Fee: $1795 USD Register / More Information
Exploration Data Contouring, Mapping and Interpretation
July 03-04 2013, Calgary, 2 day, Fee: $1895 CAD Register / More Information
Petroleum Engineering for Non-Engineers
July 08-12 2013, Denver, 5 day, Fee: $3695 USD Register / More Information
Geology for Non-Geologists
July 08-11 2013, Houston, 4 day, Fee: $3295 USD Register / More Information
Introduction to Natural Gas Gathering and Processing
July 15-16 2013, Calgary, 2 day, Fee: $1595 CAD Register / More Information
Petroleum Engineering for Non-Engineers
July 15-19 2013, Calgary, 5 day, Fee: $3695 CAD Register / More Information
Introduction to the Canadian Oil Sands
July 16-17 2013, Calgary, 2 day, Fee: $1895 CAD Register / More Information
Introduction to Crude Oil Gathering and Processing
July 17-18 2013, Calgary, 2 day, Fee: $1595 CAD Register / More Information
Fundamentals of Artificial Lift Systems
July 17-19 2013, Calgary, 3 day, Fee: $2495 CAD Register / More Information
Leadership Skills for Supervisors
July 22-23 2013, Houston, 2 day, Fee: $1795 USD Register / More Information
Economic Fundamentals of the Petroleum Industry
July 22-24 2013, Calgary, 3 day, Fee: $2695 CAD Register / More Information
Geology for Non-Geologists
July 29-01 2013, Denver, 4 day, Fee: $3295 USD Register / More Information
Shale Development and Shale Fracturing Fundamentals
July 29-30 2013, Houston, 2 day, Fee: $1895 USD Register / More Information
Leadership Skills for Supervisors
July 30-31 2013, Calgary, 2 day, Fee: $1795 CAD Register / More Information
Well Test Analysis Workshop
July 30-02 2013, London, 4 day, Fee: $4495 USD Register / More Information
Shale Development and Shale Fracturing Fundamentals
August 05-06 2013, Denver, 2 day, Fee: $1895 USD Register / More Information
5-12-13
Calgary Herald by Stephen Ewart. When Alberta's oil and gas regulator this week forecast oilsands production would double to 3.8 million barrels a day in less than 10 years, the rosy outlook ignored the potential for opponents to burst the province's bubble. With pipeline proposals from Keystone XL to Northern Gateway facing unprecedented hostility - even as North America's vast pipeline network struggles to keep pace with fast-growing production - there's greater risk the infrastructure will not be there to move Alberta's oil to customers in a timely or efficient manner.
