Petroleum News by Alan Bailey (NGP Photo). On July 22 the federal Bureau of Safety and Environmental Enforcement issued permits allowing Shell to drill the top hole sections of two wells in the Burger prospect in the Chukchi Sea. Shell now has all of the permits that it needs to start drilling. However, BSEE is prohibiting Shell from drilling into hydrocarbon bearing zones until....
7-24-15 Northern Pipelines, Economies, Alaska Native and Canadian Aboriginal People Are Interdependent
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Northern Pipelines, Economies, Alaska Native and Canadian Aboriginal People Are Interdependent
Alaska Natives, Canadian Aboriginals and Northern economies depend on oil and gas development and the transportation systems moving the resources to market.
Transportation systems like pipelines require rights of way. Rights of way and subsistence hunting and fishing and agricultural areas very often overlap proposed pipeline routes.
All stakeholders care about the safety of pipeline operations. For sure, all stakeholders wish to maximize their own income streams. Without access to natural resources, natural resource companies cannot survive.
Without the revenue provided by natural resource companies, rural, regional and even national economies would have difficulty sustaining their citizens' ways of life. We could think of this economic cycle of life as, "mutually assured sustainability".
Some legal gladiators, like environmental groups, however, may have multiple goals of minimizing ecological effects of (or flat out stopping) development, fund raising, member recruitment and crisis management as a key to attracting new and greater levels of contributions.
However, one should carefully note that the total disapproval of a project that environmental activists oppose may enrich their far-away NGO coffers while impoverishing citizen stakeholders in all directly affected rural, regional and national economies.
This excellent Calgary Herald story by James Wood demonstrates the a laudable appreciation of both developers and traditional peoples to create sustainable models of cooperation and development.
In Alaska, we are encouraged by Alaska Native Corporation relationships with Shell's Arctic OCS program--and other natural resource projects. But, as above, we note that environmental activists seeking destruction of the project could seriously diminish the entire future economy of Alaska, with negative impacts, as well, on the national treasury and national security interests in the Arctic.
Calgary Herald by James Wood. The head of the Assembly of First Nations told a Calgary business crowd Wednesday the energy industry must do a better job on safety and protecting the environment if it wants to earn the trust of Canada’s aboriginal people.
Perry Bellegarde, speaking at a Calgary Chamber of Commerce luncheon, said First Nations are watching the recent spill of bitumen from a state-of-the-art Nexen pipeline south of Fort McMurray.
“They have the best technology in place. What happened? That shouldn’t happen,” said Bellegarde, who comes from the Black Bear First Nation ....
First Nation opposition has been a major factor in stalling Enbridge’s Northern Gateway pipeline proposed to connect Alberta’s oilsands to Kitimat, B.C., for shipment to Asia. Resistance by aboriginal groups could also hamper TransCanada Corp.’s proposed Energy East line to the Atlantic coast.
Bellegarde noted there is a vast difference of opinion among individual First Nations toward pipelines, with some interested in the economic potential of the projects and others fiercely opposed.
“If the industry can assure people there are systems in place — better systems — they will be more open to transportation, to the pipelines,” he said.
Bellegarde said the oilpatch needs to engage with indigenous people, suggesting a system in which resource companies must demonstrate their commitment to aboriginal economic development and employment before development permits are issued.
“We’re not opposed to development, but we want to make sure the footprint’s not like this,” he added, holding his arms wide.
Greg Stringham, vice-president with the Canadian Association of Petroleum Producers, was in attendance for Bellegarde’s speech at the Hyatt Regency and said it was “inspiring.”
Blaine Favel, another former FSIN chief who is now the executive chairman of Calgary-based One Earth Oil and Gas Inc., told the chamber crowd that “the old way of doing things can’t work anymore when it comes to energy issues.”
With files from Deborah Yedlin, Calgary Herald and The Canadian Press.
U.S. Sen. Lisa Murkowski, (NGP Photo), yesterday issued the following response to the Interior Department’s approval of two conditional permits to Shell to resume its exploratory drilling in Alaska’s Chukchi Sea:
“Today’s approval by the Department of Interior of the permits Shell needs to resume drilling in the Chukchi Sea is good news for Alaska and our country. However, it is not the final regulatory hurdle Shell faces and it is important that the agencies continue to work in good faith and in a timely fashion to complete the remaining regulatory requirements.
“With an estimated 25 percent of the world’s undiscovered conventional oil and gas resources and active exploration by countries like Russia, it’s critical that the United States set the standard for responsible development in the Arctic. America will only truly assume that role when it actively engages in developing its resources.
“My attention remains focused on ensuring exploration proceeds safely this season and that Alaskans benefit from the development of our resources through revenue sharing.”
"Investment In Arctic Is Paramount", by Anne Seneca, President, Consumer Energy Alliance-Alaska
Politico: House GOP launches fresh salvo at EPA on endangered species
By Elana Schor
House Natural Resources Committee Republicans say EPA is snubbing their request to testify next week on whether it abided by Endangered Species Act rules that the GOP hopes will provide a new weapon against the Obama administration’s power plant emissions rules.
The House Natural Resources Chairman Rob Bishop’s species protection probe began in the spring, when Fish and Wildlife Service Director Dan Ashe admitted that EPA had not sought FWS input on the upcoming climate regulations despite evidence that the expected retirement of a Florida coal-fired power plant would eliminate a warm water habitat for some manatees.
To view full story online:
Today's relevant energy links from Consumer Energy Alliance:
Norman Transcript: Industry official responds to oil and gas regs *Tommy Foltz Quoted
Consumer Energy Alliance Executive Vice President Tommy Foltz reacted to a decision by the Stillwater City Council this week to pass a new oil and gas ordinance that has been the subject of debate since January.
Tulsa Public Radio: New Stillwater Drilling Rules Also Being Questioned *Tommy Foltz Quoted
Stillwater imposes new rules on oil and gas drilling, but there are those who aren't sure it will meet the legal test under a new state law.
Tulsa Public Radio: Tulsa Morning News *Tommy Foltz Interview
Alaska Dispatch News: Investment in Arctic is paramount *Anne Seneca LTE
Shannyn Moore’s July 19 column on Shell’s offshore program was nonsensical gibberish. As Unalaska Mayor Shirley Marquardt commented to ADN after the incident: “So many things like this happen in the marine industry in Dutch Harbor and people just go, ‘Oh they were lucky.’ But when it’s Shell, people who have no marine experience whatsoever or have never been to Dutch Harbor say, ‘See they don’t know what they were doing.’ ” Moore’s litany was an unnecessary and incomprehensible diversion from a real and meaningful issue: the importance of increasing the nation’s investments in the Arctic.
Consumer Energy Alliance: Consumer Energy Alliance Welcomes New Member: West Virginia Oil and Natural Gas Association
Consumer Energy Alliance (CEA) is pleased to welcome the West Virginia Oil and Natural Gas Association (WVONGA) as its newest affiliate member. Chartered in 1915, WVONGA is one of the oldest trade organizations in the state, and is the only association that serves the entire oil and gas industry. The activities of its members include construction, environmental services, drilling, completion, gathering, transporting, distribution and processing.
Wall Street Journal: Western oil companies will face competition in Iran
European and U.S. oil-and-gas companies drawn to Iran as sanctions ebb can expect to encounter not only opportunities, but also capable Iranian companies offering tough competition or joint ventures.
Washington Times: Nonsensical 'fractivist' pipeline hysteria
The anti-fracking movement has moved beyond the realm of the petty and unseemly into the ridiculous. Led by Yoko Ono, the avant-garde artist and widow of musician John Lennon, fracktivists are trying to stop construction of pipelines that would carry natural gas from the Marcellus Shale region in Pennsylvania and West Virginia, and the Utica Shale region in Ohio to markets in New York and New England.
Washington Examiner: Obama climate pledge on 'very shaky legal ground,' critics say
Republicans and industry officials contended the Obama administration's climate pledge heading into global negotiations was on "very shaky legal ground"
Bloomberg: Oil Drillers Retreat from Shallow U.S. Gulf in Turn to Shale
Energy producers are retreating from the search for oil and natural gas close to shore in the U.S. Gulf of Mexico as drilling budgets shrink and exploration migrates to land-based shale fields.
Bloomberg: Glut of gas heading south as shale boom reaches Florida
A glut of cheap natural gas trapped in the U.S. Northeast will be heading south by the end of the year, radically changing the price differences between the regions.
Bloomberg: Analysts: Gas pipelines to shrink price gap between Northeast, Southeast
New pipeline capacity in the Northeast is expected to bring more natural gas from the Marcellus Shale play to the Southeast, prompting the price difference between the two regions to narrow over the next three years, analysts predict.
The Hill: First attempt to advance Senate highway bill falters
A Senate bill that would sell off a portion of the Strategic Petroleum Reserve to fund highway projects failed to advance . Another vote is expected today.
Sioux Falls Argus Leader: PUC: No new pipeline testimony on tribal stewardship
South Dakota utility regulators won’t allow testimony on tribal land stewardship next week in the latest round of Keystone XL pipeline hearings.
Aberdeen News: PUC sets final processes for TransCanada hearing
The state Public Utilities Commission rejected most of the limits that TransCanada wanted on opponents for the permit hearing next week on the Keystone XL oil pipeline.
Oil & Gas Journal: Study examines methane emissions from gas facilities
Natural gas transmission and storage facilities in the U.S. released 1,503 gigagrams per year of methane emissions, according to a Colorado State University study. The figure is 27% lower than a government estimate but statistically similar, according to the study.
Huffington Post: Dear Mr. President: Prove Your Climate Rhetoric and Stop Arctic Drilling
Dear Mr. President: I've often been struck by your soaring rhetoric on combating climate change, transitioning to clean energy sources, and protecting the natural environment. Clearly on some level you get it, as you've demonstrated in speech after speech. That's why I don't understand how you could even consider approving Shell's dangerous plan to drill for oil in the Arctic Ocean this summer — and why I'm imploring you to stop this reckless and short-sighted project.
E&E News: Crude exports not in House energy proposal
The House Energy and Commerce Committee introduced a bipartisan energy bill that did not include a repeal of the ban on crude exports. A subcommittee markup is planned for today.
Associated Press: Wilmington the latest to oppose offshore drilling
Wilmington has become the latest city in the Carolinas to oppose offshore drilling for oil.
Wilmington City Council voted unanimously to oppose both seismic testing to find oil and natural gas, and the actual drilling for oil off the North Carolina coast.
The Roanoke Times: Cutler: Industry attempting to bypass review procedures
“Now, think what might happen if (a) legislation under active consideration now by the U.S. Congress (H.R. 2295, S. 411, S. 1196) were to pass that gives the secretary of the Interior (instead of the Congress, as is currently the case) the power to issue oil and gas pipeline rights of way through national parks and (b) another person with Jim Watt’s world view were to be appointed secretary of the Interior?”
Akron Beacon Journal: Oil company mergers are down, federal agency reports - Drilling – Ohio
The second quarter of 2015 exhibited the largest amount of oil companies' merger and acquisition (M&A) activity by value since fourth-quarter 2012. The announced merger between Royal Dutch Shell and BG Group in early April accounted for $84 billion of the $115 billion quarterly total.
Oil & Gas Journal: Comment period on Colo. gas proposal extended
The Bureau of Land Management has given the public until to submit comments on a preliminary environmental assessment of Gunnison Energy and SG Interests' proposed natural gas project in Colorado. The project would entail up to 25 gas wells on five well pads.
Durango Herald: Colorado faces clean-air rule from EPA
A final rule from the Environmental Protection Agency is expected in the coming days, aimed at a 30-percent reduction in carbon-dioxide emissions nationwide by 2030. The proposal is state-based, with a target of 35 percent proposed for Colorado.
San Antonio Express-News: HF, HB 40, and concerns about liability
In late 2014 the citizens of Denton voted to ban fracking in the city and its extraterritorial jurisdiction. The proponents felt that fracking was a dangerous and polluting practice that does not belong in their community. Many other cities in the nation have passed similar ordinances.
San Antonio Express News: Engineering to the rescue in the Eagle Ford
Engineering and innovation can save the Eagle Ford Shale amid six-year low oil prices, participants at the Unconventional Resources Technology Conference said . More than 3,000 oil industry professionals are at the Henry B. Gonzalez Convention Center in downtown San Antonio for the conference until . And with oil prices hovering around six-year lows, many of the conference's panels are focused on technology to improve productivity and efficiency.
Akron Beacon Journal: New power plant seen as game-changer in Ohio
A big change is coming to Ohio: Coal is on the way out and cleaner-burning natural gas is moving in. That switch was behind the ceremonial groundbreaking southeast of Canton in tiny Carroll County, where a new, $899 million natural gas-fired power plant is being built in the heart of Ohio’s Utica Shale.
Times Leader: New Ohio well rules in place
Ohio Rep. Jack Cera believes new state Department of Natural Resources rules will help prevent accidents at Marcellus and Utica shale drilling pads, such as those in Monroe County that displaced residents and killed thousands of fish last year.
Columbus CEO: Anxiety hits Ohio’s industry. Columbus CEO. First was the shale oil and gas boom
Eastern and southeastern Ohio saw a surge in lease activity, pipeline projects and hiring. New wealth trickled through the economy to car dealers, hotel operators and restaurants. Now, Ohio’s shale country is an uncomfortable place, with elements of the boom still in place, and some companies facing what can only be described as a bust.
NorthCentralPa.com: Even Higher Energy Taxes Threaten Pa. Jobs
Shale development in the Commonwealth continues to benefit our economy and environment. From providing regional building trades unions with thousands of good-paying jobs to delivering consumer savings for families and improving air quality, these clear benefits touch all corners of Pennsylvania.
ADN/AP by Dan Joling. ... Royal Dutch Shell PLC 's drilling schedule for two exploratory wells this summer in the Chukchi Sea off Alaska's northwest coast, however, shouldn't be delayed by maintenance work on the 380-foot icebreaker Fennica, spokesman Curtis Smith said Monday.
Meanwhile, as the Iran negotiations continue to be extended, please note yesterday's commentary. -dh
Washington Post Magazine, by Julia Duin. ... This was Alice Rogoff (NGP Photo), wife of billionaire David Rubenstein and a former Washington business executive turned owner and publisher of Alaska’s largest newspaper. Rogoff had spent nine days piloting her single-engine Cessna 206 from village to village as her reporters covered 70-plus mushers crossing the state. ...
Rogoff’s husband was casting about for a post-White House career. In 1987, he co-founded the Carlyle Group, which would become one of the largest private equity management firms in the world. One of his earliest successes involved taking advantage of a loophole in the 1986 Tax Reform Act that allowed firms owned by Alaska Natives to sell off their tax losses to corporations in search of write-offs. Carlyle raked in millions in fees, in what critics referred to as “the Great Eskimo Tax Scam.”
We were concerned that Rogoff was seeking financial support from Alaska's Legislature when Alaska House was being partly used by an environmental group opposed to Alaska resource development.
While we appreciated Rogoff's motives and consider her to be an honorable person, we also believe her loyalties among free enterprise, Native, environmental, social, and international special interests to be unpredictable and divided.
Accordingly, her Anchorage Dispatch News acquisition tends to present a mostly left of center viewpoint in a state whose Constitution requires a mostly right of center approach to resource development. -dh
Rogoff established the Alaska Native Arts Foundation in Anchorage and purchased a house there in 2006. She seemed to see herself as Alaska’s unofficial ambassador to the East Coast. In 2005, the foundation set up a three-day festival at the Smithsonian’s National Museum of Natural History in Washington; a few years later, it established a 3,000-square-foot gallery named Alaska House in Manhattan’s Soho district.