Petroleum News. Fugro has been awarded a large geotechnical and geophysical program by ExxonMobil Alaska LNG LLC, AKLNG - a consortium of ExxonMobil, ConocoPhillips, BP, TransCanada and the state of Alaska. The 2015 G&G program follows successful completion of a similar but smaller program carried out by Fugro in 2014. More....
|See more of yesterday's reports and reactions from U.S. Senator Lisa Murkowski (NGP Photo), various news sources yesterday, more sources today, and our commentary.|
Tuesday's Early Report: In Wake Of Shell's Announcement Yesterday That After $7 Billion Invested and Over A Half Decade of Delay and Disruption Mostly Caused By America's Government, It Is Withdrawing From Arctic OCS Exploration (Statements by Governor Walker (below), Alaska Oil and Gas Association, Consumer Energy Alliance, Congressman Don Young (NGP Photo) via American Energy Alliance. -dh
Yesterday, after absorbing Shell's announcement, Alaska Governor Bill Walker (NGP Photo) said in a statement we received, “I thank the people of Shell for all their hard work on offshore exploration and their strong focus on safety.
We would have said, "...it is a reminder that underscores our need to better cooperate with the oil industry, help it compete in every reasonable way and endeavor to not be an obstacle to industry investment in our state."
Instead, Walker doubles down on being a natural resource dictator. His actions can only lead to less investment, and, troublingly, an effort to socialize and seize ownership of natural resource projects.
How else can the governor's arrogance be explained? -dh
"While the company’s recent announcement is disappointing, it is a reminder that underscores the need for Alaska to drive its own destiny through development of known gas resources, as well as rich oil reserves in a small area of ANWR.
"I contacted the White House this morning to set up meetings to discuss the potential impact of Shell’s decision, as well as Alaska’s need to explore in the 1002 area.”
Alaska Oil and Gas Association President and CEO Kara Moriarty (NGP Photo) on Shell’s announcement
It is a sobering day for Alaska; both in the short and long-term," Moriarty said yesterday.
"Today’s news from Shell is a painful reminder that exploration is expensive, involves huge risk, and does not guarantee success.
Consumer Energy Alliance (CEA) President David Holt (NGP Photo) and CEA-Alaska President Anne Seneca issued the following statement yesterday in response to Shell’s announcement about its exploration activities offshore Alaska:
“Contrary to the previous rhetoric of anti-development activists, the 2015 Chukchi Sea exploration season provides further evidence that drilling can be done safely in the U.S. Arctic offshore. Furthermore, while extremists irresponsibly cheer the decision to put plans for further offshore exploration on hold for now, today’s announcement underscores the need for a more stable and reasonable federal regulatory environment,” said David Holt. “According to the U.S. Department of Energy, more than 63 percent of American energy will come from oil and natural gas by 2040. Finding and developing new resources is in EVERYONE’S interest, especially those Americans who can least afford to pay more for gasoline and electricity.”
According to Holt, “as the Interior Department mulls Arctic offshore drilling regulations and requests for U.S. Arctic lease extensions, and with the 2015 season accompanied by just-in-time permitting and conflicting agency decisions that prevented the drilling of more than one well, the federal government must commit to ensuring a regulatory environment that encourages rather than disincentivizes investment in the exploration of this region. CEA applauds Shell for its dedication to meeting consumer energy needs, as well as its patience with the unwieldy regulatory process and litigation delays over the past seven years and its persistent efforts to explore the potential for the production of American Arctic offshore energy resources.”
“Fossil fuels will be the primary contributor to meeting our energy needs for decades to come. At a time when lower 48 crude oil production is expected to decline over the long term, it is incumbent on federal decision-makers to do everything possible to accommodate the domestic development of these resources, including those in the Arctic.”
“Energy and the environment can and must occur together,” added Anne Seneca. “The environment is very important to Alaskans – and people everywhere. But so is economic opportunity and jobs for this and future generations. Developing our resources is important for our national security and future generations.”
For more information visit Consumer Energy Alliance.
"It would be interesting to know what the results would have been if Shell had been allowed this summer to conduct a multi-well program versus the very limited program of only one exploration well.
"It is now more important than ever for state policymakers and lawmakers to work together to ensure Alaska’s oil and gas industry has a viable future in this state; just like Shell, the companies working in the Cook Inlet and on the North Slope need legal, fiscal, and permitting predictability and consistency in order to make the sizeable investments required to keep the Trans Alaska Pipeline operational for many years.
"Shell’s departure is also a blow for the hundreds of employees who call Alaska home, as well as the many contractors and small businesses that began working on Arctic development as a result of Shell’s $7 billion investment.
"This decision will not halt oil and gas development in the Arctic Ocean, but, as of today, that development will be done by countries other than the United States that lack the stringent environmental standards demanded of industry in the U.S. There are very few companies that could meet these federal requirements and expensive demands, but even large companies with the financial resources like Shell will walk away from mega opportunities when they cannot continue to spend billions of dollars without any promise of a return.
"The Arctic Offshore has rightly been viewed as the next generation of oil and gas development in this state, so for those plans to disappear overnight is beyond painful. It is also a clear reminder about how a state dependent on one industry for 90 percent of its spending needs to look constantly for new developments in oil and gas development.
Moriarty concluded that, "With 27 billion barrels of known oil reserves in the Arctic Offshore, the Outer Continental Shelf was supposed to be Alaska’s next big opportunity.”
For more information visit AOGA.
More reactions keep coming in....
Bloomberg by Paul Barret. After spending $7 billion on a single well ... what?
From Our Mid-Atlantic Energy Analyst friend:
Some of the biggest long-term prospects for providing major oil supplies a decade are disappearing from consideration.
The US Arctic is unlikely to see any further interest for some years to come. It may be that the oil simply is not there in commercial quantities (this writer remembers that Sohio drilled the most expensive dry hole to that time in 1979 from a man-made island off the coast of Alaska), or they simply wanted to preserve capital for less risky plays.
Regardless, this is not the only such regional play, which just a couple of years ago had great prospects, that now appears dead in the water (bad pun). Consider Brazil’s pre-salt plays; even if oil prices had not fallen, Petrobras was going to have real trouble making a success there (this is a whole set of separate columns). We see this play going nowhere the rest of this decade.
We also wrote recently about the North Sea entering into curtailment mode; there will be more shut-downs than new plots drilled. Offshore US is not even mentioned these days.
The Alaskan North Slope is struggling to keep an adequate daily flow of oil for the Alaska pipeline; it is not far from reaching a critical level, and it is certainly not helped by the present price level for oil that does flow. If it cannot stay above about 300,000 bpd, the whole thing faces shutdown and dismantlement. There are others.
The point is, the Megaprojects around the globe are getting long in the tooth, helped along by technology to keep production commercial but old just the same. If the next generation of Megaprojects is delayed by several years each, there will come a time when oil prices will once again be squeezed. It may not come soon enough to give much comfort to today’s producers, but it is coming just the same.
Congressman Don Young:
"I’m sure somewhere Sally Jewell and President Obama are smiling and celebrating Shell’s decision to cease operations off the coast of Alaska. For Alaskans, this announcement is a major blow to our local communities, the future of Alaska’s economy, and the Trans Alaska Pipeline. Make no mistake, this decision is the result of the Administration’s narrow-minded approach to responsible resource development – putting large areas off limits, while building insurmountable new hurdles to use areas that have been leased.”
FOR IMMEDIATE RELEASE
Contact: Miles Baker, VP External Affairs & Government Relations (907) 321-8650
AGDC Clarifies Status of ASAP Project
Federal Environmental Work on In-State Gasline Project Ongoing
September 28, 2015 Anchorage, AK – The Alaska Gasline Development Corporation (AGDC) released a statement today clarifying the status of the Alaska Stand Alone Pipeline (ASAP) project. In the last few days, several media outlets have incorrectly reported that the corporation’s board of directors took action to suspend work on the ASAP project during their September 23rd meeting in Anchorage.
In a prepared statement, AGDC President Dan Fauske said:
The Alaska LNG project continues to be this corporation’s number one priority. However, our board’s direction to management has been clear – continue to maintain the viability and readiness of the Alaska Stand Alone Pipeline (ASAP) project as the state’s backup plan. The corporation is prudently managing the state’s resources by eliminating duplication of effort and cost, but intent on preserving ASAP’s knowledge base and readiness in the event the Alaska LNG initiative does not progress to project sanctioning. At our September meeting, the AGDC board received a progress update from the ASAP team, but issued no directional change to management regarding the project.
In January, AGDC completed FEED and delivered a full Class 3 cost estimate for the ASAP project. The milestone was the culmination of a substantial body of work, conducted over several years and it was achieved on-time and under budget. However, in response to the State of Alaska’s decision to prioritize the Alaska LNG project, the AGDC board prudently adjusted the future work plan, budget and timeline of the ASAP project to bring it into alignment with key Alaska LNG decision milestones. This included postponing additional commercial activities pending an outcome on the Alaska LNG project. With principal ASAP engineering work completed, AGDC has concentrated its work efforts on continuing the U.S. Army Corps of Engineers (Corps) Supplemental Environmental Impact Statement (SEIS) process so that federal permits and right-of-ways for the ASAP project can be secured.
During last week’s board meeting, the ASAP project team confirmed that AGDC filed a revised Section 404 Clean Water Act permit application with the Corps on September 10th and would also be submitting an updated right-of-way lease amendment to the State of Alaska within the next several weeks. The team also highlighted that it has recently posted a new interactive map viewer to the ASAP website in support of the SEIS process. The map viewer allows the public to explore the project’s alignment, geographic footprint, facilities and design components in order to better visualize the project and its potential impacts.
The ASAP project is designed to deliver utility grade natural gas from Alaska’s North Slope to Fairbanks, Anchorage and as many other communities within the state as possible. The project consists of a gas conditioning facility, a 36-inch diameter pipeline from Prudhoe Bay to ENSTAR’s existing gas distribution system near Anchorage at Big Lake; and a 30-mile lateral to Fairbanks.
Oil Price by Nick Cunningham. ... ExxonMobil’s CEO Rex Tillerson didn’t mince words in a recent interview with the Energy Intelligence Group. “I have a long history with this, and I always tell every governor of Alaska, ‘You are not waiting on us. You are waiting on you,’” he told the Energy Intelligence Group, as reported by The Alaska Journal of Commerce. “And every governor that comes in decides they’ve got a different way of doing this, which is why it never happens. You can’t take a project that is going to take five-six-seven years to execute and require $50 billion-$60 billion of capital and decide every two years you’ve got a different way to do it.”
Tillerson thinks Walker’s moves may have doomed the project, at least for now. “We’ve had two good chances in the last 10 years to get it done, and as soon as you had an election that ended it. Alaska is their own worst enemy.” (See our reference. -dh)
YOU READ ALASKA GOVERNOR BILL WALKER'S ANNOUNCEMENTS HERE FIRST, YESTERDAY
BELOW IS TODAY'S UPDATE
(Scheduled for completion this weekend)
I always enjoy your newsletter, but your recent re: the NG issues one is special.
In my nearly 60 years in Alaska I have witnessed "many positive", and "too many negative" uses of the resources found within the boundaries of Alaska (not the boundaries of the State of Alaska) but nothing, not fish plants, not bridges to nowhere, not barley farms, etc., come anywhere near the Natural Gas fiasco that got underway with the El Paso group so long ago.
I have many observations and opinions on what has transpired over time, and will not list them.
But I continue to marvel at the way our "leaders" (elected and not) and the consultants, have been able to relieve the bank accounts (and the money goes somewhere!)!
Thanks, keep up the good reporting.
Terry T. Brady, MS (wood science), for
The Governor's Bombshell
We call Governor Bill Walker's actions this week a 'bombshell' because just as they create a new relationship with Alaska's largest investors so do they change Alaska's reputation as an investment destination. While the Governor has created "change he surely hopes Alaskans will believe in", at the same time, he has destroyed Alaska's attempt over the last few years to make itself more attractive to investors.
Here is, 1) what the Governor did and, 2) how we react to those actions after nearly 45 years of experience in Alaska as a regulator, educator, journalist, small business owner, municipal employee, oil industry executive and non-profit sector volunteer.
What The Governor Did
- Alaska Governor released a "Summary Report on the Review of the Alaska LNG Project Process"
- The "review" should be read in context of his very personal transmittal letter sent to legislators.
- Above is a video he released yesterday.
- Here is a bearish oil price report provided by the Governor
- Here is the Governor's proclamation calling for a special session to, among other things, establish a 'reserves tax' on industry investors applying to gas that is available but not committed to a market.
- Here is the Governor's news release, discussing the above actions.
- Alex DeMarban's ADN review of events.
- We think Alaska's leaders may sometimes forget that sophisticated observers are watching, from all over the world! Here's an example, our Australian oil and gas industry analyst friend who is quite candid about his view of Alaskan leadership and its LNG project.
- Here is our recent and highly relevant review of the Alaska investment climate.
Our Reaction To What The Governor Did
General. Governor Walker assumed office knowing the economic challenges were awesome.
Oil prices ranged at half the level the state operating budget required and that operating budget, in turn, was 90% dependent on Prudhoe Bay oil production. The entire economy of Alaska is over a third dependent on this sole source of income. Annual deficits of $3.5 - $5 billion will deplete the state's available savings within two - three years depending on the level of spending cuts politicians are ready to approve. Still, an almost $10 billion state employee retirement program unfunded liability awaits full funding.
Alaska's oil income flows from a 1/8 royalty share of the oil; a discriminatory, statewide 20 mil oil and gas property tax; one of the highest production (i.e. 'severance') taxes in the free world; and, a corporate income tax.
While the royalty rate was one of the lease terms agreed upon during the famous 1969 Prudhoe Bay lease sale, the bulk of oil taxation was added after the lease holders began making their massive investment in developing the ANS reservoirs and building TAPS. For the dozen years following the lease sale, taxes were increased about a dozen times. At least twice in Alaska's history, higher tax rates were applied retroactively for the sole purpose of clawing into state coffers, more money.
While Alaska got away with its unfair and predatory taxation for a long time, even the great and prolific Prudhoe Bay reserves would dwindle, age and continue need massive reinvestment in order to spawn new production. The trouble is that with the highest oil taxes in the free world, Alaska's political leadership had created the highest per capita taxing authority in America, the highest debt per capita state in the nation characterized by some of the most lavish social programs devised by man. Alaska even has more non-profit organizations per capita than any other state.
In the early 1990s, Dr. Scott Goldsmith (NGP Photo) of the state university's Institute of Social and Economic Research began warning that if Alaska were to begin slowly cutting the growth of spending its economy could arrive at a "soft landing", meaning a sustainable, long term economy.
Common Sense for Alaska, a public interest non-profit organization, sponsored government-spending conferences leading to powerful recommendations for a constitutional amendment limiting government spending increases to an inflation/population formula.
All public officials paid lip service to both Dr. Goldsmith's warnings and Common Sense's recommendations, to no effect. Spending continued to explode.
Alaskan apologists justified their high oil taxes and high spending in this way: "We are a large state with a small population and our cost of living is higher than elsewhere; therefore, it costs more for us to maintain government services."
Problem with that argument is that no matter how much a person, family or government wants to spend more money, one simply can't spend more than one brings in without sacrificing credit worthiness. (Of course, the Federal government has shown that it can spend over $18 trillion more than it takes in, but even its citizens pay for its irresponsibility when, ultimately, inflation devalues the currency) Recently the rating agencies, as we have long predicted, began putting Alaska on notice that its cost of borrowing is likely to increase since its economic risks have now become too large for analysts to ignore.
In addition to the low price era in which Walker finds himself, production has been steadily declining for years at a 5-7% rate.
In the mid 80s, Alaska produced over 2 million barrels per day to feed about a fifth of America's domestic oil needs. The Trans Alaska Pipeline System (TAPS) which transports Alaska North Slope (ANS) oil to tidewater now operates at only about a quarter of its capacity. Nearly three-quarters empty is another way to put it.
Governor's Background. Governor Bill Walker was born, raised and spent most of his life in the state. We believe that many who know him would agree he is a gifted public speaker with charismatic qualities. He knows the state well.
These attributes would benefit one's role as governor.
But being governor of a State dependent on oil investment requires a studied, wise, world view of the opportunities, the competition, the alliances leading to a successful term of office.
As a lawyer, much of his professional background, counter-intuitively, dealt with politics and marketing. He held elective posts in Valdez, site of the major, 1989 oil spill, and served as the general counsel and major marketer of a municipally-owned authority.
The Alaska Gasline Port Authority (AGPA) was designed to promote (i.e. and then finance, build and own) a gas pipeline/LNG export project.
During this time, Walker continually criticized other parties (i.e. like the oil industry) for not cooperating with AGPA's or predecessor LNG project efforts.
An observer might conclude Walker's AGPA was never successful for logical reasons: 1) From the early 80s to the late 90s, the Lower 48 gas price was too low to support any project and the world LNG trade was in its infancy. 2) During the years, before the shale phenomenon, when the Lower 48 needed Alaskan gas, the most economical way to monetize ANS gas was to send it by pipeline directly down to those markets, and not to try to send it via tankers to Asian markets. 3) When the shale revolution produced massive gas supply for North American markets, Asia looked more promising, especially after the Nakashima tragedy in Japan lessened interest in Nuclear power and increased interest in natural gas fired power plants. At that point, the major gas owners rather quickly shifted their sights to Asia and with ample expertise and contacts had no need for a 'middle man' like AGPA to market their gas.
Others may view it differently, but this scenario provides a very understandable backdrop for this governor's 'Alaska-centric' judgment and decision making.
While his AGPA attempts failed to monetize ANS gas, now he is governor and, again, he may be viewing the oil companies as roadblocks when, in fact, their diligent efforts have brought an ANS gas monetization project farther forward than ever before.
We believe it ironic that Walker's zeal to be the man at the helm of an LNG project may, in fact, be clouding his judgment and sabatoging the project.
Insisting on certain state control of and equity in a mega project perverts the private enterprise system to begin with. Then, to be criticizing the investors, refusing to talk about a comprehensive fiscal security package for them and threatening them with a gas reserves tax radiates a hostility sufficient to dampen the ardor of any Alaska investor, current or potential.
In fact, we would be not the least surprised to someday read an announcement from one or more producers to the effect that, "The governor has indicated his desire to own and operate an ANS gas pipeline/LNG system. We respect that desire and, accordingly, are withdrawing from our plan to construct such a project. Instead, we stand ready to sell the state the research and planning material we have developed and will support the governor's efforts in any reasonable way. Our efforts had led Alaska closer than ever before to launching a successful ANS gas monetization project and we were completely on schedule with that effort, but for the governor's demand that we spend additional time and money studying a 48" pipeline alternative. The time honored adage that, 'too many cooks spoil the soup', is as true now as it was in the old days. Rather than face a continuingly critical state administration for what we believe has been our on-time, on-budget, good faith gas monetization effort, we conclude it prudent to transform our project support into support for the governor's state-ownership idea, whatever that turns out to be. Meanwhile, we shall shift the majority of our focus now on investing in expanded throughput of TAPS, upon which the state government and the people of Alaska depend."
Please check back this weekend; much more coming....
|KTVA Video/story by Liz Raines. The Alaska Stand Alone Pipeline (ASAP) was almost ready for construction after more than five years. At a board meeting Wednesday, members of The Alaska Gasline Development Corporation (AGDC) decided to mothball it, saying they didn’t want to run parallel projects. Instead, the agency plans to focus efforts and funding on AKLNG, the larger pipeline project that involves large oil companies like Exxon Mobil, BP and ConocoPhillips.
ADN by Alex DeMarban. ... concerned with public apathy about an effort the state has pursued unsuccessfully for decades -- to tap and sell gigantic volumes of North Slope gas -- the Alaska Gasline Development Corp. has proposed launching a communication campaign to educate the public about Alaska LNG.
(John) Burns, the chair, said there’s a lot of “gas line fatigue” in Alaska, with people confused about the process. Some don't understand that the large sums the state is putting into the project are investments that will one day yield income, he said.
An education campaign could help unify the state’s messages that currently come from multiple sources, including the governor's office, AGDC and agencies working on the effort, officials said.
“The general public has to know what’s going on. It’s Alaska’s pipeline,” said board member Dave Cruz.
Miles Baker, vice president of external affairs and government relations, said the campaign could probably cost “several million dollars” over the next couple years.
(AGDC President Dan) Fauske said that's possible, but a final plan has yet to be presented to the board.
"We really have no clue," he said, referring to the potential cost.
FRIDAY'S EARLY REPORT: MORE TO COME, INCLUDING OUR VIEW OF WHY WE CHARACTERIZE THE GOVERNOR'S RELEASE ON THURSDAY AS A BOMBSHELL REPORT (I.E. NOT MEANT AS AN ENDORSEMENT.) MEANWHILE, WE WANTED YOU TO HAVE THIS MATERIAL AS SOON AS POSSIBLE. PLEASE REVIEW IT AND DEVELOP YOUR OWN REASONED PERSPECTIVE. -DH
Reference: Governor Bill Walker's transmittal letter to Legislators
Reference: Governor Bill Walker's, "Summary Report on the Review of the Alaska LNG Project Process"
We will provide our dear readers with commentary later in the day on Friday.
Here is the copy of an email alert we also issued Thursday on this subject:
- A Governor who has endured a quixotic journey of several decades to force private industry to build a project of his own dreams, and
- Legislative leaders who created a several hundred million dollar state-owned "Alaska Gasline Development Corporation" (AGDC) to deliver North Slope Gas to citizens in case a larger interstate project did not materialize, now run by Walker's appointed board members, and
- Alaska's largest investors, the North Slope Producers, who purchased leases, found oil and gas and have the right to market it while providing a royalty in kind (RIK) or royalty in value (RIV) to the state, and
- Fairbanks citizens and politicians anxious to benefit from a state-financed -- and to this point state managed -- natural gas distribution system concept, enabled by Walker appointed members of a state investment corporation, and
- Politicians from all over the state who are thinking, "How can my constituents and I benefit from any of the horse trading going on", and
- Frightened citizens whose leaders have created a $4-5 billion ANNUAL deficit in the state operating budget which is almost 90% funded by North Slope producers -- at a time when production is declining, world oil prices remain depressed and state spending continues rising.
Regular readers will know that this blog considers the Alaska LNG (AKLNG) project to be the Aesopian tortoise of the LNG project world – not as flashy as some, but plodding towards first gas next decade.
However, that tortoise carries a heavy shell that would be familiar to LNG project proponents in most locations around the world – a Government that wants to maximize its share of something that does not as yet exist – and therefore risks getting a larger share in nothing rather than a reasonable share in something.
Australian readers of this blog will likely be familiar with only one Alaskan Governor – the surprisingly socialist (when it comes to taxing oil companies) Sarah Palin. Her populist instincts live on in the State and even the Russian news service Interfax today points out that AKLNG risks being bogged down by politics (http://interfaxenergy.com/gasdaily/article/17647/alaska-lng-could-be-left-out-in-the-cold).
Alaskan based website Northern Gas Pipelines (http://www.northerngaspipelines.com) today provides an update on the latest Government meddling in AKLNG and asks the reasonable question – “with so many government cooks in the LNG kitchen, really, what could possibly go wrong?”
Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska and a Commissioner Emeritus of the National Association of Regulatory Utility Commissioners (NARUC). He served as NARUC's official representative to the Interstate Oil & Gas Compact Commission (IOGCC). Harbour is past Chairman of the Alaska Council on Economic Education, Anchorage Downtown Partnership, and the Anchorage Chamber of Commerce. He served as President of the American Bald Eagle Foundation, Common Sense for Alaska and the Alaska Press Club. He is Chairman Emeritus of the Alaska Oil & Gas Congress.
Opinions or viewpoints expressed in this webpage or in our email alerts are completely independent. They are solely those of the publisher and are not intended to reflect the opinion(s) of any affiliated company, person, employer or other organization which or who may, in fact, oppose the views stated herein. -dh
You'll love this Blog by our Aussie friend; try it here.
Suncor (TSX:SU), Canada's largest energy company, boosted its stake in the Fort Hills oil sands project
ADN by Pat Forgey. The big oil companies that plan to produce and ship North Slope natural gas have agreed to pay $16.5 billion in property taxes on the huge project, but they'll pay them to the state instead of local governments, Revenue Commissioner Randy Hoffbeck said Wednesday.
“This past Monday, employees were informed of organizational changes being implemented over the next several months. At this time, our new structure has resulted in a reduction of some senior leadership positions. Moving forward, staffing levels will be further impacted,” wrote company spokesman James Millar in an email.
NGI Daily by Joe Fisher. Alaska Gov. Bill Walker (NGP Photo) plans to hold a special session of the state legislature next month related to the Alaska LNG project. The main, and perhaps only, topic is expected to be a potential state buyout of TransCanada Corp.'s stake.
|Alaska Journal of Commerce by Tim Bradner.
Alaska LNG Project managers presented an upbeat report on technical progress of the giant gas project in a Sept. 9 briefing to legislators, but also warned of the economic challenges faced.
Steve Butt (NGP Photo), an ExxonMobil official who is manager of the overall project, described the possible complications of an expansion of the pipe diameter requested by Gov. Bill Walker. However, if the expansion were done the goal would be to keep the project on schedule for a 2018 or 2019 construction decision, he said.
Butt said there are about 1,000 people at work on.... More...
A deal would have to occur by Dec. 15 due to provisions of agreements between the state and the pipeline company. Lawmakers have received notice of the special session, which is expected to end by Thanksgiving. More....
Forbes by Brigham A. McCown. Alaska was long at the vanguard of America’s energy industry. At one time the State of Alaska accounted for as much as one-quarter of the entire country’s domestic oil production. Alaska’s vast fields also served as a source of pride – and the backbone of the state’s economy. As production surged, it was common to hear industry men revel in the United States’ diminishing reliance on foreign supplies as they worked rigs up and down regional reserves.
Yet, as energy development in the lower 48 has burgeoned over the past decade, those refrains have waned.... More...