Notes From the Road

Geek note:  We lament your opinion of us when--as in this morning's alert email (subscribe above right)--the automatic editing program substitutes an "it's" when we actually typed "its".  This is not to say we don't make mistakes, but we prefer to take blame for our own mistakes and not for our robot's.  Actually, we shouldn't blame our robot either, since it's our responsibility to proof read, not its.  -dh

...because in addition to remoteness from markets, chilling climate, daunting topography, extreme labor and logistical costs, investors must deal with unpredictable tax and regulatory policies, media critics, environmental activists and special interests that would rather investors spend their money some other way or in some other place.   It will be almost miraculous if any big Arctic projects are completed in such a polluted and toxic, political atmosphere.  Without developing petroleum wealth, rural life in the North as we now know it is unsustainable.   If the North's influence leaders and decision makers continue to block life sustaining wealth production, governments could well begin pulling the plug on the flow of subsidies now moving northward as investors find more friendly destinations for their entrepreneurship.  -dh

ADN by Lisa Demer.  Chevron, the biggest oil and gas operator in Cook Inlet, is selling its assets there to an independent company, Hilcorp Alaska LLC.

Calgary Herald by Dina O'Meara.  Royal Dutch Shell PLC has pulled out of the Mackenzie Valley natural gas project, putting its pipeline stake and lease interests on the auction block in a move throwing the future of the long-delayed project further into question.

Foreign Policy by Mia Bennett.  Though the Arctic may be rich in natural resources, that doesn’t mean it’s easy for corporations to make money there.

Commentary: This Calgary Herald Op-Ed by Gil McGowan attacks Alberta leaders and suggests that he knows better where pipelines should go than government experts or industry investors.  We see this sort of back seat driving in Alaska, too, by those who have a special interest agenda that can only unfold if the way to it is paved with other people's money.    Then, the Calgary Herald's own editorial writer, Licia Corbella, adds fuel to the fire and joins the attack on the industry that feeds Alberta's economy.   If I were a newspaper publisher in Alberta, I'd be delighted to have a great deal of industry support for a political 'gathering of the eagles' such as the one Energy Minister Ron Liepert  (NGP Photo) has so effectively organized in a way that minimizes taxpayer impact.  Why can't more influence leaders in Alaska and Canada simply be more grateful that they were blessed with natural resources that keep a cold, dark place light and warm and provide an income stream that enables civilization to survive?  -dh

We had the pleasure at noon today of introducing California Farm Bureau Federation President Paul Wenger and think our readers will find his presentation unusual and compelling:

 Los Angeles, Ca. -- The NARUC program yesterday kicked off at the J.W. Marriott's Dimond Ballroom here with keynote presentations by Peabody Coal's Chairman and CEO Gregory Boyce (NGP Photo-L) and Chesapeake Energy's Aubrey McClendon (NGP Photo).  The two CEOs exposed the continuing tension between fossil fuel cousins: coal and natural gas.

Boyce took a ....  (This story is planned for uploading this coming weekend, along with the account of California Farm Bureau Federation President Paul Wenger's message to a commissioner luncheon hosted by Consumer Energy Alliance.)

Notes From The Road: Los Angeles

We see many old friends and energy leaders at the meetings we attend with the Interstate Oil and Gas Compact Commission (IOCC) and the National Association of Regulatory Utility Commissioners (NARUC).  Earlier this summer we were with IOGCC in Bismarck, during the "Great 2011 Flood".  This week with NARUC in Los Angeles with "Carmageddon" erroneously predicted, and will hear from Paul Wenger, President of the California Farm Bureau Federation and from Aubrey McClendon, Chairman and CEO of Chesapeake Energy Company and Greg Boyce, Chairman and CEO of Peabody Energy Company. We also encountered representatives of Canada's and Mexico's regulatory agencies along with FERC representatives and Larry Persily, Federal Coordinator of the Alaska gas pipeline project.  We will have more for readers on the NARUC meeting tomorrow.  By the way...the great traffic snarl predicted over the weekend did not come to pass since most drivers stayed home out of fear of becoming ensnarled in traffic.  -dh 

Commentary by DH (Reference PNA): We believe the comment we earlier provided on the supply of natural gas to Interior Alaska was not as insigntful as a commentary we received from reader, Doug Smith.  Here is his Monday Op-Ed!  -dh

Yesterday, ADN's Becky Bohrer reported that lack of progress on AGIA pipeline is making lawmakers "Antsy".

Remembering North Dakota

by

Dave Harbour

While the main purpose for my trip to North Dakota was to attend the annual meeting of the Interstate Oil and Gas Association (IOGCC), I returned home with a nostalgic impression of how today's North Dakota represented yesterday's Alaska.  North Dakota is confident.  Alaska, as noted in the story link above, is 'antsy'.

more coming....

Governor Sean Parnell Tells Washington Journalists of Plan to Boost Alaska Oil Production To 1 Million Barrels/day.

Julie Hasquet of Senator Mark Begich's Office and Megan Hermann of Senator Lisa Murkowski's Energy Committee office Provided This Link To Pipeline Throughput Study

Shell's Marvin Odum Optimistic About Arctic, reports AP's Dan Joling

USGS Boosts Estimate of Cook Inlet Oil and Gas, reports ADN's Erika Bolstadt

(Written en route from Bismarck to Anchorage...IOGCC stories and photos will appear here.  -dh)

Alaskans Turned Out Last Night To Defend Alaska's Future!  Soldiers From International Environmental Activist Organizations Turned Out Too!

by

Dave Harbour

(With Help From Many Readers, Including Carl Portman {NGP Photo-L} and Jeff Jones {NGP Photo}.) 

Last night about 100 Alaskans turned out for hot dogs and conversation, an hour before the 7 p.m. federal hearing regarding OCS exploration of the Chukchi Sea.  The "Eat, Drink and Testify" event, organized by a number of Alaska non profit volunteers, encouraged citizens to make their views known on a "Supplemental Environmental Impact Statement" (SEIS).  Joining them as allies were "Pro-OCS Jobs Polar Bears" in costume.  The local non-profit volunteers came from the Alaska Support Industry Alliance, Resource Development Council for Alaska, Chambers of Commerce, Consumer Energy Alliance and other individuals who chipped in to arrange for BBQ hot dogs along with a tent and chairs outside the Loussac Library hearing venue in the summer sun.  We hear that about 80 hot dogs and an unknown number of soft drinks were consumed.  

The Pro-OCS crowd consisted of about 100 and 32 of those testified, including private citizens, government officials and representatives from a broad sector of the economy, including mining, timber, tourism, trucking, oorganized labor, 

Testimony of the majority group of Pro-OCS citizens focused on a variety of issues, including:

• The Trans Alaska Pipeline System (TAPS) is 2/3 empty and throughput is declining at an alarming 6% annual rate.  Since TAPS provides nearly 90% of Alaska's revenue stream, the economic future of Alaska depends on refreshing throughput with new oil from other sources including the Chukchi and Beaufort Seas, ANWR, NPR-A.
• America's national security, balance of payments deficit, economic recovery and high unemployment rate all require the reasonable but timely development of the Arctic.
• Alaska's statehood compact implies reasonable development of natural resources on state and federal lands.
• The Arctic can be safely explored.  If we don't do it ourselves, we will import energy from others employing less certain environmental standards.
• The President's selling of SPR oil is a short term fix, no substitute for long term Arctic oil supplies.

Speaking against Chukchi exploration at the Bureau of Ocean Energy Management and Enforcement (BOEMRE) hearing were about 11 Alaska representatives of a number of international and national environmental activist groups, including the Pew Environmental Group, Sierra Club, Wilderness Society along with several allied Alaska Native speakers.  The general theme of their remarks was that the SEIS is flawed and lacks critical data.  

Some of their arguments were:

• We shouldn’t move forward until the data gaps are eliminated
• Alaska does not have the highest safety and environmental standards in the world
• Just say no to new drilling
• Say goodbye to the oil and gas industry
• We need to develop our renewable energy resources and break our addiction to oil
• Industry lacks the capability to clean up a spill in the Arctic
• Pipeline is not in jeopardy of closing anytime soon. 
• The ocean is our garden

We were delighted that KTUU's Rebecca Palsha (NGP Photo above-r) covered the event, capturing the Pro-OCS polar bears, interviewing one citizen and covering several of the witnesses.

Unfortunately, only one of sixty Alaska legislators turned out to testify and support Chukchi exploration, Senator Cathy Giessel (NGP Photo-r) of South Anchorage.   Other government officials speaking in favor of Chukchi development included Larry Baker (NGP Photo) representing Anchorage Mayor Dan Sullivan and a representative of Governor Sean Parnell's administration, Jodie Simmons of the Department of Natural Resources.  No government speakers opposed Chukchi development.

Testimony of our readers and various OCS supporters included: Tom Maloney (NGP Photo-r), Aves Thompson (NGP Photo, L with pro-OCS bears 2-11) et. al.  Lucy Bishop said: "We need to keep the Alaskan Pipe Line for Alaska's survival & job security.   We need all the oil & natural gas we can produce to keep America independent!".  Reader Margy Johnson testified and later wrote an Opinion-Editorial for us.  The American Trucking Association later weighed in.  Others included Peter Macksey, Curtis Smith, Ben Mohr, Maynard Tapp, Renee Limoge, Michael Jesperson, Russell Sell, Collan McCarthy, Carl Portman, Susan Childs, John Sturgeon, Ron McPheters, Jennifer Taylor, Stacey Dean, Dave Cruz, Wayne Leighty, Len horst, Mike Houst, Kim Knudson, Rocky Dipple, Tom Lovas, Keith Silver, Laurie Becwar, Betsy Lawer, John Shively, Kate Williams, Cody Lee.

The anti-OCS witnesses included: Muja Johnson, Michelle Daniel for the Pew Enavironmental Trust, Mae Daniel, Marilyn Houser, Paul Kendal, Lois Epstein, Marilyn Heiman, Steve Senner, Dorthy Lazar and the Sierra Club's Lindsey Hajduk.

Come EAT, DRINK and TESTIFY at the Chukchi hearing today, June 29th at 5:30 p.m. at the Loussac Library. Fill out a comment card and enjoy a hot dog and drink before the hearing. The hearing itself will begin at 7 p.m.  If you can't attend the Anchorage event today, you can EASILY file an electronic comment here! We have been very respectful of the commitment by some elected officials to fight for Alaska's future by participating in these hearings.  This particular one could establish a record for federal decision making that will result in filling or not sustaining life of the Trans Alaska Pipeline, Alaska's economic lifeline!  We hope for a great turnout by legislators, assembly members, mayors, NGOs, corporate and academic leaders and many private citizens!  Email us your testimony to post here.  -dh

Yesterday, IOGCC commissioners attending meetings in Bismarck heard four governors focus on the importance of domestic energy production (NGP Photo-N.D. Governor Jack Dalymple).  Story and photos will appear here.

AP.  The trans-Alaska pipeline (was) scheduled to be shut down Tuesday for about six hours.  Alyeska Pipeline Service Co. spokeswoman Linda Sather told KXFX-TV that the company (would) test systems and conduct work on valves.   Sather said crews would test the computer system that controls the pipeline, perform fire system testing and conduct valve work during the second short shutdown of the summer.  The event is not expected to affect production rates.  A 36-hour shutdown is scheduled for July.