By: Scott Goldsmith, NGP Photo
Point of personal privilege: Our great friend, Chuck Becker, passed away this morning (Photos). Today, family and countless friends are mourning his passing. We will attempt to provide more official information as the family makes it available.
Chuck and I met in the mid-1970s in Washington D.C. Another dear friend, the late Anchorage Mayor George Sullivan was his client and I was representing the first North Slope gas project, the Arctic Gas Consortium, with Washington and Anchorage offices.
After Chuck had moved to Anchorage and completed his economic development assignment with the Sullivan administration, and I had joined Atlantic Richfield Company, he and I worked on some communication projects. He soon became a respected communications consultant to some of the most important businesses in the 49th state.
Chuck was deeply involved in support of reasonable development of Alaska's resources through leadership positions with the Alaska Support Industry Alliance and after years of service was named "Director Emeritus".
A veteran of the United States Department of Commerce, he served as the long-time director of the Alaska Export Assistance Center, revered for his accomplishments by the Alaska World Affairs Council which he also served as a director and past president.
Indeed, I have always considered Chuck to be deserving of the title, "Alaska's Diplomat"; for his every mission at home or abroad uniquely reflected great credit upon the United States, Alaska, his personal integrity and his own considerable abilities.
I believe the world, the country and the State of Alaska are better for having hosted the life of this dedicated man.
I believe that Chuck's friends and family will remember him as much for his patient, gentle and principled nature as for his professional accomplishments.
One of our commentaries last week was edited and reprinted by the national, Master Resource Blog, and concluded with a number of interesting reader comments. (It was followed by a more heavily researched piece dealing with the environmental strategy to defeat capitalism.)
From Master Resource, it was adopted into an Austrian Economics Addict editorial: "In this article by Dave Harbour titled, Seattle Hearing On Shell’s Arctic Rig Docking: A Clash Of Visions, he talks about the differences between the two sides in this battle. Here are some excerpts from the article.
“If our civilization is to continue, our well-grounded public and private leaders need to wake up and undertake communication programs designed to better articulate...."
* * *
Would we like to see your reaction? Yes we would, and we will reprint or link selected submissions.
Readers wishing for a more in-depth look at the role of environmental armies in securing their avowed goal of 'the destruction of capitalism' may be interested in our less politically correct editorial last week, "Useful Idiots".
Calgary Herald Editorial: Everyone seems to agree that more pipelines are needed to carry Alberta bitumen to new markets, so let’s hope premier-designate Rachel Notley puts a lid on any further talk that could endanger approval of Enbridge’s Northern Gateway project.
Today's Energy Links by Larry Persily:
B.C. agrees to fiscal terms with Petronas for LNG project
(Wall Street Journal; May 20) - The province of British Columbia and Malaysia’s state-owned energy company Petronas on May 20 said they had agreed on fiscal terms to promote construction of a liquefied natural gas export terminal near Prince Rupert.
First Nation opposition presents legal question for LNG project
(Business in Vancouver; May 19) – The decision by the Lax Kw’alaams First Nation in British Columbia not to accept an offer from Pacific NorthWest LNG raises a number of questions, such as whether Petronas, which has yet to make an investment decision, might cut its losses if First Nations mount an all-out battle.
Companies deny Wood Mackenzie report of delays for Australia LNG
(Bloomberg; May 19) - Chevron and Japan’s Inpex Corp. face potential delays in starting liquefied natural gas projects in Australia, according to consulting firm Wood Mackenzie. Chevron’s Wheatstone and Inpex’s Ichthys ventures could start output in mid-2017, later than the companies forecast, Angus Rodger, Asia-Pacific analyst at Wood Mackenzie, said in an interview....
U.S. exports could help push LNG market toward more spot sales
(Bloomberg; May 19) - The U.S. is about to change the global LNG market. When the first tanker carrying liquefied natural gas leaves Cheniere Energy’s Sabine Pass terminal in Louisiana in December, it will turn traditional consumers into new traders with more bargaining power.
Cheniere says it is talking with LNG buyers in China
(Reuters; May 19) - Chinese buyers are eyeing long-term supplies of liquefied natural gas from Cheniere Energy’s U.S. export operations....
Tokyo Gas looks to invest in more U.S. production as price hedge
(Reuters; May 18) - Tokyo Gas, Japan's biggest gas utility, is looking to invest in more U.S. shale gas production ....
GAIL signs preliminary deal to sell some of its U.S. LNG to Shell
(Reuters; May 20) – GAIL, India's largest state-owned natural gas distributor, has signed a preliminary deal to sell some of its contracted volumes of liquefied natural gas to Shell....
Proposed Nova Scotia LNG project gains provincial permit
(The Chronicle Herald; Halifax, Nova Scotia; May 19) - After an environmental assessment, Nova Scotia’s provincial environment minister has granted Bear Head LNG approval to build an 8-million-tons-per-year liquefied natural gas plant.
Australia’s LNG industry has its share of worries, survey says
(Sydney Morning Herald; May 18) - A lack of competitiveness, unwieldy regulations and inflexible industrial relations threaten to derail a bonanza from the liquefied natural gas sector in Australia as it transitions from a $250 billion investment phase into production.
BHP says Australia LNG project ‘falls lower’ on its list of priorities
(Bloomberg; May 17) - BHP Billiton is lowering the priority of its proposed $10 billion Scarborough liquefied natural gas project with partner ExxonMobil in Australia amid a fall in prices and ....
Natural gas industry faces increasing opposition to pipelines
(USA Today; May 17) - The U.S. is producing record amounts of natural gas.... But building the infrastructure necessary to bring that fuel to market is increasingly difficult.
North Dakota farmers, ranchers frustrated over salty wastewater spills
(Wall Street Journal; May 16) - For most of the years since wildcatters began tapping the North Dakota prairies for oil, energy companies have existed peacefully with the farmers and ranchers ....
State legislatures act to protect drilling from local restrictions
(Wall Street Journal; May 19) – A Texas city last year banned fracking; state lawmakers want to make sure that never happens ....
Yukon Territory gold mine would consider using LNG for power
(CBC News; May 16) - Kaminak Gold Corp. is aiming to finish a feasibility study for its Coffee Gold project near Dawson City....
Yukon First Nation will invest in LNG-fueled power plant
(Yukon News; Whitehorse, Yukon Territory; May 15) - The decision to invest in Yukon Energy’s liquefied natural gas-fueled power plant in Whitehorse, the Canadian territory’s capital city, is supported by the Kwanlin Dun First Nation community, according to ... Chief Doris Bill....
Oil exports to Canada help ease pressure on U.S. storage capacity
(Wall Street Journal; May 19) – Crude oil exports to Canada provided a crucial relief valve for U.S. producers this year, according to a new report from ...
Gone fishing today..., with your approval! :-)
Lessons For Alaska From Canada:
Investors Can Go Anywhere. Get "your act together". You're not the "only game in town!" -dh
CBC News. ConocoPhillips says it doesn't plan to do any more exploration work on its parcel in the N.W.T.'s Canol shale oil play for the foreseeable future.
"Although a significant discovery declaration and subsequent significant discovery licence is a positive indication for a play, it does not indicate commercial viability," said Kristen Ashcroft, a spokesperson for ConocoPhillips.
The company says it will return to the site next winter, but only to suspend a well — "a common industry practice to verify the secure condition of a well for the long term," said Ashcroft.
The company would not confirm whether its discovery is oil or natural gas or both.
CBC News. The sixth annual Yukon First Nations Resource Conference brings together First Nations and mining companies ....
"I see some very, very encouraging signs and I also see some extreme negativity with the bureaucracy in place and some of the regulation and some of the bickering,” says Steve McAlister, director of Sepro Mineral Systems Corp, a company that provides equipment to the mining industry.
"Mining companies can go anywhere in the world, and they're going to go where the risk is least and the projects are most lucrative,” he says.
He says companies need certainty when they’re considering investing, and says he, personally, is feeling “ambivalent” about spending his company’s money here.
His advice for all governments? "Make sure you have your act together because the Yukon isn't the only game in town."
McAlister adds companies do not like surprises … such as court cases.
Point of personal privilege: Nephew Dave Harbour of Lamar, Colorado makes the clan proud yet again! Lamar Ledger by Chris Frost.
Southeastern Developmental Services had a special morning Thursday, March 12, as the American Legion Post 71 stopped by to present the organization with a new American Flag.
Post Financial Officer and Adjutant Jesse Herrera said SDS was ready for a new flag.
"What a better day could you have for doing this," he said. "There are so many great people here and this is what we do."
Dave Harbour called the gesture a cool time.
"We sure do appreciate Jesse and the guys from the American legion coming down and bringing a new flag to us," he said. "It sure meant a lot to all the clients down here."
3-16-15 The Future of Oil Prices According to An Astute Reader - Senators Sullivan's Reputation Spreads
Our friend, Rob Bradley (File Photo-R) of the Master Resource Blog, saw U.S. Senator Dan Sullivan's (NGP Photo) Maiden Senate Speech on this website and has further promoted it to his large international audience (here). (Our original coverage and speech text) -dh
Halloran Opines On Proposed Ohio Severance Tax and Future of Oil Prices
Republican Governor Proposes Ohio Severance Tax? Our friend, Independent Energy Analyst James R. Halloran (File Photo) just returned from the Ohio Oil and Gas Association Winter Meeting where he reported that, "the big issue is Governor Kasich’s proposal for a (completely mis-named) “severance tax”. We will have a lot more on that topic after (maybe) cooling off slightly. Momma did not train this writer to suffer fools gladly, and that is what Ohio is faced with on the topic of taxation of the oil & gas business."
(Point of personal privilege: our friend and longtime APRN senior reporter Steve Heimel (NGP Photo) is retiring after decades covering countless Alaska issues. -dh)
On oil prices, Halloran says, "The overwhelming question (outside of Ohio) is, When will oil prices go back up (how high is a second implicit question)? That question was posed to us numerous times at the Winter Meeting. Our standard answer is that oil pricing is a process, not an event. Assume for the moment that Brent oil (we try to stay with the international price for analysis purposes) were to return to $70 by midyear (this is NOT a prediction; it is for discussion purposes): Can we tell them what will happen to the price in the next six months after that?
"The relevant questions that need answering first", he says, "are:
- "Have there been fundamental changes in the market that will cause crude oil to trade at a different price range than $94-114 for an extended period of time? If so, what are they, and how will they affect the industry longer term?
- "If the the major inputs to the current market are more likely of a transient nature, what will have to change for prices to recover? Will a price recovery cause some of these transient inputs to recur?"
He elaborates that, "there are some effects that are of a transient nature (maybe) that are significant contributors to the oil price drop, of which we have commented heavily in the last several months:"
- "The strong dollar, which is following a trend to get even stronger, and which will likely provide a major head wind for any near-term recovery
- "Massive amounts of capital and incredibly low interest rates, putting many PE, Major, and vulture players ready to jump into the Energy pit. This is related to the strong dollar, and will provide no relief from the fact that there are too many players.
- "Too much production, which is having a hard time to find a home (see the chart of inventories below, courtesy of Mike Bodell), which graphically illustrates the situation.
- "Much of the capital cutbacks are coming out of the hide of service companies, so that lower costs will not really bring lower production volumes soon."
"No one is cutting back to the point of ceding “market share” to others. This capitalism at its purest. Unfortunately, it is being done in an environment in which central banks are imposing zero effort to observe capital discipline: Nothing. Nada. Rien. Zip.
"The only “good news” (but less helpful than one might think) is that the rig count continues to drop. It is too much to try to get trends from the rig count on a weekly basis, so we will be looking at it monthly. This should make it easier to spot trends. Our observations are as follows:
- "The downturn in rigs is much more directed toward oil (no surprise). Oil rigs are down 45% from our base date last December, compared to 25% down for gas rigs. The Marcellus, Utica, and Eagle Ford, which have large dry gas plays, are not down in rigs as much as the other basins.
- "Vertical rigs are down much more than horizontals. Also, Small Basins are harder hit than the major basins. This consistent with the WSJ article, which indicates that major players are still drilling big wells (just not completing them).
"BOTTOM LINE: The beatings will continue until capital discipline improves and/or the number of players is reduced. There may be rallies, but they will likely be shallow." (Note: While Halloran has sources to back his statistics, we removed them in the interest of space. -dh)
|Personal: We join our Fairbanks friends in lamenting the passing of our dear friend, Bob Bettisworth. -dh|
As Interior Secretary Sally Jewell arrives in Alaska, North Slope Borough Mayor Charlotte Brower (NGP Photo) writes that ANWR, "...wilderness proponents ... completely ignore the plight of my people, the Iñupiat."
What Would You Do If You Were President?
On Sunday, Fox News interviewed one of the wisest combat leaders of the modern era, Lieutenant General Thomas McInerney, USAF-Retired (NGP Photo), co-author of Endgame: The Blueprint for Victory in the War on Terror.
In addition to his extensive combat service, McInerney served as commanding general of the Alaska Command and coordinated military efforts in support of the Exxon Valdez clean up activity. He and his tough combat team also kept a close eye and air interception assets trained on Russian bombers, continually testing Alaskan air space defenses.*
At conclusion of the Fox interview, He was asked what he would do in the face of ISIS aggression in the Middle East. With a steady, focused gaze on the interviewer, he delivered a brief, powerful and logical response. If McInerney’s words had come from the mouth of a president, all Americans would have cheered and felt a renewed sense of national pride in strong, reliable and wise presidential leadership.
Without detouring into a war policy discussion, we would paraphrase from the McInerney interview a question from the viewpoint of our energy audience: If you were president, how would you enable the U.S. to become energy independent? So we decided to have some fun today and perhaps render a national service at the same time.**
We will give our response below, then ask our U.S. readers (and Canadian or other foreign readers) for suggestions, additions and corrections, sent to this address.
Here we go:
“If I were president, I would enable the U.S. to become energy independent in these ways:”
- "I would approve the Keystone XL pipeline before going to bed tonight, based on earlier, plentiful recommendations of the Department of State; the 40 thousand jobs it will produce; the hundreds of millions of dollars it will provide to local, state and federal governments; the improved national defense capabilities created by greater energy and economic independence; and the benefits that will flow to our largest trading partner, Canada."
- "I would approve oil and gas exploration and development on a small sliver of land within the 19 million acre Arctic National Wildlife Refuge. That sliver is roughly the size of Dulles Airport within a land mass the size of the state of North Carolina – which itself is a small part of the entire state of Alaska. That land sliver has already been designated by Congress for oil and gas potential. I would approve it for mostly winter work when the migratory wildlife are not in the area."
- "I would open the entire National Petroleum Reserve-Alaska to energy leasing subject to our customary stringent rules. I would not keep half of it locked up – and the other half choked with irresponsible regulatory barriers -- as the Obama administration has done."
- "I would ask of Alaska's Governor, 'We know the Trans Alaska Pipeline System (TAPS) is now running at almost 3/4 empty. What can the Federal government do with its federal assets to keep TAPS operating sustainably, since for my administration this energy umbilical cord attaches the United States to the huge, future oil potential of the Arctic?'"
- "Since 3/4 of America's coastline surrounds Alaska, a state 20% the size of the entire nation and over twice as large as Texas, I would give Alaska's governor -- and Congressional Delegation -- an open invitation to suggest federal policies that improve Alaska's economy while protecting the environment and strengthening the entire nation."
- "I would massively restrict the size of many regulatory agencies, including the EPA, which has become a monster devouring the wealth of America without much to show for it -- except a ballooning bureaucracy and economic devastation wherever it rolls. I would tell the EPA it cannot preemptively disapprove projects, in violation of the rule of law. I would order the agency to lay off Hydraulic Fracturing and leave its regulation to the states, which have safely regulated it for decades."
- "I would immediately nullify Obama's overreaching and unlawful executive orders. The famous ones deal with exceptions to the Affordable Care Act and providing massive citizen benefits to illegal alien non-citizens, but also include illegal, non-Congressionally approved natural resource blocking proposals, like the Ocean Policy executive order."
- "I would work with Congress to eliminate the possibility of opaque 'sue and settle' litigation, which impoverishes the country one lawsuit at a time. I would coordinate with Congress other judicial branch reforms that would remove any financial incentives for filing frivolous environmental lawsuits that would delay or block jobs and reasonable economic development.”
- "I would form an American Energy Independence Presidential Task Force, to include a special sub-committee on Alaskan Arctic Energy and Military policies." The purpose of the Task Force would be:
- to provide the President and Congress with detailed suggestions on how America may develop a rational, long term, sustainable energy policy based upon energy self-sufficiency and support of the nation's defense.
- to assure that energy and military policy recommendations included defending and advocating for proper jurisdictional control of Arctic sea, sea bottom and trade routes.
- to complete its work within six months,
"I would ask Congress to support the resulting FINAL, sustainable energy policy of which I approve. ”
- “I would replace the White House Council on Environmental Quality with a new White House Council on Economic and Environmental Policy. Under my direct supervision, the Council will provide a steady stream of recommendations about how to reorganize Executive Branch agencies to best accommodate any FINAL, sustainable energy policy recommended by the American Energy Independence Presidential Task Force. In addition, an important role of the Council will be to review any new agency order, regulatory or statutory proposal that would affect the FINAL, sustainable energy policy adopted by the White House. Following review, the Council will make a recommendation to the President for further action. These sorts of action will include agency efforts to declare critical habitats or endangered species regulations under the ESA and similar exercises of agency powers under the CWA and CAA.”
- “I would ask the oil, gas and wind energy industries to nominate on- and off-shore areas for leasing and based on that input, as evaluated by the new White House Council on Economic and Environmental Policy, order expedited changes to the Department of Interior’s leasing programs.”
- "I would get rid of the crude oil export ban and do everything possible to arrange for U.S. energy exports to European nations dependent upon Russian energy imports."
- "I will tell our friends in the Middle East, especially the Saudis, that they cannot interfere in our domestic energy policy issues, nor can they any longer provide funding to enemies of the United States unless they are willing to lose American friendship, energy trade and military support.”
- "I will redouble efforts to coordinate energy and other international policies with our Canadian, Israeli, British, Australian and other allies."
- "I will put into place a 'US Task Force for Latin American Energy, Economic and Cultural Independence', and spend significant personal time with the Secretary of State, coordinating cooperative energy, economic development, immigration and regional defense policies with the presidents of the countries in our own hemisphere."
- "America will once again speak softly but carry a big stick. We will state our position on energy and other multilateral issues. We will clearly state the result of accommodating or opposing our reasonable requests. Based on reactions, we shall respond decisively. Our negotiations with countries that have proven to be unreliable negotiating partners in the past shall not be extended. We expect results and we will act as promised. We will never draw red lines in the sand and not enforce our positions; neither will we ever leave any American citizen, federal employee or military member to the enemy's wrath without maximum effort to save that person or those persons. Every policy we undertake will be designed to be fair, reasonable, just and serious. We shall not bargain for energy industry or other hostages but will rain negative actions on those who hold, take, threaten, mistreat or kill hostages.”
For starters, that's what we'd do for energy were we president.
Oh, and we'd make sure to always keep the good counsel of competent Americans like LTG McInerney very close to us.
Unlike certain unsavory White House guests entertained by the previous administration, I would hope to have distinguished Americans like McInerney, Franklin Graham, Greta Van Susteren, Steve Forbes, Harris Faulkner, Scott Walker, Ben Carson, Alveda King, as regular visitors to the Oval Office.
(Now, Dear Reader, let's have your additions, corrections or suggestions! -dh)
*Your author had the honor of serving on LTG McInerney's Civilian Advisory Board over 2 decades ago with great friends and important figures in Alaskan history like Governor Walter J. Hickel, Publisher Bob Atwood, aviation pioneer Bill Brooks, and community leaders Sharon Anderson, Ernie Hall and Al Fleetwood.
**We would also like to ask: "What else would you do if you were President, to secure the country’s future?" The imagination rings with the President's other executive actions, EPA overreach, Fast and Furious, Federal suing of sovereign states, IRS illegal targeting, media spying, etc., but will leave that exercise to our non-energy colleagues.)
Robert Dillon of the U.S. Senate Energy and Natural Resources committee writes today about Interior Secretary Sally Jewell's Alaska visit.
He comments that Jewell,"is in Anchorage today preparing to host a press conference in a couple of hours on her trip to the Arctic communities of Kotzebue and Kivalina. While the secretary will undoubtedly focus her remarks on climate, I wanted to share the opinion piece below from North Slope Borough Mayor Charlotte Brower (NGP Photo). Ms. Brower, an Inupiaq Eskimo from Barrow, provides a unique counterpoint to Secretary Jewell’s efforts to lock up Alaska as if it was one big national park. Ms. Brower writes about the prosperity and economic opportunity that responsible oil production has brought to some of Alaska’s most remote communities and how this administration’s policies are endangering the future Alaskans are attempting to build for their children. -Dillon
ANWR worshippers fail to consider the Iñupiat (AK Dispatch/Opinion)
The Iñupiat Eskimo lived on Alaska’s North Slope for countless generations -- unknown to the outside world. Our culture, social structure and our survival depended on our ability to utilize the abundant resources that bless our region.
Over time, we found our lifestyle threatened when the thirst for resources drove others to our corner of globe, first for whales and later for oil.
Today, we are under assault by people who seek another resource -- wilderness. And just like those who came before them, they threaten the health of our communities, our culture and our way of life. President Obama’s announcement to seek wilderness designations throughout the entire Arctic National Wildlife Refuge, represents the latest salvo by the powerful environmental lobby to obtain their El Dorado. Read the rest of the Op-Ed here....
Charlotte Brower is mayor of the North Slope Borough.
Points of personal privilege: on this beautiful Sunday, we note the following personal items and leave you witha poetic prayer.
1. Kudos to all but a big hug and kiss to Nancy for a career of accomplishment far above and beyond any call of duty! -dh
From the Arctic Sounder:
'Last week seven directors of various nonprofits in the state were awarded a six-month break through the Rasmuson Foundation Sabbatical Program.
The recipients come from five communities across the state and include professionals in arts, and health and social services.
"Among them are Guy Adams, who is the CEO of the Northwest Inupiat Housing Authority in Kotzebue, and Marie Carroll who is the executive director of the Arctic Slope Native Association in Barrow. Also receiving the award were Nancy Harbour of Alaska Center for the Performing Arts in Anchorage, Marcia Howell of the Alaska Injury Prevention Center in Anchorage, Laurie Kari who runs the Mat-Su Valley Interfaith Hospitality Network DBA Family Promise Mat-Su in Wasilla, Rebecca Shields of the Kodiak Women's Resource and Crisis Center in Kodiak and Pauline Smith who runs the Alaska Literacy Program in Anchorage". http://www.thearcticsounder.com/…/1504arctic_executives_awa…
2. Today we pursue our typical Sunday schedule: exercise; good healthy, natural breakfast; an hour with our friend, Dr. Charles Stanley; and, an hour at our church.
In thanking you for being our reader, we must state an acknowledgement that we are imperfect in perhaps all ways but strive toward that lofty goal from waking at dawn to time for blissful sleep come evening. We also acknowledge that in the 'striving' we are also imperfect.
God bless you and yours.
Email response to two Kenai Peninsula NGP Readers who constantly give us nourishing feedback.
To: B & A C.......
You light up my life and keep my spirits high! Thank you.
----- Original Message -----From: "B & A" <firstname.lastname@example.org>To:
"DAVE HARBOUR" <email@example.com>Cc:
Sat, 24 Jan 2015 13:01:58 -0900Subject:
KEEP UP YOUR GREAT WORK, DAVE HARBOUR!
DAVE . . . SO MUCH NEWS APPEARS ALL OVER THE MEDIA BUT WE CANNOT ALWAYS TRUST THAT THE DETAILS ARE ACCURATE . . .SO . . . WE ARE VERY “INSPIRED” AND VERY LUCKY. . .TO HAVE YOUR COLUMN.
WE KNOW YOU ARE PROVIDING IMPORTANT INFORMATION FOR ALASKANS/AMERICANS . . . and we hope you CONTINUE TO SHARE THESE DETAILS!!!
YES, DAVE . . .A. AND I TRULY BELIEVE THAT GOD BOOSTS OUR MORALE BY SENDING SOMEONE LIKE YOU WHO BELIEVES IN KEEPING OUR AMERICA FOCUSED ON GOD’S PLANS! KEEP INSPIRING US, DAVE!!!