You Read It Here First

Delayed Alaska Gas May Mean More Oil Revenue - Using Alaska's Constitution To Justify Selfishness

17 August 2011 6:14am

 

Breaking news.  A few minutes ago, the Alaska Gas Pipeline Federal Coordinator, Larry Persily (NGP File Photo), said he thinks the (AGIA/TransCanada) project is "very viable…," but to get someone to sign shipping commitments, "you're going to have to have a fiscal deal between the state and producers."  Check for more complete report tomorrow morning.  -dh

More links to yesterday's hearings: KTVA, Channel 11.

Beginning Comment.  Question regarding legislative hearings: Are Alaska's legislative leaders keeping their collective eye on the ball: filling the oil pipeline to sustain Alaska's economy?  If so, should we be hearing more support for federal approval of Shell's 2012 Alaska OCS program, more support for federal approval of ConocoPhillips' CD-5 project, more opposition to the Fish and Wildlife Service plans to lock up ANWR's designated 1002, oil and gas production area, more support for production tax reform?   After all, if TAPS shuts down, we won't get a gas pipeline and due to a 90% drop in state revenue and resulting outmigration, we won't need much natural gas to satisfy a teenie in-state demand.  -dh

Gas Pipeline Comment.  At today's legislative hearing the Alaska Gas Pipeline  Federal Inspector willCathy Foerster, AOGCC, Alaska Gas Pipeline, Prudhoe Bay Oil Production, Alaska Oil and Gas Conservation Commission, IOGCC provide lawmakers with his view of the status of an Alaska Gas Pipeline Project (Watch streaming video, 9 a.m. AST).  Yesterday, we gave an immediate link to Yereth Rosen's breaking news article revealing TransCanada Pipeline's lack of shipper commitments.  Today, the Anchorage Daily News' Richard Mauer quotes Alaska Oil and Gas Conservation Commissioner, Cathy Foerster (NGP File Photo), as saying that, "...with oil a far more valuable commodity than gas, it makes sense to use gas to produce oil rather than sell the gas and leave oil in the ground.  That factor begins to change in the future as oil reserves dwindle, she said. The oil fields wouldn't be hurt by the 500 million cubic feet a day that would be drawn by the 24-inch instate line, she said, but the 4.5 billion cubic feet taken daily by the larger line is another matter.  But that's not a reason to shelve the project. The North Slope likely has huge natural gas fields that no one has bothered to explore because there's no market. Put in a pipeline and that would change -- and those "dry" fields wouldn't limit oil production, she said."  We believe Foerster's logic, unassailable as it is, will be used by intrastate gas pipeline advocates to justify state ownership of a local use pipeline.  -dh

From an earlier editorial: Part of the rationale politicians used for ‘spending and regulating like drunk sailors’ (apologies to the latter), was Article 8, Section 2 of Alaska’s Constitution, ordering that, “The legislature shall provide for the utilization, development, and conservation of all natural resources belonging to the State, including land and waters, for the maximum benefit of its people.” If elected leaders had defined “its people” to include their children, grandchildren and future generations, they might have considered policies designed to develop sustainable investments and jobs to support Alaska’s government and economy for the long term. Instead, when politicians wanted to spend more, tax more or regulate more, they would typically say, “We’re supposed to develop Alaska’s resources for the maximum benefit of the people and, damn it, that’s just what we’re going to do.” 

Oil Tax Comment.  

Let's Don't Use Alaska's Constitution To Justify Selfishness

by

Dave Harbour

An Anchorage Daily News Editorial writer this morning meant well and wisely said, "The state's job is to get the most value it can from its resource for the benefit of all Alaskans.  That's not a matter of discretion. That's in the state constitution."  Well, yes it is but....   But after we define who "Alaskans" are, we might reach a different conclusion than if we just assume the constitution grants this generation the right and obligation to unleash a slash and burn policy only benefitting current Alaskans.  

If we want to extract every drop of blood out of a dying turnip for tonight's family dinner, we're not looking for ways of sustaining that turnip for the kids' families.  If we do want to sustain turnip output for future generations, we'll eat a little less tonight and plant a little more in the morning.  

Put another way, we agree with the editorial writer if our job is to extract from the Alaska North Slope (ANS) every single dollar possible for this generation to spend.  But...if, as I have come to believe, our constitution demands we produce maximum natural resource benefit for this AND future Alaska generations, then we must undertake policies that weigh more heavily in favor of sustaining development for them, than for satisfying this generation's demands for cash now to spend now on me, now.

Put a final way, don't you agree that we should not let Alaska's constitution help us rationalize tax and regulatory policies that have the effect of taking sustained revenue from our kids to satisfy our greed today?  Some might still argue in favor of extracting the maximum benefit of natural resource revenue for this generation at the expense of the next.  To them, I would gently offer that such a philosophy would also justify spending the kid's college money and every future PFD check on things that I want for me to satisfy my immediate wants right now.

Come to think of it, I fear the growth of that "maximum benefit for me, now" mentality.  It is very self centered.  It ignores and disrespects the idea that one generation, through sacrifice, assures a better life for the next.  Ultimately, it is an argument for selfishness, for not giving, for not saving, for not loving, for not defending a country with one's life.  

 

(Bottom line: Won’t our children appreciate our effort to make tax and regulatory policy attractive to future investors—instead of trying to extract maximum dollars from today’s resource developers for our own use? ) 

 NPG Readers: Prepare to Comment 

Comment Against Federal Government Lockup of ANWR’s 1002 Area

Testify: Fairbanks 10-19-11, Anchorage 10-20-11
Written testimony due: 11-15-11
 

 

Categories:

Senate Investigates Gas Projects - Oil Tax Issue Is the Elephant In The Room - Point Thomson Agreement Supports Gasline

16 August 2011 6:04am

 

 

TransCanada has no firm commitments to ship gas on its proposedTony Palmer, TransCanada, AGIA, Alaska gas pipeline $40 billion gas pipeline project according to executive, Tony Palmer (NGP Photo).   See Reuters Story breaking now.  (Story by Yereth Rosen, Jeffrey Jones and Rob Wilson)  Watch the hearings:  http://www.alaskalegislature.tv/ 

 

Staying In Touch....

TODAY, the Senate Resource Committee Examines Status of TransCanada's AGIA Gasline Project (See above report) and Of Cook Inlet Natural Gas Reserves, Exploration and Development Projects.  Go Here For Information.  Below Is Yesterday's Report On the Alaska Intrastate Gas Pipeline Project--And Our Own Editorial Comments.  (Mike Prax comments in the News Miner: We would be foolish to even consider abandoning two years of effort and risk losing hundreds of millions of dollars on a project that is proceeding according to the agreed-upon plan, only to start over on the same project that we had to admit was uneconomical.)

Alaska Dispatch by Patti Epler.  The state and Exxon Mobil have reached an agreement in the years-old lawsuit over the Point Thomson oil and gas field on the North Slope, a major hurdle that needed to be crossed before a major gas pipeline could be economically viable.

ADN by Richard Mauer.    ...  Dan Fauske (NGP Photo-R), the head of the state-owned corporation, tried with his staff to answer the questions ....  "I appreciate the enthusiasm and the need to answer the questions, but you're Dave Haugen, Alaska in state gas pipeline, dan fauskenot going to answer every question in one year," he said.  ...  In a business flush with four-letter acronyms, the state corporation headed by Fauske was chartered by the Legislature to examine the Alaska Stand-Alone Gas Pipeline, or ASAP, once called the bullet line.  ... Lest anyone think that the 24-inch line is a small-scale project, Fauske's lieutenant, project manager Dave Haugen (NGP Photo), sought to correct the record.  "This project is spoken flippantly, occasionally, as being the 'little-inch guys,' or a minor project," Haugen told the committee. "This is a huge project...."

Governor Sean Parnell, Alaska governor, OCS, federal overreach, state oil taxesADN by Sean Cockerham.  Gov. Sean Parnell (NGP Photo-l) is gettingJoe Paskvan, Fairbanks, Alaska, AGIA, Alaska gas, natural resources, state senate, senator ready to renew his push to roll back Alaska's oil tax while supporters of the tax are pointing to news of increased exploration and jobs on the North Slope.   The latest report getting attention from lawmakers came from Petroleum News. It reported in an Aug. 14 article that "operators on the North Slope and nearshore Beaufort Sea are preparing for what promises to be one of the busiest exploration seasons since 1969... Fairbanks Democratic Sen. Joe Paskvan (NGP Photo) sent a statement to the press soon after the Petroleum News article first appeared. Paskvan is among the skeptics in the state Senate who blocked Parnell's tax cut.  "It appears that Alaska's tax credits under its production tax system are working to promote capital expenditures, including new exploration wells. Good news for the industry and the state, which relies upon the industry for revenues to its treasury. Exploration should mean increased oil production and increased throughput down the pipeline," he said.   *    News Miner by Rod Boyce.  Parnell, in an email from his spokeswoman, responded Saturday to Paskvan’s comments and to the Petroleum News story.  ...  Sen. Joe Paskvan, D-Fairbanks, put out a news release last week praising a recent story in Petroleum News that said 2012 could be one of the busiest in years for drilling activity on the North Slope.    

 NPG Readers: Prepare to Comment 

Comment Against Federal Government Lockup of ANWR’s 1002 Area

Testify: Fairbanks 10-19-11, Anchorage 10-20-11
Written testimony due: 11-15-11

 

Categories:

Private Fairbanks LNG Project Trumps Government Plan - Alaska Lawmakers Focus On Gas Projects

12 August 2011 3:38am

Energy Day 2011CHECK OUT ENERGY DAY, OCTOBER 15, 2011 -- CELEBRATE AMERICAN ENERGY: A GOOD IDEA FOR ALL OF NORTH AMERICA!

Crude Awakening: Money, Mavericks, and Mayhem in AlaskaWe have preordered the new book by respected Alaska Dispatch Co-Founders, Tony Hopfinger and Amanda CoyneCrude Awakening: Money, Mavericks, and Mayhem in Alaska

 

Federal Gas Pipeline Coordinator, Larry Persily (NGP Photo-r) will address Commonwealth North today: noon, ANGDA Conference Room, 411 West 4th Avenue, Yellow Sunshine Mall, Anchorage.  (More from ADN where Persily formerly served with distinction as a journalist and editor.  -dh)

Alaska State Legislature:

(Comment.  We hear from a reliable source that at a recent conference in San Antonio of the National Council of State Legislators a Member of our own Alaska State House of Representatives spoke against passage of a resolution supporting development of ANWR.  We herewith offer any legislator an opportunity to comment and correct the record.  -dh)

 

  1. Dan Fauske (NGP Photo-above) briefing, Anchorage LIO, Monday, August 15, Alaska Stand Alone Gas Pipeline Project Plan.
  2. Tony Palmer (NGP Photo-r) briefing, Anchorage LIO, Tuesday, August 16, AGIA gasline project, along with briefings on Cook Inlet Natural Gas Reserves.
  3. Larry Persily briefing, Anchorage LIO, Wednesday, August 17, status of Alaska gas pipeline project federal coordination.
  4. Our Commentary: To keep the 2/3 empty Trans Alaska Pipeline System (TAPS) operating, new oil reserves are needed.  New oil can come from federal sources like ANWR, OCS, NPR-A -- which the Obama Administration currently opposes.  New oil reserves could also come from state lands --  were the Legislature to act to improve the investment climate.  If certain legislators oppose ANWR and investment climate improvement, TAPS cannot be sustained.  If TAPS is not sustained, the state operating budget (almost 90% dependent on oil) and the entire state economy (over 1/3 dependent on oil) will fail.  If TAPS is dismantled, removed and the right of way restored (DR&R, as required by Alaska law) and Alaska returns to a pre-pipeline population, no intrastate gas pipeline from Prudhoe Bay will be required.  No big hydroelectric project will be needed.  Most state services will be dramatically curtailed.  The Permanent Fund will be dissipated.  The legislature will be managing a fiscal crisis never experienced by our citizens.  Is this logic not indisputable?   If it is, why don't legislators act of one mind to improve the state investment climate and demand federal support for robust oil and gas development on federal lands?  -dh
Fairbanks LNG Links and References

Our Earlier Story and Doug Smith Commentary

 

 
 
 
 

 

Fairbanks News Miner by Matt Buxton.  The Alaska Gasline Port Authority board of directors voted unanimously this week to pass a resolution calling for the removal of a ballot proposition directing the agency to pursue trucking natural gas into the Fairbanks area.  The decision, made Wednesday, comes in advance of a special meeting of the Fairbanks North Star Borough Assembly next week, where members will introduce and discuss an ordinance to remove Proposition 1 from the Oct. 4 ballot. ... During discussion, board member Merrick Peirce, along with many other members, applauded the private partnership.  “What’s formed is a deal that’s better than we’ve could have ever envisioned,” he said. “This opens the door for the North Pole distribution area and that’d be great.”   As the port authority abandons a plan to truck natural gas, something it has explored for about two years, it will resume its pursuit of a natural gas pipeline to connect Prudhoe Bay, Fairbanks and Valdez.   The renewed focus is strengthened by a late-July analysis, from consultant Wood MacKenzie, showing a line to Valdez would be profitable and could bring the state of Alaska $65 billion over 30 years.

Categories:

Salazar's BOEMRE Grants Shell Exploration Permit, Conditionally - Inuvik Pushes For Gas Pipe and Economic Development - Mark Hamilton Levels the Guns of Logic On Anti-development Liberals

05 August 2011 5:49am

UAA Chancellor Mark Hamilton, Dave Harbour, Make Alaska Competitive CoalitionA few minutes ago, NGP received the copy of a "Make Alaska Competitive Coalition" statement by former University of Alaska President Mark Hamilton (NGP Photo) smashing a specious contention by Senator Hollis French and Representative Les Gara (i.e. both downtown Anchorage attorneys are schooled in the art of rhetoric) that Alaska's predatory taxes are good for Alaska.   Here is the document for your weekend study.    Between Obama anti-development regulators in the Federal arena and the same mentality hindering development on Alaska lands, the state has a dismal economic outlook when it could be leading American economic recovery in so many ways.   With Alaska's economic lifeline, the Trans Alaska Oil Pipeline, 2/3 empty and and becoming more vacant at a throughput decline rate of 6% annually, investment into oil prospects on state land is essential.  Also essential, is a state tax and regulatory policy that attracts and does not repel such investment.  -dh

On the Federal side of the ledger, we calculate that Alaska has not experienced one single positive act of support for its economy or the American economy from the Obama Administration which controls access to Federal on- and off-shore lands.  Below, you'll read the 'conditional good news' that the Interior Department OCS leasing department has tentatively approved Shell's Exploration Plan for next summer.  Trick is to get a final approval in time to mobilize for next summer.  Anti-Alaska development groups are massing to oppose that approval.  A few days ago our own North Slope Borough Mayor blasted the Exploration Plan (EP).  The Pew environmental group has blasted the EP.  Shell answered Pew's blast with a factual response.  Then, we hear that in preparation for next week's trip to Alaska, an Interior Department Press Conference accepted the call of an Alaska environmental lawyer (i.e. Peter Van Tuyn) supposedly calling from a 'Montana mountaintop' blasting Alaska oil and gas development.  Pardon us if these attacks on Alaska seem just too well coordinated.  Pardon us if we remain skeptical that the Interior Department has any intention of forthrightly fulfilling the role of America's landlord by responsibly leasing and permitting exploration and development of America's natural resources.  Pardon us if we doubt the Obama Administration cares a whit about America's economic recovery or American jobs.  -dh


ADN by Richard Mauer.  Shell cleared a major hurdle Thursday in its effort Lisa Murkowski, Ken Salazar, Shell, BOEMREto begin a two-year drilling program in the Arctic Ocean next summer, receiving a conditional exploration permit from the federal agency that oversees offshore oil development.The company said it was buoyed by the morning announcement from the Interior Department's Bureau of Ocean Energy Management, Regulation and Enforcement, just as Interior Secretary Ken Salazar (NGP Photo) was preparing for an Alaska visit next week at the invitation of Sen. Lisa Murkowski (NGP Photo), R-Alaska.  ... Representatives of several environmental organizations, in a joint telephone news conference from Washington, D.C., said they were disappointed by the decision and were studying whether to challenge it in court. Erik Grafe, an Anchorage-based attorney for Earthjustice, said they had 60 days to file a lawsuit.  ... "Shell has been working to secure approval of this plan for over five years," Murkowski said in a prepared statement. "This is another positive step forward, and I'm hopeful that they will soon be able to move forward with exploration and production in the Beaufort."  She, Sen. Mark Begich (NGP Photo-r), D-Alaska, and Rep. Don Young (NGP Photo), R-Alaska, said the exploration project would create jobs and, if commercial development followed, could forestall problems with the trans-Alaska pipeline associated with declining oil flow.  ... Peter Van Tuyn, an environmental lawyer from Anchorage with the Alaska Wilderness League, phoned in to the Washington press conference from a mountain in Montana to say too little is still known about the Arctic environment to justify drilling.  


Congressman Doc Hastings, by Dave Harbour, www.northerngaspipelines.comToday,  House Natural Resources Committee Chairman Doc Hastings (NGP Photo) said, after the Department of Labor released its July jobs report: 

“The economy has shed nearly 2 million jobs since the Democrats’ failed ‘stimulus’ became law, yet President Obama’s only answer to job creation is more regulation, spending and taxes.  The House of Representatives has passed an array of bipartisan energy bills that would create over 1 million jobs, increase American energy production and lessen our dependence on dangerous foreign oil.  Unfortunately, the Democrat controlled Senate has done nothing with these bills, ignoring commonsense proposals to put millions of Americans back to work.  House Republicans will continue to look for ways to turn the economy around and create jobs while fighting off the Administration’s burdensome, job destroying regulations.”

Northern News Services by Samantha Stokell.  NNSL photo/graphicJackie Challis (NNS Photo by Samantha Stokell) started working as the town's community economic development manager at the start of July. She comes with years of experience in developing economies and tourism across the North, including a year as Inuvik's tourism co-ordinator, from 2008 to 2009.  ...  "We can't do our jobs without working together," Challis said. "My job is to promote Inuvik to people to live, to work, to invest and to visit."   Her job is also to provide support for potential economic projects such as the Tuktoyaktuk-Inuvik highway, the Mackenzie Valley Gas Pipeline and the Mackenzie Valley Fibre Optic Link.  "The pipeline is the greatest opportunity and the opportunities expand beyond the pipeline and get other businesses and visitors here," Challis said. "We're trying to bring money and people here and the road would not hurt."



Categories:

Global 'Warming' Cons From Alaska Feds?

29 July 2011 12:31pm

(You probably read it here first; the next day the AP reported it locally.  We are often first to report breaking energy news of interest to our readers--in these pages and via more immediate email alerts for the more relevant items.  More than half the time, the tip comes from an observent reader.  We lament just beginning the category "You Read It Here First", today, since these pages are filled with at least scores of such breaking news reports to our readers.  But, better late than not at all.   -dh)

Yahoo News (From our NGP Reader Rocky Dipple):  JUNEAU, Alaska (AP) — Just five years ago, Charles Monnett was one of the scientists whose observation that several polar bears (NGP Photo) had drowned in the Arctic Ocean helped galvanize the global warming movement.  Now, the wildlife biologist is on administrative leave and facing accusations of scientific misconduct.  The federal agency where he works told him he was on leave pending the results of an investigation into "integrity issues." A watchdog group believes it has to do with the 2006 journal article about the bear, but a source familiar with the investigation said late Thursday that placing Monnett on leave had nothing to with scientific integrity or the article.

Categories:

You heard about the LNG plant; what about the Agrium Plant? - Our Speech in Kenai Yesterday - Homer Gasline - Subsidy of Instate Gas?

10 February 2011 6:59am

As the LNG Plant Closes, a Nigerian investor plans to move the Kenai Agrium plant (lock, stock and barrel) to Africa!

Comment:  Until now, hope has sprung eternal that someday the Agrium plant would pop back to life with a new supply ofDave Harbour adequately priced natural gas feedstock...or that the facility could be converted to other value added benefit for the Kenai Peninsula and the Alaska economy.  But this report describes a unique project to uproot, transport and replant the Kenai fertilizer facility in Nigeria.  Operations will begin this spring and summer with the project scheduled for completion by the end of October.  It once again reaffirms that Alaskans must understand we are in a competitive world.  We may want 'value added' activity in Kenai to be sustained by a subsidized North Slope in-state gas pipeline or other pipe dreams, but a smart Nigerian investor thinks it makes more economic sense to move the facility to a place where gas feedstock is being flared into the atmosphere in huge volumes and is practically free.  Of course, some fancy operating may be required to bring the deal to reality in a country where a Petroleum Industry Bill is pending in the National Assembly, where President Goodluck Johnson is making and extending appointments to the National Petroleum Corporation and where, "youths dragged people from their cars and murdered them at illegal roadblocks in central Nigeria over the weekend, while rioters burned fuel stations and homes in the latest clashes between Christian and Muslim gangs."  Yes, we are not an island.  Yes, we must compete.  (Complete Agrium story below.)  -dh


Harbour Briefed Business Community on "Steady Barrage of Federal Attacks on Alaska's Economy"

Thanks to the kind invitation of Carol Bannock, the Kenai Chamber and ERA Airlines we had the honor of addressing members of  the Kenai Chamber of Commerce yesterday.  We urged the citizens of the Peninsula to join all dedicated Alaskans in becoming activists in support of our state's oil and gas industry.  We said the critical challenge to Alaska is filling the Trans Alaska pipeline and that next to that reality, other priorities were small.  We said that filling the pipeline required action THIS LEGISLATIVE SESSION to improve the investment climate by amending the state production tax and -- much as Alberta has done -- admitting we went too far and act decisively to cut back on the onerous tax burden placed on Alaska's most important investors.  We told our audience that federal OCS development, with revenue sharing, is one of the most immediate ways to recover the Alaska economy.  Then we emphasized again the need for citizen activism.  We reported that Governor Sean Parnell, Senator Lisa Murkowski, Senator Mark Begich, and Congressman Don Young with help from allies like Washington Congressman Doc Hastings, were united in their struggle against an overreaching federal administration that is doing everything within its power to strangle the life out of Alaska's economy.  "But they can't do it alone," we said.  They need citizens to become more involved.  We collected business cards and promised to keep our Kenai friends informed of ways in which they could become more informed, involved and active.  -dh 


The Office of the Federal Coordinator's Communications Director Jennifer Thompson wrote us that, "Last fall, our office commissioned this report by Roger Marks (NGP Photo) to look into the economic issues of a main versus in-state gas line project.   We just released it and I thought you may be interested in it."  The report, " reviews the opportunity cost to the state of a potential subsidy of a small in-state gas line vs. the option of possibly applying the same amount of state leverage to a larger mainline project."  Marks wisely concludes the report by noting, "Pipeline economics are significantly affected by economies of scale. Tariffs on smaller-diameter pipelines will be much higher than on large ones, and these differences become increasingly exaggerated with the long pipelines necessary in Alaska. It is difficult to predict significant industrial demand for North Slope natural gas, and it also is unclear how much indigenous Cook Inlet production will endure to meet most or much of local demand in the years ahead.  ... If the point of an in-state line subsidy is simply to provide lower-cost energy to Alaskans, there are other alternative subsidies that could provide energy at low prices."  (Down his complete report here.)


ADN by Becky Bohrer.  Spokesman Dave MacDowell says the scope of work determines staffing levels and Denali finished the technical and field work necessary for this portion of the project. The focus now is on negotiations with possible shippers.


Meanwhile, in Canada, the Communist-inspired and heavily networked CPJ forges ahead with its anti-development, job-killing, bureaucracy promoting agenda.  CPJ was part of the committed effort by civil society and faith-based groups that worked in solidarity with Aboriginal groups that eventually defeated of the MGP in the 1970s. 


National Parks Traveler by Kurt Repanshek.  The Denali National Park and Preserve Natural Gas Pipeline Act was introduced to the 112th session of Congress on Tuesday by Sens. Lisa Murkowski (R) and Mark Begich (D). The measure, which failed to gain passage in the last Congress, would give the Interior secretary the authority to grant a right-of-way along the George Parks Highway for construction of the gas pipeline. No officially designated wilderness would be crossed by the pipeline, according to the legislation.


More on natural gas for Homer, Alaska, from the Tribune.

As the LNG Plant Closes, a Nigerian investor plans to move the Kenai Agrium plant (lock, stock and barrel) to Africa!

Comment:  Until now, hope has sprung eternal that someday the Agrium plant would pop back to life with a new supply of adequately priced natural gas feedstock...or that the facility could be converted to other value added benefit for the Kenai Peninsula and the Alaska economy.  But this report describes a unique project to uproot, transport and replant the Kenai fertilizer facility in Nigeria.  Operations will begin this spring and summer with the project scheduled for completion by the end of October.  It once again reaffirms that Alaskans must understand we are in a competitive world.  We may want 'value added' activity in Kenai to be sustained by a subsidized North Slope in-state gas pipeline or other pipe dreams, but a smart Nigerian investor thinks it makes more economic sense to move the facility to a place where gas feedstock is being flared into the atmosphere in huge volumes and is practically free.  Of course, some fancy operating may be required to bring the deal to reality in a country where a Petroleum Industry Bill is pending in the National Assembly, where President Goodluck Johnson is making and extending appointments to the National Petroleum Corporation and where, "youths dragged people from their cars and murdered them at illegal roadblocks in central Nigeria over the weekend, while rioters burned fuel stations and homes in the latest clashes between Christian and Muslim gangs."  Yes, we are not an island.  Yes, we must compete.  (Complete Agrium story below.)  -dh


Harbour Briefed Business Community on "Steady Barrage of Federal Attacks on Alaska's Economy"

Thanks to the kind invitation of Carol Bannock, the Kenai Chamber and ERA Airlines we had the honor of addressing members of  the Kenai Chamber of Commerce yesterday.  We urged the citizens of the Peninsula to join all dedicated Alaskans in becoming activists in support of our state's oil and gas industry.  We said the critical challenge to Alaska is filling the Trans Alaska pipeline and that next to that reality, other priorities were small.  We said that filling the pipeline required action THIS LEGISLATIVE SESSION to improve the investment climate by amending the state production tax and -- much as Alberta has done -- admitting we went too far and act decisively to cut back on the onerous tax burden placed on Alaska's most important investors.  We told our audience that federal OCS development, with revenue sharing, is one of the most immediate ways to recover the Alaska economy.  Then we emphasized again the need for citizen activism.  We reported that Governor Sean Parnell, Senator Lisa Murkowski, Senator Mark Begich, and Congressman Don Young with help from allies like Washington Congressman Doc Hastings, were united in their struggle against an overreaching federal administration that is doing everything within its power to strangle the life out of Alaska's economy.  "But they can't do it alone," we said.  They need citizens to become more involved.  We collected business cards and promised to keep our Kenai friends informed of ways in which they could become more informed, involved and active.  -dh 


The Office of the Federal Coordinator's Communications Director Jennifer Thompson wrote us that, "Last fall, our office commissioned this report by Roger Marks (NGP Photo) to look into the economic issues of a main versus in-state gas line project.   We just released it and I thought you may be interested in it."  The report, " reviews the opportunity cost to the state of a potential subsidy of a small in-state gas line vs. the option of possibly applying the same amount of state leverage to a larger mainline project."  Marks wisely concludes the report by noting, "Pipeline economics are significantly affected by economies of scale. Tariffs on smaller-diameter pipelines will be much higher than on large ones, and these differences become increasingly exaggerated with the long pipelines necessary in Alaska. It is difficult to predict significant industrial demand for North Slope natural gas, and it also is unclear how much indigenous Cook Inlet production will endure to meet most or much of local demand in the years ahead.  ... If the point of an in-state line subsidy is simply to provide lower-cost energy to Alaskans, there are other alternative subsidies that could provide energy at low prices."  (Down his complete report here.)


ADN by Becky Bohrer.  Spokesman Dave MacDowell says the scope of work determines staffing levels and Denali finished the technical and field work necessary for this portion of the project. The focus now is on negotiations with possible shippers.


Meanwhile, in Canada, the Communist-inspired and heavily networked CPJ forges ahead with its anti-development, job-killing, bureaucracy promoting agenda.  CPJ was part of the committed effort by civil society and faith-based groups that worked in solidarity with Aboriginal groups that eventually defeated of the MGP in the 1970s. 


National Parks Traveler by Kurt Repanshek.  The Denali National Park and Preserve Natural Gas Pipeline Act was introduced to the 112th session of Congress on Tuesday by Sens. Lisa Murkowski (R) and Mark Begich (D). The measure, which failed to gain passage in the last Congress, would give the Interior secretary the authority to grant a right-of-way along the George Parks Highway for construction of the gas pipeline. No officially designated wilderness would be crossed by the pipeline, according to the legislation.


More on natural gas for Homer, Alaska, from the Tribune.

Categories:
Syndicate content