You Read It Here First
Yesterday, we reported on the LNG export application filed by Alaska LNG project sponsors with the Department of Energy; today, we link you to reports from two of Alaska's most prolific oil industry reporters (-dh):
Peninsula Clarion by Tim Bradner (NGP Photo). An application was filed Friday for the U.S. Department of Energy export permit for the project. North Slope producers, TransCanada Corp. and the state of Alaska asked for permission to export up to 20 million metric tons yearly of liquefied natural gas, or LNG, from Alaska, the group announced in a press release.
Alaska Dispatch by Alex DeMarban (NGP Photo). The Alaska gasline mega-project took a step forward on Friday with the state’s major oil companies filing an application with the Department of Energy to export liquefied natural gas.
TODAY'S ENERGY IN DEPTH ENERGY LINKS:
Rep. Jared Polis’ anti-HF crusade riles Colorado. Washington Times. “If he goes ahead and puts these measures on the ballot, he will be the standard-bearer of far-left green groups, clueless celebrity activists and ultrarich environmental donors who want to effectively wipe out domestic oil and gas production across Colorado and the rest of the nation,” said Simon Lomax, Denver-based spokesman for Energy in Depth.
Halliburton Names New President, Profit Rises 20%. Wall Street Journal. Halliburton Co. gave Chief Operating Officer Jeff Miller the added title of president and said he would join the oil-field services giant's board as part of its succession-planning process. The company, which also reported its second-quarter profit rose 20%, said Mr. Miller will complement the leadership of Chief Executive Dave Lesar.
GOP Senators Question IG’s Right To Probe HF. Forbes. “The Obama Administration’s insistent attempt to link hydraulic fracturing to groundwater contamination in an effort to satisfy radical activists and justify greater federal regulations on the oil and gas industry is not only improperly motivated, but it is an example of the waste and abuse of government resources that is the OIG’s very mission to expose and protect against,” the senators wrote.
The Shale Surge: $80 Billion Boom Is Reshaping North America. Market Wired. Shale zone communities have discovered yet another benefit from their surging economic growth: more of everything. Small towns like Williston, North Dakota, which has relatively little retail, are now catching the eye of major brands like Whole Foods and Trader Joe's.
How shale development fractures the Democratic Party. Washington Examiner, Editorial. The fight in Colorado could be repeated in many states with energy resources. Some voters will choose a technologically advanced nation in which each generation improves its economic lot over the last. Others will side with radical environmentalists who obsess about ridding America of all fossil fuels and even repealing the industrial revolution.
Energy infrastructure has to catch up with the shale boom. Pittsburgh Business Times. As producers continue to develop Pennsylvania's shale-gas fields, the challenge will be to develop the infrastructure necessary for moving the gas to the markets, U.S. Department of Energy Secretary Ernest Moniz said Monday.
Natural gas emits half the GHGs of coal over its lifetime – analysis. E&E News (sub. req’d). When it comes to life-cycle greenhouse gas emissions, natural gas -- whether or not it was extracted using conventional methods -- has about half the climate impact of coal, according to an analysis published yesterday in the Proceedings of the National Academy of Sciences.
Shale plays reduce political risk: Kemp. Reuters, Column. Unlike a conventional oil field, shale plays can be scaled up or down more quickly in response to changing perceptions about risk and return. If the political environment becomes less favourable, the drilling programme can be halted or scaled back. In that sense, the capital commitment required by a shale play is less "lumpy" and therefore less risky.
Shale's social license. Oil & Gas Journal. The newfound abundance of oil and gas unlocked by the shale revolution has yielded increased public scrutiny of the oil and gas industry in the US, bringing with it a host of new challenges and opportunities for constructive collaboration.
Corralling Carbon. New York Times. Even the abundant natural gas unleashed by fracking, while cleaner than coal, is a major source of greenhouse gases. Ultimately, many scientists say, those emissions will need to be trapped and stored, too.
Shale reserves in the North West 'worth £10bn'. BBC. Shale gas reserves in part of the North West could be worth £10bn to the economy and support up to 3,500 jobs, a report has claimed. The figures are based on extracting five trillion cubic feet of gas at 30 sites in Merseyside, Greater Manchester and Cheshire between 2017 and 2031.
Is Russia funding Europe's anti-fracking Green protests? Washington Examiner, Op-Ed. That’s the conclusion NATO Secretary General Fogh Anders Rasmussen drew in an explosive speech in London last month, where he said Russia “engages actively with … environmental organizations working against shale gas, obviously to maintain European dependence on imported Russian gas.”
Opponents Renew Call for South African Shale Halt. Bloomberg. A South African environmental group renewed its call for a moratorium on shale-gas fracking, as the government moves closer to a decision on whether to allow the process opponents say imperils water quality.
Questions raised over viability of shale. Belfast Telegraph. Scientists for Global Responsibility (SGR) and the Chartered Institute of Environmental Health reviewed evidence across several issues linked with shale gas extraction by hydraulic fracturing.
La Habra Heights residents form group to fight drilling proposal. Whittier Daily News. McCaskey also said that oil drilling is not new in La Habra Heights. Oil production on the Southern California Gas Co. property dates back to 1912, according to city records. And there are 180 Occidental Petroleum Corp. active wells in the city, according to state records, he said.
Drill into facts in debate over HF. Loveland Reporter-Herald, Editorial. This debate should focus on facts that can be independently verified. That way, voters are more likely to have the best opportunity to study any proposals and reach informed decisions.
HF initiatives are unnecessary. Sterling Journal-Advocate, Column. I'll be the first say that fracking has its dangers. But the same can be said for any industrialized process that creates jobs and makes modern life possible. But the proposed anti-fracking initiatives do nothing to change that and are completely unnecessary. Just vote no.
Corps of Engineers raises questions about St. Tammany HF permit. New Orleans Times-Picayune. The Army Corps of Engineers has raised concerns about a proposal to frack for oil near Mandeville, stating among other things that steps to avoid wetlands impacts have not been taken and noting other possibly less problematic drilling sites have not been considered.
Race for North Dakota's ag commissioner is all about oil. Reuters. With a legislature that meets only every two years, North Dakota has given an unusual amount of power to the agriculture commissioner and two other members of the state's Industrial Commission, charging the triumvirate with oversight of permitting and other issues critical to the oil industry.
In N.D., oil and gas transformation runs deep. E&E News (sub. req’d). Since 2010, oil production has quadrupled in North Dakota, with more than 8,000 wells drilled. The state collected $4 billion in oil taxes from July 2011 to June 2013, projects a $1 billion surplus for the current biennium and is looking to bring in workers for an abundance of industry-related jobs.
Energy secretary faces questions. Pittsburgh Post-Gazette. Prolific natural gas production from the Marcellus Shale in Pennsylvania and oil from the Bakken Shale in North Dakota has upended the traditional flow of oil and gas as new areas become hubs for fuel supplies, U.S. energy Secretary Ernest Moniz said Monday at Carnegie Mellon University.
Corbett touts long-lasting effects of drilling. Washington Observer-Reporter. “Engineers have figured out how to (drill for gas) and do it safely,” Tom Corbett said Monday morning. “Marcellus Shale has had an impact, and the young engineers will someday look back and see what they did. This is important not just for us, but for generations – plural.”
DEP: Operations can impact water supplies. Pittsburgh Post-Gazette. “Before our members begin well development activities, exhaustive baseline water sampling is conducted by certified third parties, which frequently extends beyond state requirements,” Mr. Creighton said, adding that the baseline testing gives homeowners important water quality and public health-related information.
Still Even Split. Associated Press. New Yorkers appear solidly entrenched — and nearly evenly divided — over whether natural gas hydraulic fracturing ought to be allowed in the state, according to an opinion poll released Monday by the Siena College Research Institute.
Gas pipeline issues challenge for producers, users. Tribune Live. A decade into the “shale gas revolution,” the pipeline issues remain as surging production makes distribution a challenge.
Group seeks full disclosure of chemicals. Associated Press. A group of doctors is demanding full public disclosure of chemicals that would be used to drill for natural gas by hydraulic fracturing in western Maryland.
Furor over gas pipeline not unique to Lancaster County. Lancaster Newspapers. The issues that have surfaced since a proposed 35-mile natural gas pipeline was announced in March in Lancaster County are hardly unique. Take Nelson County, Virginia, a largely rural area in central Virginia where residents and public officials learned in late May of a planned 450-mile natural gas pipeline that would run through their properties.
Businesses Benefit From Shale Boom. Columbus CEO. It may seem like a stretch to say Honda is part of Ohio’s shale-gas boom. But a close look shows that the automaker is using the steady supply and low price of natural gas to improve its bottom line at plants in Marysville and East Liberty.
Think regionally to link energy policy with economic development, report urges. Columbus Business First. The Mid-Ohio Regional Planning Commission is advocating the 12-county Columbus region work together to more efficiently handle energy policy, from infrastructure to job training. “We view this plan as a way to connect energy to the economic success of the region,” said Christina O’Keeffe, director of energy and air quality at MORPC.
Denton HF ban won't solve the problem, mayor says. Dallas Business Journal. Regardless of whether Denton voters decide to ban hydraulic fracturing within city limits on Nov. 4, that won’t solve the real problem: Vested rights of oil and gas companies to re-drill old wells, Mayor Chris Watts said.
New oil train rules likely to have wide reach. Houston Chronicle. Transportation Secretary Anthony Foxx suggested Monday that coming mandates to boost the safety of hauling oil by train will take a comprehensive approach, going beyond requiring changes to the tank cars that carry crude across the country.
Eagle Ford task force to meet in San Antonio. San Antonio Express-News. The meeting will focus on local and statewide water issues. It will include a panel discussion and talks by SAWS President and CEO Robert Puente and State Rep. Doug Miller, R- New Braunfels.
Don't let delay derail needed air actions in Pinedale. Casper Star-Tribune, Column. The state has an opportunity here to show its leadership on a critical air quality issue. Solving the Pinedale problem will show that state government is the home of strong, smart rules, and once again put the state regulators in the driver’s seat, not EPA.
The 17 billionth barrel of Alaskan North Slope crude started down the Trans Alaska Pipeline System (TAPS) this past weekend on Saturday, July 19, 2014. “This is an operational milestone and legacy that we are all proud of,” said Tom Barrett, President of Alyeska Pipeline Service Company (NGP Photo).... (More here....)
We trust that Chris Smith (NGP Photo, Assistant Secretary for Fossil Fuels), who knows Alaska well, will contribute to the rendering of a rapid and just decision. Current world crises have likely exacerbated the need for increased supplies of gas from reliable sources. See Governor Sean Parnell's (NGP Photo) statement here. -dh
CBC by Lee-Anne Goodman, CP. And no visit to the Nunavut capital would be complete without stopping in at Iqaluit Enterprises to take home some truly delicious smoked or fresh Arctic char.
TODAY'S Consumer Energy Alliance energy news links:
ICOSA Magazine: ENERGY 101 – PEOPLE BEHIND ENERGY *Shawn Martini Interview
Our Energy contributor and co-host, Emily Haggstrom talks with Shawn Martini, Communications Director for Consumer Energy Alliance. Consumer Energy Alliance represents energy consumers in the debate over energy policy, and advocates for increased domestic production of all forms of energy, from renewables like solar and hydro-electric to traditional forms of energy including oil and gas.
CBS News: GOP: Democrats “hold out economy hostage” by blocking jobs bills
Expanding domestic energy production is the "best way" to invigorate the American economy, incoming House Majority Whip Steve Scalise, R-La., said Saturday in the weekly Republican address, but the "Democrats running Washington don't seem to get it."
LA Times: Maine town fights plan to use pipeline to export oil sands crude
On Monday night, the South Portland City Council, including Blake, is expected to pass an ordinance that would prevent the export of crude oil from the waterfront. The product of a relentless 18-month campaign by residents and Maine environmental groups, the measure is a response to plans by Portland-Montreal Pipe Line, or PMPL, to reverse the flow of its import pipeline in order to export oil sands crude from Canada, the same petroleum that would run through the controversial Keystone XL pipeline in the Great Plains.
Reuters: Oil trains, born of U.S. energy boom, face test in new safety rules
North Dakota's Bakken oil patch has thrived thanks in large part to the once-niche business of hauling fuel on U.S. rail tracks. New safety rules may now test the oil train model. Within weeks, the Obama Administration is due to unveil a suite of reforms that will rewrite standards conceived long before the rise of the shale oil renaissance, at a time when crude rarely moved by rail and few Americans had ever seen the mile-long oil trains that now crisscross the nation.
Bloomberg BNA: States Likely to Need Extensions to Complete Power Plant Emission Plans, McCabe Says
Most states are likely to need additional time to submit their implementation plans for meeting carbon dioxide reduction targets for existing power plants, beyond the one-year time frame outlined in President Barack Obama's climate action plan, the Environmental Protection Agency's top air official said July 17.
The Hill: Week ahead: Climate regs back under the microscope
A cornerstone of President Obama’s assault on climate change will be back in the spotlight next week, when senators are set to grill the administration’s top environmental official on plans to impose new limits on power plant emissions. Environmental Protection Agency (EPA) Administrator Gina McCarthy will appear Wednesday before the Environment and Public Works Committee
Fuel Fix: Feds OK first-in-decades oil studies off East Coast
The Obama administration on Friday gave the oil industry the green light to use air guns and sonic sensors to search for possible oil and gas under Atlantic waters, overriding environmentalists concerned that the seismic research can harm whales and other marine life.
Columbus Dispatch: U.S. OKs plan to open Atlantic to oil surveys
The Obama administration approved a plan on Friday that would allow companies to assess oil resources off the Atlantic Coast, angering environmental groups worried that the plan will harm marine life and open the door to offshore drilling.
Miami Herald: Carolinas opinion mixed on offshore drilling
The Obama administration on Friday opened the Eastern Seaboard to offshore energy exploration, causing concern in the Carolinas about the effect on sea creatures and tourism but also raising the prospect of new jobs and revenue.
Wall Street Journal: Shale Reshapes Petrochemicals Business
GlobaData flagged the competitive advantage that U.S. companies will receive from the lower cost provided by shale gas. And this opportunity is attracting investment from some of the industry’s bigger names.
The New York Times: Frack Quietly, Please: Sage Grouse Is Nesting
In a new oil field among the rolling hills near here, Chesapeake Energy limits truck traffic to avoid disturbing the breeding and nesting of a finicky bird called the greater sage grouse. To the west, on a gas field near Yellowstone National Park, Shell Oil is sowing its own special seed mix to grow plants that nourish the birds and hide their chicks from predators.
Associated Press: Great Plains shale tested for possible energy uses
Tests this summer on Pierre Shale that stretches across much of the Great Plains could help build the case for an underground lab and, if feasible, lead to energy production or underground storage.
Associated Press: Central Nevada oil lease sale staged under protest.
A U.S. Bureau of Land Management sale of oil and gas leases on public land in central Nevada has been conducted under protest.
POLITICO: Rep. Polis “miscalculation” on HF issue could threaten political ascent
For more than a decade, Polis’s political guesses and gambles have all been right. But his decision to force a fight over oil and gas drilling in a tough election cycle may be a big enough miscalculation to derail Polis’s planned ascension up the Washington ranks. “He’s very focused, but sometimes he can be so laser focused that sometimes he lacks peripheral vision,” Palacio told me.
Roll Call: Renewable shale?
The Energy Department is spending $31 million to move forward with hydraulic fracturing to produce electricity from rocks.
Denver Post: "Tea Party of the Left" wages ferocious battle over HF
He and his like-minded allies have a new, unflattering label, the Tea Party of the Left. Also known as "fracktivists," the group, like their conservative counterparts, is sworn to certain principles — even if those beliefs cost their side of the aisle the election in November.
The Times Tribune: Gulf Oil plans LNG facility in Great Bend
An oil company with Pennsylvania roots plans to have a liquefied natural gas facility up and running in Susquehanna County by the end of 2015. The Great Bend facility would accept natural gas from Williams’ Windsor-Montrose-Washington gathering line and compress it for storage and delivery as a liquid, according to a petition the company, Gulf Oil LP, filed with the Federal Energy Regulatory Commission in April.
WUNC: Public Will Be Able To Comment On NC’s HF Rules
The North Carolina commission that is drafting rules for hydraulic fracturing will host public comment hearings next month.
Allentown Morning Call: Pennsylvania, U.S. benefit from drilling
It's a not a "claim" that shale supports tens of thousands of good-paying jobs — it's a fact. Countless economic studies, from the state Department of Labor & Industry, to the federal Bureau of Labor and Statistics, to many other independent reports, including from IHS Global, confirm these benefits.
Scranton Times-Tribune: DRBC gas pains
Pennsylvania is blessed with abundant water resources, and it belongs to five separate commissions that do important work across a variety of watersheds. The state budget this year singles out only one of those commissions, the Delaware River Basin Commission, for a massive budget cut of more than 50 percent.
San Antonio Express-News: Texas jobless rate holds at 5.1%
Alcantar said every sector has expanded over the last 12 months. Mining and logging, which includes jobs in oil and gas, led the way with a 7 percent annual growth rate.
FOR IMMEDIATE RELEASE
JULY 21, 2014
Export Application Filed with U.S. Department of Energy for Alaska LNG Project
ANCHORAGE, Alaska – In another important step forward for the Alaska LNG project, an application to export liquefied natural gas (LNG) was submitted to the U.S. Department of Energy.
The export application requests authorization to export up to 20 million metric tons per year of LNG for a period of 30 years to countries that have existing free trade agreements with the U.S., as well as to non-free trade agreement countries.
“This is a significant milestone for the Alaska LNG project and demonstrates continued progress toward developing Alaska’s resources,” said Steve Butt, senior project manager. “Filing of an export application is a critical step in commercializing North Slope natural gas.”
The Alaska LNG project would provide significant economic benefits to Alaskans including state revenues, new job opportunities and access to decades of domestically produced natural gas for homes and businesses in Alaska.
According to a study by NERA Economic Consulting, submitted in support of the application, the Alaska LNG project would have “unequivocally positive” economic impacts in Alaska and the United States. The Alaska LNG project is anticipated to create up to 15,000 jobs during construction and approximately 1,000 jobs for operation of the project.
The proposed project facilities include: a liquefaction plant and terminal in the Nikiski area on the Kenai Peninsula; an 800-mile, 42-inch pipeline; up to eight compression stations; at least five take-off points for in-state gas delivery; and a gas treatment plant located on the North Slope.
The Alaska LNG project participants are the Alaska Gasline Development Corporation (AGDC) and affiliates of TransCanada, BP, ConocoPhillips, and ExxonMobil. The project is now in the pre-front-end engineering and design phase, which is expected to be completed in 2016. For more information on Alaska LNG, visit ak-lng.com.
# # #
Miles Baker BP Press Office
Alaska Gasline Development Corporation 907-564-5143/907-301-8726
Natalie Lowman Kim Jordan
ConocoPhillips Alaska ExxonMobil Media Relations
TransCanada Media Relations
Estimates, expectations, and business plans in this release are forward-looking statements. Actual future results, including ultimate recoveries, actual export volumes, and project plans, costs, and schedules, could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil and gas price levels; political or regulatory developments; reservoir performance; timely completion of development projects; technical or operating factors; and other factors discussed under the heading "Factors Affecting Future Results" in the Investors section of our website (www.exxonmobil.com) and in Item 1A of our most recent Form 10-K. The term "project" as used in this release does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment reporting.
This release contains statements that are forward-looking statements and involve risks and uncertainties. It is believed that the expectations reflected in these statements are reasonable, but actual results may differ from those expressed in such statements, depending on a variety of factors, including: the specific factors identified in the discussions accompanying such forward-looking statements; industry product supply; demand and pricing; political stability and economic growth in relevant areas of the world; development and use of new technology and successful commercial relationships; the actions of competitors; natural disasters and other changes in business conditions; and wars and acts of terrorism or sabotage.
This release includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results or the industries or markets in which we operate or participate in general. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict such as oil and gas prices; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations or from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips’ business and other economic, business, competitive and/or regulatory factors affecting ConocoPhillips’ business generally as set forth in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC). We caution you not to place undue reliance on our forward-looking statements, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information.
Use of non-GAAP financial information – This presentation may include non-GAAP financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any non-GAAP measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure in an appendix.
Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We use the term "resource" in this presentation that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.
FORWARD LOOKING INFORMATION
This publication contains certain information that is forward-looking and is subject to important risks and uncertainties (such statements are usually accompanied by words such as “anticipate”, “expect”, “would”, “believe”, “may”, “will”, “plan”, “intend” or other similar words). Forward-looking statements in this document are intended to provide TransCanada security holders and potential investors with information regarding TransCanada and its subsidiaries, including management’s assessment of TransCanada’s and its subsidiaries’ future financial and operational plans and outlook. All forward-looking statements reflect TransCanada’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. TransCanada undertakes no obligation to update or revise any forward-looking information except as required by law. For additional information on the assumptions made, and the risks and uncertainties which could cause actual results to differ from the anticipated results, refer to TransCanada’s Quarterly Report to Shareholders dated May 1, 2014 and 2013 Annual Report on our website at www.transcanada.com or filed under TransCanada’s profile on SEDAR at www.sedar.com and with the U.S. Securities and Exchange Commission at www.sec.gov.
ALASKA GASLINE DEVELOPMENT CORPORATION
As an instrumentality of the State of Alaska, the Alaska Gasline Development Corporation (AGDC) is not subject to oversight by the U.S. Securities and Exchange Commission. However, AGDC notes that all forward-looking statements reflect AGDC’s beliefs and assumptions based on information available at the time the statements were made and as such are not guarantees of future performance. Readers are cautioned not to place undue reliance on this forward-looking information, which is given as of the date it is expressed in this news release, and not to use future-oriented information or financial outlooks for anything other than their intended purpose. AGDC undertakes no obligation to update or revise any forward-looking information except as required by law.
CBC. The price of houses in Inuvik has dropped by 10 to 15 per cent in the last three years — ever since plans for the Mackenzie Valley Pipeline were set aside, according to a local realtor..., Jim Weller ... with Coldwell Banker....
|Petroleum News. Parnell names municipal advisory board. Alaska Gov. Sean Parnell has named members of the Municipal Advisory Gas Project Review Board...|
Petroleum News. BC's LNG list grows. British Columbia's lineup of LNG proposals has grown to 15 with U.S.-based WesPac Midstream requesting a 25-year export license from the National Energy Board to ship up to 3 million metric tons a year to customers in Asia, the U.S., Central America and South America. In entering the public arena, W....
Energy Voice. In an op-ed penned for The Hill, Michael Whatley, Executive Vice President at Consumer Energy Alliance (NGP Photo), explains how South Dakota’s Sen. Tim Johnson (D) now has opportunity to move the Keystone XL pipeline one step closer to construction.
U.S. Sen. Lisa Murkowski (NGP Photo), met today with Commerce Secretary Penny Pritzker on the issue of crude oil and condensate exports:
“I appreciate Secretary Pritzker taking the time to meet with me today." she said after the meeting. "We had an open conversation about the Commerce Department’s approach to the question of U.S. oil exports. I am encouraged that Secretary Pritzker is engaged and that there are ongoing discussions within the department on this issue.
|Wall Street Journal. More than 150 executive branch nominees are awaiting Senate confirmation, but Harry Reid is attending to his personal priorities. On Tuesday the Majority Leader pushed through a vote on Norman Bay to helm his sovereign government province, the Federal Energy Regulatory Commission. (Senator Murkowski has vigorously opposed the President's intention to name Bay chairman of this regulatory body, so important to Alaska and US energy policy and regulation in general. -dh)|
Murkowski is the senior Republican on the energy panel. Last January, she released a white paper on the need to revamp U.S. energy export policy. Murkowski has also published five staff reports on crude oil and condensate exports, which are available on the energy committee’s website.
*** U.S. HOUSE OF REPRESENTATIVES MEDIA ADVISORY***
Fisheries, Wildlife, Oceans & Insular Affairs Subcommittee to Hold Legislative Hearing on Four Bills, including two affecting Alaska.
WASHINGTON, D.C. – The House Natural Resources Subcommittee on Fisheries, Wildlife, Oceans and Insular Affairs will hold a legislative hearing on Wednesday, July 23rd on four bills.
Subcommittee Fisheries, Wildlife, Oceans & Insular Affairs legislative hearing on:
Wednesday, July 23, 2014
1334 Hearing Room in the Longworth House Office Building
Visit the Committee Calendar for additional information, once it is made available. The meeting is open to the public and a live video stream will be broadcast at http://naturalresources.house.gov/live.
Did You Read It Here First? Last Night The Globe & Mail Posted News Involving A Relationship Between One of Canada's Greatest Pipeline Companies And The Alaska Gasline Development Corporation.
|Globe & Mail by Shawn McCarthy.
Enbridge Inc. is turning its eyes north to Alaska, entering talks with the state to build an $8-billion (U.S.) natural gas pipeline there if a competing project falters.
The Calgary energy company and the state-owned Alaska Gas Development Corp. (AGDC) “are undertaking substantive and exclusive discussion” which would see Enbridge become the builder and operator for the 1,163-kilometre pipeline. It would carry natural gas from the North Slope to Fairbanks and other communities in southern Alaska.
ADN Opinion Editorial, by Rex A. Rock Sr. (NGP Photo), Aaron Schutt, Sophie Minich, Helvi Sandvik, Jason Metrokin, Gail Schubert.
Many Alaskans may wonder why six of the largest Native corporations have united behind the effort to defeat Ballot Measure 1. Those who know little about us might assume it’s because some of the coalition members have business interests aligned with the oil industry. But that is too simple an answer. We did not enter into this conversation lightly.
As First Alaskans, our people have learned for generations to use and protect the resources that surround us. We have learned that to provide for future generations – for tomorrow’s children to have the same opportunities we enjoy – hard decisions must be made today.
We have listened carefully to the debate surrounding tax reform and weighed its benefits and drawbacks. We have also allowed ourselves the time to determine if the oil industry’s promises of increased investment were genuine. Some of our businesses are in the oil industry and some are not. What we have seen is an increase in investment into our oil industry, aimed at getting new oil in the pipeline. While that may be good for some of our businesses, it is good for all Alaskans. Our corporations collectively employ thousands of Alaskans and our employees support small Alaska businesses and the overall economy. New investments increase our opportunity to put new oil in the pipeline. Extending the life of our oil fields translates into continued contributions to our state treasury and the services the state provides to Alaskans for the long-term.
See the LNG Project's Public Meeting Schedule here. News Miner Story: Gasline Advisory Board
Respecting both "Due Process" and the “Duty to Consult"
Canada's "Duty to Consult" (1,2) and America's similar concept are not and should not be just legal requirements for natural resource companies. Consultation is a basic principle of good communications, responsible corporate citizenship, or, at the least, enlightened self interest.
We have known and respected the work of Bill Gallagher (NGP Photo) for over 20 years.
A serious, fair minded man, he was one of the first counselors to begin publicly speaking about the importance of Canadian project managers communicating in good faith with local stakeholders.
Of his book (NGP Photo with our Alaskan Anaktuvuk Masks), “Resource Rulers: Fortune and Folly on Canada’s Road to Resources”, Bill says his is, "the definitive book tracking the rise of Native empowerment and their remarkable legal winning streak in the Canadian resource sector. Understanding the Native interconnections, eco-activist linkages, and government responses is essential for planning successful resource strategies."
To consult, cooperate and communicate with the public in general and stakeholders specifically, is a responsibility to shareholders and the obligation of a responsible project manager -- as we have discovered in both Alaska and Canada.
In short, project consultation with all relevant parties is as important to the success of an investor's project as good design, engineering and construction.
Corporate managers who fail to embrace this reality will be more likely to take superbly engineered project blueprints to their graves than to ribbon cutting ceremonies.
On the flip side, stakeholders who take advantage of project managers through intimidation or by making unreasonable demands can, likewise, kill projects that would otherwise sustain local, regional and even national economies and families.
Thus, an effective process of consultation can only work well in an honestly regulated environment where the government and all parties respect due process and the rule of law is faithfully upheld.
We would add this opinion.
Good project managers should always consult with local stakeholders. The relatively little time and money spent in demonstrating friendship, open communication and good corporate citizenship ultimately saves shareholder dollars and minimizes dispute.
However, when the common sense requirement of good communication becomes a legal "duty" (i.e. applied differently in the US and Canada) complete with years of court precedent, two phenomenon may begin to occur. First, investors can become tempted to invest minimally in good communication and for the primary purpose of meeting the letter of the law. Second, distant stakeholders, like environmental and social activists may attempt to use the legal "duty" of consultation as a tool to delay or block projects for political, fundraising or other reasons.
In Alaska's case, the Pebble Partnership mining project has provided jobs and economic support to local communities while investors develop a mining plan upon which it can base future permit applications. Though the project did not labor under a "duty to consult" law exactly like Canada's, it did recognize that surviving a challenging permit process would require local stakeholders to be both knowledgeable about and beneficiaries of the project. The project's public outreach program has been exceptionally executed.
The permit process to follow, would then allow public comment on each phase of the project as it pursued the permitting requirements. A final decision on the permit applicant's project would be based on an objective review by regulators of the record of evidence collected from filings and testimony. That decision, in turn, can be administratively appealed or appealed through the court system. This is known as "due process", a key provision of America's 'Rule of Law', memorialized in the 5th and 14th Amendments of the US Constitution.
The Pebble mining project would occur on Alaska state lands leased to the partnership. But after one lodge owner began spending millions of dollars to oppose the project -- in concert with environmental activists and some local residents -- the Environmental Protection Agency (EPA) stepped in and is now in process of attempting to preemptively block the project. No application exists, nor does a record of decision based on an application; and, the potential applicant holding valid Alaska state leases is denied an opportunity to appeal a decision on an actual application based on a record.
The EPA rational is based on grounds that the project could cause environmental harms that it imagines will occur even before the project has filed for a permit and been allowed its constitutional right of due process.
But if the EPA can preemptively strike down a mining project without allowing it due process, no highway, oil and gas, municipal utility, agricultural, transportation or commercial fishing project is safe from a preemptive, arbitrary and/or capricious government shutdown.
Yes, we strongly support local stakeholder consultation by project investors. We also caution our fellow citizens that to properly balance opposing viewpoints, an impartial government regulator is essential.
If citizens either in Canada or the United States perceive that regulatory authorities do not base decisions on an objective legal record achieved through due process, the rule of law itself is jeopardized.
When the rule of law disappears, civilization devolves into a chaotic state wherein "Might Makes Right", as the Romans found in the 5th Century and as Germany taught the world in the 1930s through WWII.
We hope that alert citizens throughout North America will choose to support good communication and win-win outcomes between natural resource wealth producers and local citizens.
But we acknowledge that this will not be possible without courts of law, legislative bodies, presidents and prime ministers who are able to overcome political temptations and consistently support the rule of law -- and the due process upon which it depends -- to produce just and reasonable decisions.
In that way, perhaps we can pass down to our children a society that rests on solid, ethical standards demonstrating that, indeed, "Right Makes Might".
Predecessors, like Abraham Lincoln (NGP Photo), passed that legacy to our our later generation when he said in the great Cooper Union Address, "Let us have faith that right makes might, and in that faith, let us, to the end, dare to do our duty as we understand it."
If we and our leaders properly discharge our Constitutional obligations as we understand them, perhaps our children will look back and say of our generation that, "They protected for us, the great legacy of the rule of law, wherein doing the 'right' thing makes a country 'mighty'."
Yes the duty to consult with one another is both right and good business. But even more important is the duty to maintain a nation and society of well observed laws and the protection of due process.
Thanks to BP's Julie Hasquet, we hear that the Alaska LNG/Pipeline project will provide community project briefings next week (i.e. very timely with respect to our commentary today.)
We encourage our NGP readers to attend one of these community meetings to learn more about the Alaska Liquefied Natural Gas (LNG) project.
6-8 p.m., Tuesday, July 15
William A. Egan Civic & Convention Center
6-8 p.m., Thursday, July 17
Wedgewood Resort - Gazebo Room
The Alaska LNG team will provide a project overview and share information about current studies. It will be an opportunity to both hear about and comment on the project.
Happily, sponsors will provide refreshments.
We encourage all of our readers -- throughout the country -- to comment as well by the July 31 deadline! Here's how.
In her letter of July 8, 2014, Senator Giessel wrote:
Ms. Kelly Hammerle
Five Year Program Manager
381 Elden Street
Herndon, Virginia 20170
Dear Ms. Hammerle:
Alaska is fortunate to be an important contributing part of our nation’s leading role in global oil and natural gas production. Our nation has the opportunity to continue to be an energy leader if the Bureau of Ocean Energy Management (BOEM) adds currently unavailable offshore areas, such as Alaska, the Atlantic, and the Gulf of Mexico to the upcoming 2017-2022 Five Year Plan.
These additions would further boost our nation’s economic and energy security as well as create much needed tax revenue. Alaska has experienced the continued benefit of increased jobs and revenue from oil and natural gas development, and I believe that every state with these natural resources should have the opportunity to benefit from the same economic gain. Equally important, as part of the United States of America, other states should be contributing to our nation’s economic and energy growth and not remain stymied by policy barriers.
I am a strong supporter of protecting our environment; Alaska, with its refined application and permitting process, is an example that oil and natural gas can be developed in a way that protects both people and its ecosystems. Therefore, I am confident that energy companies and other states will utilize the same best practices, standards, and regulations that are in place to safely develop offshore oil and natural gas resources.
I applaud our Congressmen for passing a bi-partisan bill, the “Lowering Gasoline Prices to Fuel an America That Works Act” to support offshore oil and natural gas development and support whatever means are available to move this economic opportunity forward.
I would appreciate your consideration and urge BOEM to include currently unavailable offshore areas, such as Alaska, the Atlantic, and the Gulf of Mexico in the upcoming 2017-2022 Five Year Plan. We must continue to generate jobs and revenue to rejuvenate our nation’s economy and decrease our reliance on foreign energy sources.
Senator Cathy Giessel
|World Energy, by George Backwell. ...a fraction of natural gas projects ... will become reality as high costs and weakening gas prices....|
Alaska Dispatch, by Brigham McCown.
As political shenanigans continue to delay approval of the Keystone XL pipeline, Alaska voters hold the key to avoiding a similar fate for what could be North America’s largest pipeline project (i.e. Natural gas pipeline).
Washington Examiner by Mark Tapscott. Another scientist has more bad news for global warming advocates who claim that Americans are killing Arctic Polar Bears.... *** Professor Matthew Cronin (NGP Photo) of the University of Alaska at Fairbanks studied the genetic histories of the three bear species, brown, black and polar (NGP Photo). *** What Cronin found casts significant new doubt about claims that the furry white monsters of the Arctic are soon going to be extinct if America doesn't stop causing global warming by burning fossil fuels. *** Cronin has been studying animal genetics for 25 years and his latest study will be made public in a paper to be published shortly in the online Journal of Heredity, according to UAF's Nancy Tarnai. (See a related article)
Fuel Fix. American Energy Partners said Monday it plans to spend $4.25 billion to expand into Texas and West Virginia for the first time and to snap up more land in Ohio.
The three announced acquisitions are the latest — and the most expensive — in a series of moves by Aubrey McClendon (NGP Photo), one of the first wildcatters to capitalize on the U.S. shale boom, to rebuild his empire after he relinquished his perch at the top of Chesapeake Energy last year.
From the National Ocean Policy Coalition: The U.S. Arctic Research Commission's daily update (last week) included an announcement by the White House Office of Science and Technology Policy and the National Ocean Council that former Alaska State Rep. Beth Kerttula has been selected to serve as National Ocean Council Office (NOC Office) Director. Kerttula replaces Dr. Brad Moran, who has been serving as Acting NOC Office Director since November 2013. Coverage of the announcement includes articles in the Alaska Daily Dispatch,Anchorage Daily News, and KTOO News. KTOO reports that Kerttula will serve as NOC Office Director for one year, with an option to remain through the remainder of the Obama Administration.
Calgary Herald, by Stephen Ewart. The military crisis in Ukraine has brought into focus Europe's dependence on Russian natural resources for 30 per cent of its energy requirements just as Prime Minister Stephen Harper is in Europe for the G7 Summit and the D-Day anniversary events Friday in Normandy.
With coercion of Russian oil supplies deemed "unacceptable" by political leaders in Europe this week, it appears crude from Canada's oilsands has become much more acceptable.
Consumer Energy Alliance (CEA) tells us that last Thursday, CEA-Florida joined PACE for the Gulf Coast Energy Forum in Mobile, Alabama during which executives from five southern utilities raised concerns about the EPA’s new rules on carbon emissions for existing power plants. As Alabama.com noted, one of the biggest concerns highlighted by the executives was the rule’s effect on the energy mix and the likely dependence on natural gas that will result.
The Daily Caller: EPA Rules To ‘Necessarily Skyrocket’ U.S. Electricity Prices
U.S. electricity rates are set to rise more than 10 percent by 2020 because of onerous federal environmental regulations on coal-fired power plants, according to an analysis by American Action Forum. This means consumers could be forced to pay $150 more each year for electricity due to Obama administration power plant regulations.
E&E News: “The United Mine Workers of America is blasting the Obama administration's new proposal for controlling greenhouse gas emissions from existing power plants, which will likely contribute to the loss of coal mining jobs. "The UMWA has not and does not dispute the science regarding climate change," Cecil Roberts, the group's international president, said in a statement this afternoon. "Our dispute is with how our government is going about addressing it, and on whom the administration is placing the greatest burden in dealing with this challenge," he added. Roberts said the rule would lead to "long-term and irreversible job losses." The union says it calculated the potential direct coal generation job losses at 75,000 by 2020.”