12-31-11

ADN/AP.  Three independent oil and gas companies are drilling new wells and another independent submitted more than 90 bids in a near-record Cook Inlet lease sale in June, the Peninsula Clarion reported Friday. The increased exploration is creating business for the companies that support the oil and gas explorers. Those businesses do everything from drill wells to dispose of waste. Al Hull, from Petroleum Equipment & Services, Inc., said his outfit has felt the increased demand. "This is the busiest I've seen it in a long time," he said.  

Fairbanks News Miner, by Dorthy Chomicz.  A state panel has determined the value of the trans-Alaska oil pipeline to be $8.6 billion for 2011, up from a previous figure of $7.9 billion. The increased assessment will mean more money from the pipeline for the Fairbanks North Star Borough (NGP Photo, 10-5-11, Fairbanks Pick-up.  Comment: We use this photo to remind ourselves that the way to sustain the TAPS economic lifeline is to bring on new production from ANWR, NPR-A, Arctic OCS and from less oppressive tax treatment of legacy fields.  -dh), but the exact amount is uncertain at this time.   “Our area has historically been in the vicinity of 7.5 percent of the value of the pipeline,” borough assessor Patrick Carlson said.  Carlson estimated the valuation should increase the value of the total taxable revenue in the borough by $55 million, based on the portion of the pipeline that passes through the borough.