ADN/AP. A federal judge has ordered representatives of Greenpeace USA to stay a kilometer away from Shell Oil’s drilling vessels destined for Arctic Ocean waters off Alaska’s northern shores.
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We are approaching the end of March, the deadline by which Wall Street Journal by Tom Fowler. Exxon Mobil Corp., BP PLC, ConocoPhillips and the governor of Alaska have agreed to settle a long-running dispute on developing a key North Slope natural-gas field, clearing the way for a future gas pipeline and gas-export terminal. Governor’s Statement: March 30, 2012, Anchorage, Alaska – Governor Sean Parnell announced today that two major milestones have been met in the state’s effort to bring Alaska’s natural gas to Alaskans and markets beyond. First, the State of Alaska resolved its long-running litigation with ExxonMobil and other leaseholders regarding the Point Thomson field, which holds a quarter of the North Slope’s known natural gas. And, second, the three major producers – ExxonMobil, ConocoPhillips and BP – delivered a letter today to the governor announcing that they are now aligned with the Alaska Pipeline Project (APP) parties, and working on a gasline project focusing on bringing North Slope gas to tidewater in Alaska. Senator Lisa Murkowski’s Statement: “It’s encouraging that the major leaseholders are once again talking about a single pipeline project to commercialize Alaska’s North Slope natural gas. This is the first time in many, many years that there’s been alignment among the leaseholders, TransCanada and the state. That in itself is good news. “Japan is aggressively looking to sign a long-term supply contract for natural gas, as are other Asian markets. Alaska should seize this opportunity to get its gas to a market that is currently paying up to $16 per thousand cubic feet. It’s imperative that all of the players involved do everything possible to accelerate the decision-making process to ensure that the window of opportunity doesn’t close on us.” Senator Mark Begich’s Statement: “A Point Thomson settlement is good news. As nearly 40 years of effort has shown, all of Alaska is going to have to pull together if we are to commercialize the enormous natural gas resources of the North Slope. “Any large scale project, whether it’s an Alaska-only route with LNG export or a highway route to the Lower 48, will bring thousands of jobs and lower-cost energy to Alaskans. “I stand ready to work with the rest of the Alaska delegation to help bring Alaska’s enormous natural gas resources to market. Much of that groundwork at the federal level has already been laid for the highway route. “As the producers examine an LNG project, I’ll continue to work to smooth the path for speedy federal review that can shave time and costs such as my legislation, the Alaska Natural Gas Pipeline Improvement Act.” |
Governor Sean Parnell had hoped the three Alaska North Slope Producers would reach agreement on alignment of the various gas pipeline interests in pursuit of a single, realistic project. Today is the last business day of the month. Therefore, we will expect today to hear a major gas pipeline announcement from producers and possibly the Governor’s office. Failing that, many in Alaska, Canada and throughout the Lower 48 will be asking what the government and private decision makers plan next. Any way we slice it, this day is likely to be remembered in the archives of Northern Gas Pipelines. Keep checking below, today, for late breaking news. We had a call from a Canadian publication on this matter yesterday and for benefit of our friends everywhere please note that the very latest information is liable to occur today at noon with the presentation by the State’s Alaska Gasline Inducement Act (AGIA) manager, Kurt Gibson. ("Our Own Worst Enemies" commentary postphoned until next week)
Alaska Dispatch by Alex DeMarban. When Gov. Sean Parnell on Wednesday said the clock is ticking on the legislative session and a lot can change in 18 days, he might have been thinking of a possible huge deal in the works that could give leverage to Alaska’s oil companies seeking a massive tax break. An Associated Press story Thursday could lead one to think that the state may be on the cusp of such a deal with Exxon Mobil Corp. and other major oil companies over a massive but long-fallow gas field called Point Thomson. That’s because the Alaska Supreme Court earlier Thursday dismissed the epic lawsuit over Point Thomson at the request of the state and oil companies, according to the AP.
Juneau Empire/AP by Becky Bohrer. The Alaska Supreme Court on Thursday granted a request by the state and energy companies to drop its review of a case involving disputed leases on the Point Thomson gas fields. Fairbanks News Miner Editorial by Dermot Cole. Our legislators are considering plans to back the plan to truck natural gas to Fairbanks from the North Slope, which is the best option on the table for reducing electric rates and lowering the cost of heating. With fuel oil now priced at more than $4 a gallon, the need for more affordable energy in Interior Alaska is clear.
ADN/AP by Becky Bohrer. JUNEAU — Senate President Gary Stevens (NGP Photo) on Thursday called Gov. Sean Parnell’s plan to cut oil taxes a "historic gamble" with Alaskans’ money that would give away billions of dollars in revenue to industry on "a wing and a prayer."
office reports that the Senator yesterday invited President Barack Obama to a “milkshake” summit to discuss a new approach to opening the non-wilderness portion of the Arctic National Wildlife Refuge to responsible oil and gas development.
From Senate Energy Committee
commuinications officer, Robert Dillon (NGP Photo) comes this fascinating analysis of Obama’s Rose Garden attack on the oil industry yesterday:
Pinocchio Alert!
Drilling Down on the Dry Holes in the President’s Latest Energy Speech
President Obama spoke in the Rose Garden this morning about his desire to increase taxes on the largest American oil and gas producers. We believe there are bipartisan solutions to our nation’s energy challenges, but unfortunately his remarks were again filled with mistaken and misleading claims that will do nothing to reduce prices at the pump.
Rhetoric: “…oil companies are also getting billions a year in taxpayer subsidies – a subsidy they’ve enjoyed year after year for the last century.”
Reality: The industry subsidizes the federal government, not the other way around. In 2010, the five largest oil companies alone paid $55 billion in local, state, federal, and foreign taxes – not including rents, royalties, fees, and bonus payments. So while wrong, this statement does reveal the president’s mindset – that not taking even more of a company’s earnings is somehow a “subsidy” and the same as “handing out taxpayer dollars.” By the White House’s logic, any dollar earned, but not seized by the government is a subsidy. Remember, too, that in Treasury’s official budget explanation the administration claimed the current tax code somehow results in the “overproduction” of domestic oil, and declared that both “detrimental to long-term energy security” and “inconsistent” with its preferred cap-and-trade program.
Rhetoric: “We can’t just drill our way out of this problem. We use more than 20% of the world’s oil, but we only have 2% of the world’s known oil reserves. That means we could drill every drop of American oil tomorrow – but we’d still have to buy oil from other countries to make up that difference. We’d still have to depend on other countries to meet our energy needs.”
Reality: Yet again. The president has been awarded two Pinocchios by The Washington Post’s Fact Checker for repeatedly making this highly misleading claim. In truth, we are an oil-rich country, with more than 220 billion barrels of recoverable resources, according to the Energy Information Administration’s latest oil and gas model. To make it seem like the U.S. is both running out of oil and using it at an unsustainable rate, the president purposely excludes all lands that have not been drilled. For more on this, see either Washington Post column (here and here), or the op-ed Senator Murkowski published last year.
Rhetoric: “…one analysis shows that every time gas goes up by a penny, these companies usually pocket another $200 million in quarterly profits.”
Reality: Perhaps then, it’s time to focus on policies that would actually bring prices down. Oil prices have risen because of strengthening demand, supply disruptions in certain parts of the world, and instability in the Middle East. But prices do not always have to go up – with the right policies in place, prices would also go down, and this talking point would become a moot point. Instead the effort to increase taxes would reduce investment and, ultimately, supply. In any case, it’s better to have revenue remain in the U.S., where it can be invested in research and pay down the debt, than in the hands of OPEC.
Rhetoric: “Under my administration, we’ve opened up millions of acres of federal lands and waters to oil and gas production.”
Reality: The Obama administration is operating under a Five-Year OCS plan developed by the Bush administration, and has actually cancelled both onshore leases and offshore lease sales. As a result, less acreage is available now than when President Obama took office. He has recently touted a lease sale in the Central Gulf of Mexico that was already scheduled under the current plan. He’s also trumpeting steps that his administration is taking that may lead to a lease sale off of the East Coast after 2018, even though he cancelled the sale that was already scheduled to take place in 2011. That’s not “opening” anything.
Rhetoric: “We’ve added enough oil and gas pipeline to circle the Earth and then some.”
Reality: Most new pipelines do not require approval from the president – and only some require approval from any federal agency. That’s probably why the president said “added” instead of “approved.” Only a few pipelines have required presidential approval in recent years, most notably the Alberta Clipper and Keystone XL. Rather than remind his audience that he just rejected a pipeline that would require no subsidy, create thousands of jobs, and improve our nation’s energy security, the president has resorted to this questionable statistic to try and deflect blame.
Rhetoric: “The fact is, we’re producing more oil right now than we have in eight years, and we’re importing less of it too. For two years in a row, America has bought less oil from other countries than we produce here at home – for the first time in over a decade. Simply put, American oil is booming.”
Reality: This is happening in spite of, and not because of, President Obama’s policies. Production is up on state and private lands but fell significantly on the federal lands under the president’s control last year. Our source? The Energy Information Administration, which found that federal oil production fell 14 percent between 2010 and 2011.
Rhetoric: “Meanwhile, these companies pay a lower tax rate than most other companies on their investments – partly because we’re giving them billions in tax giveaways every year.”
Reality: We’re not sure how the president came up with this. According to the American Petroleum Institute, the effective tax rate paid by oil companies was 41.1 percent in 2010 – far higher than the average rate of 26.5 percent paid by other manufacturers. According to a study cited by the Wall Street Journal, oil development projects also face far higher tax rates than other forms of energy.
Rhetoric: “Investments in wind power and solar power and biofuels; in fuel-efficient cars and trucks and homes and buildings. That’s the future. That’s the only way we’ll break this cycle of high gas prices that happens year after year after year.”
Reality: The president should know that wind and solar power, as well as efficient homes and buildings, have nothing to do with “high gas prices.” And he should also know that a bipartisan majority in Congress supported both advanced biofuels (through the 36-billion gallon Renewable Fuel Standard) and higher vehicle efficiency (through higher CAFE standards in the 2007 energy bill). What he may not know is that GAO recently found 94 ‘green building’ programs and nearly 700 renewable energy initiatives scattered throughout the federal government. Republicans are not stridently opposed to renewable energy, but we have asked that policies be paid for and that American oil and gas production be included as part of the solution.
CWN Energy Action Coalition
Friday, March 30 from 12-1pm
ANGDA located at 411 West 4th Avenue
Commonwealth North’s Energy Action Coalition will meet this Friday, March 30 from 12-1 at ANGDA located at 411 West 4th Avenue in the Yellow Sunshine Mall on the lower level across from the Saturday Market parking lot. We will be joined by Kurt Gibson, Alaska Gas Pipeline Project Director, who will give an AGIA update specifically touching on the current status of the project and what movement the State hopes to see made this year. If you would like to participate via teleconference the call in number will be 907-276-4900. Commonwealth North has been leading an effort to study, highlight, and identify challenges and opportunities in Alaska’s energy future in order to bring informed Alaskans to the table and come to solutions that will benefit all Alaskans and ensure these complex energy issues are understood. If you are interested in the public policy issues facing Alaska you should to be a member of Commonwealth North. Membership information is available on our website at www.commonwealthnorth.org or call Joshua Wilson at 258-9522.
Today’s news and commentary in process….
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