Petroleum News by Gary Park. Canada has two icebreakers in the High Arctic collecting scientific data that is designed to bolster its case for control of the seafloor on the Continental Shelf, including the North Pole.
The Coast Guard vessels, Terry Fox and Louis S. St-Laurent, will spend six weeks on the mission “to ensure that Canada secures international recognition of the full extent” of the region, said Foreign Affairs Minister John Baird.
Petroleum News by Alan Bailey. In an Aug. 6 filing Chugach Electric Association has requested Regulatory Commission of Alaska approval of a revised tariff that extends the electric utility’s gas supply agreement with Hilcorp Alaska LLC for a year, from April 1, 2018, to March 31, 2019. The current supply agreement terminates on March 31, 2018.
Fuel Fix by Colin Eaton.
By a slim margin, Alaska’s new business-friendly oil tax regime has survived an effort to overturn it and revert to a previous tax structure that cost companies more.
A measure on the state’s primary ballot Tuesday would have reinstated Alaska’s progressive oil taxes, originally installed in 2007 under former Gov. Sarah Palin and dismantled last year in an effort to lure oil companies to the state. The old taxes were tied to crude prices, and oil companies say they would have hampered the industry’s new plans for investments in the state’s lagging oil production.
ADN Op-Ed by Nils Andeassen. America’s increasing attention on the Arctic is timely and well-deserved but it’s important to recognize that there have been many individuals and organizations whose focus on the Arctic over the years we are now building on.
Office of the Alaska Gas Pipeline Federal Coordinator, by Bill White.
CBC by Sophia Harris. America and Canada are friends. That’s the main message Americans got from phase one of the federal government's multimillion-dollar advertising campaign to promote Canadian oil in Washington and drum up support for the Keystone XL pipeline.
That’s no surprise to some Washington-based Canada-U.S. relations experts who say the first leg of the campaign was too polite and, (more....)
Construction of the multibillion-dollar Alaska LNG project would tap a bounty of public resources – crossing rivers, disturbing soils and vegetation at least temporarily, creating emissions that would alter air quality, encountering threatened and endangered species.
The project’s sponsors cannot use the public’s water, land and other resources without permission, and a public process finding that such uses would be acceptable, findings that likely would come with strings attached.
The sponsors know the task ahead and have been gathering the environmental data regulators would want to see. We provide a brief guide to the federal agencies handling the major authorizations Alaska LNG would need.
Commentary on, "A Brave New World of LNG Export Competition", by Dave Harbour
Our friend, James Halloran (below, right) advises his newsletter recipients this morning that LNG Project competition is intense. This is why Alaska cannot take its resources for granted--cannot just assume that they will be both marketable and marketed. And, we can help! In a Brave New World of LNG export competition, Alaska's government and people need to work with and support reasonable natural resource development in the State. Alaska's Constitution (Para. 2) demands it. The Alaska Statehood Act depended upon it. And, the future of Alaska and her coming generations absolutely require an economy sustained by reasonable resource development. We don't know if the Alaska LNG Project will ultimately be both marketable and marketed. We do know that its sponsors will need exceptional support of Alaska's citizens to overcome the awesome forces of competition, augmented by Alaska North Slope Gas natural marketing obstacles: remoteness, climate expenses, labor expenses and logistics expenses. We also conclude that our Canadian friends face some of the same, man-made competitive obstacles and natural resource advantages.
Commentary by Energy Consultant, James Halloran.
There are over two dozen proposed LNG export projects in the US that, if all enacted, would involve shipping 38 Bcf of gas per day (over 50% of current domestic production).
Obviously, the actual number will be much smaller than that. The best guess (and it is no more than that) is that US LNG export capacity may reach about 8-10 Bcf/day.
About 2-4 Bcf will represent “swing capacity” for such majors as Exxon, arbitraging between the Atlantic and Pacific basins (and not operating full-time).
The total capacity ultimately built may actually go higher, but at that point some of it will be excess supply.
But the US situation can hardly be looked at in a vacuum. There are a number of major inputs to the LNG supply/demand equation. One of the biggest involves efforts by British Columbia to develop a number of LNG export terminals. The note below describes the critical issues that are headwinds to that effort. We will not repeat what is accented below. But the bottom line is that, while Canada’s only real advantage over the US at this point is closer proximity to the Asian market, with several disadvantages, this does not mean that Canada will cede the market to the US. The BC projects are highly likely to lead to overbuilding in the North American LNG export business.
This is especially likely, given BC’s dream of tax revenue riches from these projects. Rational behavior rarely accompanies government greed. The Canadian natural gas that will supply the BC projects will not come from fields that would go anywhere else, but this only accents the likelihood of competition for the Asian markets that will hold LNG prices down.
(Note: Should Halloran later add into this mix the prospect of an Alaska LNG project, competition becomes even more intense.
Tax greedy Provinces like British Columbia and States like Alaska will have to restrain the temptation to tax their golden eggs out of existence; if not, less greedy, more reasonable, producing area governments will create new nests of golden eggs at the expense of Canada and Alaska. -dh)
On his Face Book Page, Governor Sean Parnell (NGP Photo) writes: Progress on the natural gas pipeline for Alaskans: #Alaska’s LNG Project secured more than 120 acres of land near Nikiski and has nearly 100 more acres under contract. This bodes well for a liquefied natural gas plant, which would be the largest integrated LNG project ever constructed . Some good reporting here: http://goo.gl/KOIU5J
Bloomberg News by Rebecca Penty and Divya Balji. The race to build natural gas export terminals on Canada’s Pacific Coast is inspiring another competition as producers including Painted Pony Petroleum Ltd. (PPY) position themselves as potential takeover targets.
Developers of the gas-rich Montney shale that straddles Alberta and British Columbia are among the best-performing Canadian energy stocks this year, including Painted Pony, Crew Energy Inc. (CR) and Birchcliff Energy Ltd. (BIR) Regulators estimate the Montney, the supply source closest to the sites of proposed LNG terminals, contains 145 years worth of Canadian gas consumption.
As oil majors from BG Group Plc to Royal Dutch Shell (More here....)
TODAY'S ENERGY IN DEPTH ENERGY LINKS BELOW:
As oil boom continues, there's no end in sight for job growth. Dallas Morning News. “We have a lot of production increasing in the shale areas of Texas and North Dakota. And we’re seeing an upswing in the number of rigs in the gulf,” said Paul Caplan, president of Rigzone, which runs an online job board for the industry. “The competition for people is getting tough.”
Bottleneck keeps Permian oil price far below benchmark. Houston Chronicle. Five years into an oil production revival in the Permian Basin, producers tapping the West Texas formation are selling their oil for $21 below the benchmark U.S. price because it's difficult to get thecrude to market. NOTE: Bloomberg also reports.
New Book Documents Hydraulic Fracturing's Promise for America. Heartland Institute (Blog). The new book Groundswell is a highly recommended read. It is more an economics and politics book than a science treatise, and there are plenty of issues in fracking economics and politics to discuss. In an easy conversational writing style, Ezra Levant powerfully debunks a litany of myths regularly asserted by anti-fracking activists.
BP Hires Chief to Run its U.S. 'Lower 48' Onshore Business. Wall Street Journal. Mr. Lawler, most recently an executive vice president and chief operating officer of Sandridge, will take over a new business with "separate governance, processes and systems" from the rest of BP, the company said in a statement. He will report to BP's exploration-and-production chief, Lamar McKay. BP said in March that it would put its lower-48 onshore assets into a new business in an effort to become nimbler and "compete more effectively with the independents," BP CEO Bob Dudley told an investor meeting at the time.
Energy fight advances in North Carolina. Washington Post. North Carolina is down to the final weeks of a hydraulic fracturing battle that has consumed the state government for nearly two years. The state’s Mining and Energy Commission will kick off public hearings this week on the controversial drilling practice, which Gov. Pat McCrory (R) legalized in June. (Click Below For More International and Stateside News....)
Yesterday's Election Results: Scroll down for yesterday's analysis.
KTUU. The outcome of Ballot Measure 1 decided whether Alaska should keep changes the Legislature made earlier this year to the state's oil tax structure. Controversy surrounded the divisive issue from the time legislation was proposed through the days leading to the election.