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Northern Gas Pipelines is your public service 1-stop-shop for Alaska and Canadian Arctic energy commentary, news, history, projects and people. It is informal and rich with new information, updated daily. Here is the most timely and complete Arctic gas pipeline and northern energy archive available anywhere—used by media, academia, government and industry officials throughout the world. Northern Gas Pipelines may be the oldest Alaska blog; we invite readers to suggest others existing before 2001.

 

6-26-14 Senator Murkowski Fights Oil Export Ban - Premier Mcleod Fights For Northern Gateway

26 June 2014 4:23am

Bloomberg.  Michael Whatley (NGP Photo) called the Keystone XL pipeline a "vitally important" project that could bring discounted oil to U.S. refineries. ... Mark Rodriguez, president of the U.S. Hispanic Chamber of Commerce, also endorsed the project....

This morning, Chester Carson of Senator Lisa Murkowski's staff announced her release of this report that finds that the United States is the only advanced nation in the world with a ban on oil exports. The report – A Ban for One: The Outdated Prohibition on U.S. Oil Exports in Global Context – shows that of the 34 member countries in the Organization for Economic Cooperation and Development (OECD), the United States is the only member to prohibit oil exports.


 Sen. Murkowski urges White House to fully end crude exports ban ... 

Lisa Murkowski, Crude Oil Exports, Photo by Dave HarbourSenate Energy and Natural Resources Committee ranking member Lisa Murkowski, (NGP Photo), called on the Obama administration on Tuesday to completely end restrictions on crude oil exports. "The rules remain outdated, nonetheless, and should be modernized," she said. Murkowski still lauded the Commerce Department's ruling to authorize condensate exports as a positive move to adapt policies to the current U.S. energy landscape. United Press International.


Doc Hastings, HR 4899, lower gasoline prices, Photo by Dave HarbourFrom this morning's floor speech by Congressman Doc Hastings (NGP Photo), supporting H.R. 4899, designed to lower gasoline prices.  (Today, the House Approved the Bill.  -dh)

The Obama Administration has spent the last five and a half years placing our energy resources on federal lands and waters under tight lock-and-key.

Offshore areas have been placed off-limits, scheduled exploration off Virginia was canceled, and over half of the National Petroleum Reserve-Alaska (NPR-A) has been closed to energy production.

That’s why it’s no surprise that since President Obama took office, total federal oil production has dropped six percent and total natural gas production has dropped 28 percent. Meanwhile, gasoline prices have doubled during Obama’s presidency. 

H.R. 4899 would reverse this trend and unlock our American energy.

The bill would implement a drill-smart plan that would expand offshore energy production and safely open new areas that contain the most oil and natural gas resources – such as the Mid-Atlantic, Southern Pacific, and Arctic. It would require the Secretary to conduct specific oil and natural gas lease sales, including offshore Virginia that was delayed and then canceled by the Obama Administration.

The bill would also establish fair and equitable revenue sharing for all coastal states and improve safety by reorganizing the Interior Department’s offshore energy agencies. 

More here....

Bob McLeod, NWT, Gas Pipeline, Northern Gateway, Inuvik, Petroleum Office, Photo by Dave Harbour

CBC News.  Northwest Territories Premier Bob Mcleod (NGP Photo) says the approval of the Northern Gateway Pipeline is good news for the North.

He says that pipeline won’t just open up new markets for Alberta crude — it will also benefit markets for new oil discoveries that might be tapped in NWT.

“We need to find markets for our oil and gas potential. The United States they have significant amounts of shale gas. Obviously we have to look at other markets. One of the ways is to look at Asia, China and those places.”

But Mcleod is cautious about the project, pointing out that the Mackenzie Valley gas pipeline was approved in 2011, but never built.

New petroleum office in Inuvik

McLeod made the comments during the opening of a new Petroleum Resources Division office in Inuvik, N.W.T. (Read More Here)


TODAY'S Consumer Energy Alliance energy links: 

BuildKXLNow.org: Rural Texas Counties See Boost from Gulf Coast Pipeline construction
Construction from the Gulf Coast Pipeline brought $3.6 billion in new economic activity and $1.7 billion in wages for area workers, a new report prepared for Consumer Energy Alliance by the Maguire Energy Institute at Southern Methodist University finds.
 
BuildKXLNow.org: Oklahoma Economy Finds a Boost from Pipeline Construction
Oklahoma benefited from $2.1 billion in new economic activity and $72 million in local tax revenue from the 17 months of construction for the Gulf Coast Pipeline project, a new report released today from Consumer Energy Alliance.
 
Bloomberg: Incentives for Carbon to Help Keystone Bid, Canada's Liberal Party Leader Says
Justin Trudeau says he would bolster Canada’s case for approval of the Keystone XL pipeline by introducing financial incentives to curb greenhouse-gas emissions in the oil and gas industry.
 
The Hill: Landrieu to talk Keystone in White House meeting
Sen. Mary Landrieu (D-La.) said Wednesday that she plans to bring up the Keystone XL pipeline during a meeting with President Obama Wednesday evening.Obama will host the Senate Democrats for the meeting, which is expected to last for roughly an hour.

The Hill: McConnell pins blame on moderate Dems for no Keystone vote
Senate Minority Leader Mitch McConnell (R-Ky.) blamed moderate Democrats for the lack of a vote on building the Keystone XL pipeline. Earlier this year, Senate Majority Leader Harry Reid (D-Nev.) offered to hold a vote on Keystone in exchange for passage of an energy efficiency bill. Vulnerable senators up for reelection this year, such as Sen. Mary Landrieu (D-La.) pushed for the vote. But it ultimately never happened because of the larger disagreement over amendments.
 
E&E Publishing: Record-low number of Dems join GOP on pro-pipelines bill as 'energy week' continues
Seventeen House Democrats yesterday joined all but one Republican in voting to replace the presidential permitting process that Keystone XL has been mired in for years with a faster path to approval of energy infrastructure.
 
Williston HeraldPublic Service Commission approves pipeline
The North Dakota Public Service Commission on Wednesday approved a permit for a new crude pipeline that will carry two times more oil than the proposed Keystone XL pipeline between Tioga and Grand Forks.

6-25-14 "This is Alaska's time -- and it feels like we're back in the game" - ConocoPhillips Alaska President Trond-Erik Johansen

25 June 2014 7:40am

Resource Development Council for Alaska Report Below


Publisher's Note:

Our friend, Alaska Salmon Alliance Executive Director Arni Thomson (NGP Photo) provides us with this Arni Thompson, commercial fishing, alaska, oil tax reform, Photo by Dave Harbourlink to the Seattle Times: "North Dakota is booming, and its largest city has reinvented itself, attracting creative types and energetic entrepreneurs."  

Recently, we pointed out that Alaska had the lowest domestic product gain of any state, during 2013...in sharp contrast to other oil producing states that are moving ahead of Alaska, including North Dakota, Texas and even California.

Our friend from Senator Lisa Murkowski's Energy Committee Staff, Robert Dillon (NGP Photo), today gave us perspective on this week's federal approval to export lightly refined product.

Dillon wrote,​ "over at the Houston Chronicle's Fuel Fix blog:  Robert Dillon, Senate Energy Committee, Murkowski, Alaska, crude oil exports, pioneer, Photo by Dave HarbourJennifer Dlouhy has a nice summary of the Commerce Department’s decision yesterday to allow Pioneer and Enterprise to export condensates that have been lightly processed or 'stabilized' in a distillation tower, thereby turning them into 'refined products.'

"While the decision does not end the outdated policy that bans most crude oil exports," Dillon said,"it is a step in the right direction. Sen. Lisa Murkowski, the ranking Republican on the Senate Energy and Natural Resources Committee, has been pressing the Obama administration to lift the 1970s-era export ban since January. She has suggested a three-step road map to ending the ban, including allowing the export of condensates and a presidential finding that modernization of our export policy is in the national interest."  

The oil export ban issue is important to Alaskans since the ability to export crude oil broadens the market for and improves the price of Alaska oil.  

It is important to all Americans, since the ability to export improves US balance of payments, can assist our allies in becoming less dependent on unfriendly sources and enhances job creation.

It is important to Canada since a lifting of the US oil export ban could expand displacement and other economic strategies for most efficiently using North American energy supplies -- including throughput of the Obama-administration-delayed Keystone XL Pipeline project. 

-dh

While we acknowledge local statistics of low unemployment in Alaska, we also know that can be a temporary condition unless Alaska's investment climate continues a one-year improvement trend since passage in 2013 of SB 21, the oil production tax reform bill.  

If that job creating trend is killed by an ill-informed voter repeal of SB 21, Alaska will resume its slide past investment climate mediocrity toward insolvency.  This is because Alaska is so dependent on oil production and sustainable oil production requires sustainable tax and regulatory treatment--among other things.

We would draw reader attention to the Resource Development Council for Alaska (RDC) story below.

Ralph Samuels, RDC, ACES, Oil Taxes, No On One, Proposition One, Photo by Dave HarbourYesterday, speakers were confident in the economic future of the State, if...

...if, Alaska can become a more stable investment climate.  It can do this by 1) soundly rejecting (i.e voting 'no' on) the August primary election proposition to repeal the state's improved, reformed production tax law that is already creating more investments ... and, 2) by giving investors confidence in the durability of fiscal certainty that could lead to a $40 - $60 billion LNG Export project.  "It is up to us," as former legislator and incoming RDC president, Ralph Samuels (NGP Photo) said.  -dh

 

(Find Ralph Samuels' complete presentation here.)


 

 

"...we're back in the game!"

Commentary by

Dave Harbour

ConocoPhillips Alaska President Trond-Erik Johansen (NGP Trond-Erik Johansen, ConocoPhillips, Alaska, SB 21, RDC, ACES, Photo by Dave HarbourPhoto-L) pretty well summarized the theme of yesterday's Resource Development Council for Alaska Annual meeting. 

In his introduction of company Chairman and CEO, Ryan Lance (NGP Photo), Johansen said, “I’m sure many of you are aware that since oil tax reform legislation was signed into law a year ago, ConocoPhillips has announced new projects and increased investment in Alaska.

Ryan Lance, ConocoPhillips, Alaska, ACES, production taxes, alaska gas pipeline, lng, RDC, Photo by Dave Harbour“We are hopeful”, he said, that “SB21 will stay in place so we can continue to build on the momentum that is here now.  This is Alaska’s time – and it feels like we’re back in the game.” 

In today’s Alaska, the two big political issues du jour both concern “Investment Climate”. 

Calling on a background as former government relations director for ARCO years ago, I continue to think that a “good investment climate” exists when the tax and regulatory rules are competitive with other areas, and when those “rules of the game” are stable, predictable, and durable.  

In short, after you invest your money in good faith, you are harmed and deterred from future investment when government authorities change the rules of the game –- to take more of the money you make, or to make it harder for you to get a return on your investment -- after the investment is in place.

Over a decade ago, the governor and legislature raised the production tax IN EXCHANGE FOR assurances of investment climate certainty that would permit large gas pipeline investments. 

The severance…or, production tax was raised, sure enough, but the oil company investors were then "rope-a-doped" -- denied investment climate certainty.  It was becoming crystal clear that, after several decades of relative investment climate stability (i.e. since 1981), in Alaska “A deal was no longer a deal”.

So, the first issue du jour dealing with a “good investment climate”, is the upcoming effort by some citizens to trade away long-term stability – by repealing the recently passed tax reform bill, SB 21 – for higher taxes in the short term.  The second issue is whether investors have sufficient faith in the durability and reliability of Alaska’s fiscal policies, to plunk down $40- $60 billion on a gas pipeline and LNG export project.

*     *     *

Phil Cochraine, RDC, BP, ACES, Alaska oil and gas tax, Photo by Dave HarbourThe 2013-14 RDC president, Phil Cochraine (NGP Photo-L), opened RDC’s 39th Annual Meeting at the Dena’ina Convention Center in Anchorage by introducing Anchorage's host mayor, Dan Sullivan​, who with his Energy Advisory Counsel over the years, detected the need and successfully lobbied for improved oil industry investments in the Cook Inlet area of the state.  

Paula Easley, RDC, Resource Development Council for Alaska, Photo by Dave HarbourHe went on to recognize board members, veterans, staff and Paula Easley (NGP Photo), long-time executive director and then board member—who received a standing ovation. 

He recognized elected officials in the room, including Lieutenant Governor Mead Treadwell, Senators Anna Fairclough, Cathy Giessel, Charlie Huggins, Kevin Meyer and several State Representatives including Mia Costello, Shelly Hughes, Craig Johnson, Bob Lynn, Lora Reinbold, Dan Saddler, Bill Stoltze and Geran Tarr and  (Please let us know of others so the archives may be accurately revised.)

KARA MORIARITY, AOGA, KIDS, RDC, SB 21, NO ON ONE, PHOTO BY DAVE HARBOURAlaska Oil & Gas Executive Director Kara Moriarty then addressed the large crowd of some 1,200.  “Alaska runs on oil,” she said.  Moriarty emphasized the importance an improved investment climate leading to improved production upon which jobs, the state budget and the future of Alaska’s children depends (NGP Photo).  Pointing to the assembled children, she said, “These kids are our future ... future miners, future commercial fishermen….  It’s all about jobs.”

Moriarty warned that in the weeks leading up to the August primary election, “…you will hear about the SB 21 $2 billion give-away…that DOESN’T EXIST.”  She also cited a recently completed McDowell Group study emphasizing the impact of oil industry investment on jobs.  (View Moriarty's slide pack.  Note that the actual presentation may have deviated somewhat from prepared remarks.)

Following the introduction by Johansen, Lance (NGP Photo) addressed, “The U.S. Oil & Gas Renaissance – Alaska’s Role” (We provide his slide pack here).

He said the U.S. oil and gas renaissance is growing because of a shale revolution and affirmed that the phenomenon has “staying power”.  Canada is experiencing similar production increases which, together, make possible the increased export of natural gas by 2016. 

At the same time, he said, Asian consumer demand for gas is providing a market for the increased gas supply.  While several dozen LNG export terminals have been proposed in the U.S. and Canada, not all can be expected to be built, he said. 

Alaska has fiscal challenges and Lance noted that Canada has certain ‘infrastructure challenges’, as we have discussed in these pages. The surviving LNG projects, he suggested, will likely come from areas encompassing competitive advantages, including “reasonable fiscal terms”.  Lance emphasized that Alaska had advantages in the growing LNG marketplace, including its 40-year history of exporting LNG to Japan from its Cook Inlet plant at Nikiski and Alaska’s relatively close proximity to Asian markets.

He also said that Alaska’s role in producing more crude oil could be enhanced by reasonable policies.  “ConocoPhillips has a 50-year history in Alaska and remains committed to the state,” he said.  He said he sensed the excitement in the economy and emphasized that maintaining the tax reforms of SB 21would be, “…good for the state, good for jobs and good for industry.”

In an interview following the meeting, we discussed the nature of fiscal certainty with Lance.  We asked about the importance of reliability to a gas pipeline decision.  He said, “stability and certainty are pretty important when making investments over 40-50 years. “

He added that, “We just want an understanding that we can ... say this is the kind of returns we expect out of these projects and that does require some sense of fiscal certainty and stability. 

“But I tell people”, he went on, “we handle this around the world everywhere.  We have fiscal stabilization clauses in our contracts … with most governments and we make big investments all around the world.  So this isn’t new ground we’ve had to tread....  ...we’ve done this globally, we know what it means, what we are just asking is … when we are in these big long projects that you keep us stable through the course of that period. “

We think no reasonable person would think Lance’s request to be unreasonable.  Even Russians and Chinese don’t apparently think the request for fiscal certainty to be unreasonable.

As we probed the subject further, he said, “…people ask me about Russia, China, and where we’ve been for over 20 -30 years … we haven’t changed the contract most places.” 

He added that in Alaska, the fiscal terms have changed, “numerous times”.  He concluded, “…that’s why the companies are talking about this issue; talking about why we need to have some sense of stability and certainty as we go forward with these investments.”

If any elected official were to ask us, “how do we make the investment climate attractive to a gas pipeline investment,” we would say, “Dear Alaskan colleagues, you have a problem.”

We would explain that Alaska has to overcome the greed mentality behind statements like, “It’s our oil”, and “They represent their shareholders and we represent ours”.

Both of those statements are employed as excuses to rob investors of money after they have made investment decisions.  Oil company shareholders and boards would never condone actions by their company to represent them by violating lease terms or breaking tax laws or vilifying public officials.

Yet Alaska over the last decade has taken billions more from oil companies after investments have been made and risks undertaken in good faith; passed tax legislation demanding retroactive payment; and, vilified Alaska’s most capable investors for no defensible reason. 

Alaska's elected officials have given tax breaks to film producers and small oil companies that produced few jobs and little tax revenue while unfairly taxing large petroleum investors who employ many and pay much.

If Alaska wants to attract more investment leading to more oil production and a gas pipeline it had better start doing an attitude check.  Like North Dakota and Texas and Oklahoma, Alaska just might be better served by admitting it is an oil state, appreciating that blessing and becoming proud of its standing as a big “oil patch state”.

Being friendly to investors does not mean giving away the store.  It does mean becoming a place where, after an investment is made, the investor does not lose sleep wondering if the state’s leaders in the morning will decide they want to take more money and saddle the investor with new tax and regulatory burdens.

Like RDC President Ralph Samuels said, “It’s up to us”.

If our decision is to become a responsible investment Alex DeMarban, ADN, Anchorage Daily News, Ryan Lance, Alaska Dispatch, ConocoPhillips, ACES, Photo by Dave Harbourclimate, perhaps we can certify Trond-Erik Johansen’s hope that we are, truly, “back in the game”.

* See ADN story by Alex DeMarban (NGP Photo: DeMarban at press conference following luncheon speech.)

* See RDC's video of Lance's presentation.


Luncheon Remarks

For Ralph Samuels

RDC’s 39th Annual Meeting Luncheon

Dena’ina Convention Center

June 24, 2014

            Thank you, Phil.  It is my honor to serve as President of the Resource Development Council. Alaska faces many challenges, but there are also great opportunities on Alaska’s horizon. 

GOLDPAN PRESENTATION TO PHIL COCHRANE

          RDC has been fortunate to have both a strong board of directors and staff over the course of its nearly 40 years of existence.  Our leadership team has been second to none and Phil Cochrane is no exception.  Phil has served as RDC’s president for two consecutive years and helped guide our team as Senior Vice President for the two years prior.

At this time I would like to present Phil with our traditional President’s Gold Pan in appreciation for his service to RDC.  Thank you Phil for your leadership, hard work, and unending commitment to the mission of RDC – growing Alaska’s economy through responsible resource development. (Applause)

LEGISLATURE AND OIL PRODUCTION TAXES

Over the past year, the 28th Alaska legislature and Governor Parnell’s administration made significant progress in affecting positive change for Alaska’s natural resource dependent economy.  RDC members engaged in a proactive way by testifying, writing, calling and visiting their elected leaders on important issues.  To all of you who responded to our repeated action alerts, thank you! If you didn’t step up, there is more work to do and there will be many opportunities to make your voice heard.

The legislature and administration made progress on advancing a large-diameter Alaska gas pipeline project by passing enabling legislation that empowers the state to become an owner in the Alaska LNG project.  The legislature also passed injunctive security legislation relating to industrial operations in our state – an issue RDC has been working on for several years to bring more fairness and reason into the litigation process. RDC was at the forefront of these and many other issues.

For years RDC has been advocating for the reform of ACES, the oil and gas production tax put in place in 2007 that has been hugely responsible for an accelerated North Slope production decline. As you all know, oil production tax reform finally passed the legislature last year and RDC’s top priority this year is to defeat Ballot Measure 1, which would repeal the new tax structure that took effect January 1st and bring back the old failed ACES tax regime.

The new tax policy is a significant improvement and the industry’s response is encouraging. There is good reason to be optimistic that Alaska is back in the game and that the stage is now set for a future of growth and opportunity. At this time I would like to call on RDC Executive Committee member Kara Moriarty to further address this critical issue.

INTRODUCTION OF TROND-ERIK JOHANSEN

Thank you Kara. Turning to our program, RDC is pleased to welcome both Trond-Erik Johansen and Ryan Lance to our program. Mr. Johansen will be first out of the gate, followed by our keynote speaker. Mr. Johansen is president of ConocoPhillips Alaska, a position he assumed in April 2010.  He joined ConocoPhillips in 1986 and has held a variety of petroleum engineering, well engineering and leadership positions in numerous locations in the U.S. and abroad. Please welcome Trond-Erik Johansen.

(Note for Ralph: Trond-Erik will introduce Ryan Lance)

FOLLOW-UP REMARKS

           (Any personal comments and reflections on the presentation. Present to Ryan as a token of our appreciation, Judy Patrick’s new book, “Photographs of Alaska’s North Slope: Arctic Oil.”)

FINAL COMMENT

A big thank you once again to all of our sponsors for their generosity, and each and everyone one of you for your ongoing support of RDC.  With all of us working together, we can build a prosperous economy and overcome the challenges before us.

I would like to remind everyone to visit the RDC website at akrdc.org on a regular basis for the latest industry and issue updates. Today’s presentation, as well as all other RDC events and breakfast meetings, are available online.

Please mark your calendars for RDC’s annual conference this fall, which will be held on November 19-20th here at the Dena’ina. Our breakfast forums will resume in September.  

One final note, in the next decade alone, Alaska will need to fill 7,500 oil and gas jobs.  And with the potential Alaska LNG project and other oil and gas projects, there will be even more jobs available for Alaskans.  The Alaska Department of Labor and Workforce Development – in partnership with industry and other stakeholders – unveiled a comprehensive workforce plan to prepare for oil and gas jobs now and in the future.  There are cards on the tables at the back with more information. You can also go to the department’s website at Labor DOT Alaska DOT GOV.

In addition, as you leave today, please take with you a copy of our 2014 Annual Report, which is available on the tables and at the exits.

Finally, remember to VOTE NO ON 1 come Tuesday, August 19th!

This concludes the 39th Annual Meeting of the Resource Development Council. Thank you all! 

Categories:

6-24-14 Hear ConocoPhillips Chairman & CEO Ryan Lance: TODAY's Resource Development Council for Alaska Annual Meeting Speaker

24 June 2014 8:48am

Russia, China, Canada, energy, arctic, LNG, pipelines, Northern Gas PipelinesCalgary Herald: A Chinese firm is behind a new Alberta joint-venture company that wants to build a liquefied natural gas plant in the province.  (See our 5-27-14 editorial re: Russian & Chinese energy initiatives.  -dh)


RDC's 39th Annual Meeting Luncheon

(For readers who can't attend, here is the live streaming link generously provided by GCI Communications and the Resource Development Council for Alaska.  -dh)

TODAY, June 24, 2014
Dena'ina Civic & Convention Center • Anchorage, Alaska
Doors open at 11:15 a.m., program begins at noon

Investing Now For The Future:

The Proud Partnership Between Industry and Alaska

"The U.S. Oil and Gas Renaissance and Alaska’s Role"

Ryan Lance
Chairman and Chief Executive Officer
ConocoPhillips
Biography (pdf)

Ryan Lance, Alaska, ConocoPhillips, ARCO, Resource Development Council for Alaska, Northern Gas Pipelines

This lunch is sold out.
Walk-ins will be admitted on a space available
basis immediately prior to the luncheon.

6-23-14

23 June 2014 9:01am

The Alaska Department of Natural Resources, Division of Oil and Gas is hosting an open house style public scoping meeting to solicit public input on DNR's oil and gas leasing regulations in 11 AAC 83 TODAY, June 23, 2014, 3 p.m. - 6 p.m. in the Kahtnu Room, 2nd floor of the Dena'ina Civic and Convention Center in Anchorage: http://dog.dnr.alaska.gov/Notices/Regulations.htm.  Call 907-269-8800 to register.


Matthew Cronin, National Security, University of Alaska, Biologist, Polar Bear, Photo by Dave Harbour, ArcticA Proposal To Enhance National Security
Guest Editorial
 
By 
 
Matthew A. Cronin
 
In Congressional hearings top military leaders have issued serious warnings about the impact of budget cuts and sequestration on the U.S. military that threaten readiness, training, equipment
maintenance, and most importantly the morale of our military personnel.
 
This is a serious threat to our national security.
 
At the same time, the federal government is using wildlife and environmental regulations to deny Americans access to vast natural resources on federal land including oil, gas, timber, rangelands, and minerals.
 
As a scientist at a Land Grant University with experience in these issues, it is apparent to me that natural resources can be developed with limited environmental impacts, but
that regulators, scientists, and environmental groups stop development by predicting negative impacts on fish and wildlife with the selective use of science.
 
These two issues may seem unrelated, but I have developed a proposal for immediate Congressional action to alleviate the threat to national security caused by budget reductions to the military and restore sound natural resource management on federal lands.  
 
This proposal seeks to:
 
1) Provide immediate funding for the U.S. military for fuel and personnel costs;
 
2) Immediately develop oil resources on federal lands with the revenue from the sale of oil going directly and exclusively to the Department of Defense (DOD) U.S. Army, U.S. Air Force, U.S. Navy, U.S. Marine Corps, and the Department of Homeland Security (DHS) U.S. Coast
Guard (USCG) for two purposes: fuel costs and a 10 percent across the board pay raise for all military personnel.
 
How would this work?
 
Alaska’s North Slope oil is the first operation, as it can provide 11 billion barrels of oil from recoverable federal reserves. Other states and other resources (e.g., natural gas, minerals, livestock grazing, and timber) can be added to the program in the future.
 
There are extensive onshore oil and gas prospects in Northern Alaska under federal government control including the Arctic National Wildlife Refuge (ANWR, 10.36 billion barrels) and the National Petroleum Reserve Alaska (NPRA, 0.9 billion barrels).
 
Congress should pass a law, with the approval of the
State of Alaska legislative and executive branches, to do eight key things:
 
1. Begin immediate and extensive exploration for oil in ANWR and NPRA in 2014.
 
2. As this action is for national security, it will use existing environmental assessments and impact statements and as such will not require additional research, permits, or
regulation, and will not allow lawsuits to prevent exploration and development. The activity will be exempted from all regulatory permits, and will comply with standard safety and environmental management practices currently in use.
 
3. An exploration plan will be developed by the State of Alaska, in partnership with the energy industry and the U.S. Geological Survey (USGS) Energy Resources Program. Private sector oil industry experts will design development operations to maximize oil production and minimize environmental impacts. North Slope residents and experienced oilfield personnel will advise with local knowledge.
 
4. Upon the discovery and delineation of oil reserves, immediate leasing and rapid production will commence, with oil being transported to the Trans-Alaska Pipeline System (TAPS) for delivery to the Valdez oil terminal.
 
5. The above actions will occur under accelerated leasing to the private-sector oil industry.
 
6. Oil lease receipts and a per-barrel royalty will be allocated to the military (DOD and USCG) to be used for fuel and pay raises for all military personnel. Current DOD and USCG funding will not be reduced as a consequence of this oil revenue.
 
7. No federal government agency actions will be taken, or costs incurred, other than DOD, USCG, and State of Alaska direct costs to administer the project.
 
8. The goal is to have exploration completed no later than the spring of 2015, with production and first oil as soon as possible in 2015-2016.
 
Such a specific plan would do several positive things:
 
  • It would enhance national security by enabling the military to train and conduct operations.
  • It would improve military personnel morale, and
  • it would demonstrate that the American people appreciate their service.
  • It would demonstrate that our country has the resolve to maintain its military capability and develop our natural resources for our own use.
  • It would accelerate our energy independence, help our trade imbalance, strengthen the dollar and reduce our financial investment in hostile regimes around the world.
  • It would establish, in a new way that could serve as a model, the federal government as a participant with, rather than hindrance to, the States and the private sector in resource development.
  • Finally, it would provide economic growth for the country and good private sector jobs for young Americans.
If the timeline of development seems ambitious, it is. But national security and the well-being of our military personnel warrant ambitious and aggressive action.
 
Consider that the Alaska Highway was built in 7 months (April-October 1942), and World War II was won in three years and eight months (7 December 1941-14 August 1945).
 
Although the President and Congress have been unable or unwilling to deal with these issues, we can do this. We can develop energy resources, through a national security framework, quickly and safely, and use the revenues to strengthen our military.
 
When considering my plan, think of our troops and veterans who have been deployed, are deployed, or are preparing to deploy to war.
 
Ask them if it’s time we stop talking and take action to adequately fund our military and create private-sector jobs in America.
____________
 

6-22-14 ...A Special Note To Friends Of Dr. Milton Byrd

22 June 2014 7:19am

Milton Byrd, Alaska Support Industry Alliance, Charter College, Celebration of Life, Photo by Dave Harbour

 

To mutual friends of the late Dr. Milton Byrd; we invite you to join us in celebrating this great man's life next Sunday:

 

 


The Family of Milton Byrd

Cordially Invites You

To

A Celebration of Milt's life

June 29, 2014

The Petroleum Club of Anchorage

Two o’clock In The Afternoon

Please RSVP to Rebecca Logan via email:

RLogan@alaskaalliance.com

 

 

6-20-14 Happy Birthday To Prudhoe Bay!

20 June 2014 5:44am

AJC by Tim Bradner: Gov. Sean Parnell terminated TransCanada AGIA pipeline contract.  (Also see our report two days ago.  -dh)

From Mail OnlineRussian agents are secretly working with environmental campaigners to halt fracking operations in the UK and the rest of Europe, the head of Nato warned yesterday.  (Do we believe this effort does not extend to Canada and the Unites States?  -dh)


Refer to the Federal Coordinator's new webpage for public information on the Alaska LNG Project.  -dh


Prudhoe Bay and TAPS: HAPPY BIRTHDAY TO YOU!

EPA WARNING!!!

Commentary by

Dave Harbour

Charisse Millett, Alaska State Representative, EPA, Clean Coal, Photo by Dave HarbourWhile on the one hand we were there at the beginning and are now delighted to celebrate the 37th birthdays of both the great Prudhoe Bay oilfield and the Trans Alaska Pipeline System (TAPS), we also keep a wary eye on the future.

After all, if we don't look out for the future of our children by carefully monitoring government policies affecting them, who will? 

The EPA's "Destroy American Jobs, Economic Prosperity and Bright Futures For Our Youth" approach to reasonable environmental regulation is heartbreaking and a direct threat to the American way of life, as we have frequently documented here.

In the letter below, Alaska State Representative Charisse Millett (NGP Photo above), exposes the damage EPA proposes doing to Alaska's people in yet another frontal attack on the 49th State's effort to survive as envisioned both by the 1959 Statehood Bill and its own constitution.

We offer our respect and appreciation to Republican Representative Millett for her initiative.

We wonder why we have not seen elected officials of the other party, serving in both Washington and Juneau, exercise more control over an agency whose policies their party leadership implements.  Or, we wonder, do all democrats support the EPA's overreaching policies in Alaska and elsewhere?

We would be delighted to print responses to EPA by all elected officials, regardless of party!

Millett writes: 

This month the Obama Administration and the Environmental Protection Agency announced a plan to
reduce carbon dioxide emissions from power plants.
 
Known as the Clean Power Plan, it threatens the
power supply in the interior section of my state unless it is amended to recognize Alaska’s unique
circumstances.
 
I would like to set aside the ongoing debate among scientists over the role carbon dioxide has in climate
change and the doomsday predictions that come with it to focus on how electric rates and electric grid
reliability will be impacted in Interior Alaska by the Clean Power Plan.
 
It calls for slashing carbon dioxide emissions from power plants by 30 percent in 16 years, a goal that can
only be reached in many states, including Alaska, by converting coal fired power plants to natural gas.
 
Interior Alaska uses coal fired power plants because it is the only available energy source capable
generating cost effective, on demand power.
 
Massive natural gas reserves are available hundreds of
miles north at Prudhoe Bay, but until a multibillion dollar gas pipeline is built that fuel is not an option.
 
Replacing coal with alternative energy sources like wind turbines endangers electric grid reliability
because the winds do not always blow. Winter temperatures in Interior Alaska can hit 60 degrees below.... (Read more here)

  

 

 

 

 

Our friend, Dawn Patience, reminds us that TODAY Prudhoe Bay turns 37, as does the Trans Alaska Pipeline System. Dawn also sends us a story (Scroll Down) by industry historian, Frank Baker (Photo above, 6-20-77, TAPS ceremony at Prudhoe Bay).

Confirmation well

The field startup was June 20, 1977, Prudhoe Bay is still the largest field ever discovered in North America, 37 years later. On March 13, 1969 the Prudhoe Bay confirmation operator BP announced a major strike about seven miles from the ARCO Prudhoe Bay discovery well.

Sealift

The construction of Prudhoe Bay included a barge armada transporting the facilities to the North Slope.

Nearly all the major oil field equipment were constructed as huge modules (as large as 2,6000 tons) on the coasts of California and Washington and transported to Prudhoe Bay by barge.

Freight drop flight

All materials and supplies were transported to Prudhoe Bay, more than 600 air miles north of Anchorage. The field startup was June 20, 1977, Prudhoe Bay is still the largest field ever discovered in North America, 37 years later.  

June 20 Marks Prudhoe Bay’s 37th Birthday

By Frank E. Baker
Thu, Jun 19, 2014

June 20, 1977 was a gray, overcast morning at Prudhoe Bay on Alaska’s Arctic coast as scores of reporters, dignitaries and others huddled around the pipeline at Pump Station 1, Milepost 0 of the trans-Alaska pipeline, to witness history. At 10:26 a.m., pumps were started, valves were opened and the first crude oil from North America’s largest oil field flowed into the pipeline for its 800-mile journey to Valdez, where it would be loaded aboard a tanker destined for the US West Coast.

It was an historic moment for the nation, which was heavily reliant on OPEC oil, and the State of Alaska, which was struggling to gain its economic footing as a new state. For BP and ARCO, the two operators of the giant Prudhoe Bay field, it was a long-awaited moment — the culmination of a major push into the Arctic that had begun nearly 20 years earlier when geologists first ventured north to probe this remote frontier. Their search paid off in 1968 with the discovery of Prudhoe Bay — ranked among the top 20 oil fields ever discovered worldwide and still the largest field discovered in North America. Early estimates were 9.6 billion barrels of recoverable oil, making it a field of Middle Eastern size.

Thirty-seven years later, after yielding more than 12 billion barrels of oil, the field is still producing about 260,000 barrels per day (gross) and remains a key asset in BP’s global portfolio. It has provided the State of Alaska billions of dollars in taxes and royalties, created tens of thousands of jobs and helped boost the state’s savings account — the Permanent Fund — to more than $50 billion.

Today, Alaska’s oil industry accounts for about 89 percent of the state’s revenues, with a large share coming from Prudhoe Bay. In addition to its economic benefits, Prudhoe Bay and the field developments it spawned have served as a proving ground for the advancement of oil field technology, Arctic engineering, and significantly increased knowledge of the Arctic environment.

Alyeska Pipeline Service Co., which operates the Trans-Alaska Pipeline System (TAPS) on behalf of BP and other pipeline owners, is also celebrating its 37th anniversary TODAY. Counting production from Prudhoe Bay and other North Slope oil fields, it has reliably delivered nearly 17 billion barrels to the Valdez Marine Terminal, located in Prince William Sound. A monument at the terminal bears an inscription dedicated to the tens of thousands of men and women who worked on the TAPS project from 1974-77: “They didn’t know it couldn’t be done.”

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