Miss a day
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      This is your public service 1-stop-shop for Alaskan and Canadian Arctic energy commentary, news, history, projects and people. We update it daily for you. It is the most timely and complete northern energy archive 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 name others existing before 2001.  -dh



19 September 2015 8:12am

Globe and Mail, by OSAMU TSUKIMORI.  Alaska could pay $70-million (U.S.) to $100-million for TransCanada’s 25 per cent stake in the midstream and upstream sectors of the proposed Alaska liquefied natural gas (LNG) project, Governor Bill Walker said on Thursday.

Walker has recommended to legislators that the U.S. state should buy the stake, adding to a similar stake in a planned liquefaction plant and giving it a quarter share of the giant 20 million tonnes per annum export project.  More....


9-18-15 "Who's On First?"

18 September 2015 10:04am

Petroleum News.  With Premier Christy Clark at the helm, the British Columbia government entered a two-day summit on Sept. 9 with about 500 First Nations leaders hoping to bridge the chasm on future economic, social and legal relations.

Alert: Alaskans Concerned about a nearly 50% gap between state income and spending should attend Tomorrow's Forum On Alaska's Fiscal and Economic Future!  Here's the program and here's how to watch live. For additional reference, here's a Rasmuson Foundation state fiscal policy poll.

(Commentary: Alaska's elected leaders have been unwilling/unable to match limitless wants with limited cash.  

Their solution has been to avoid spending cuts and constituent rage by filling deficits with savings.  

Now the easily available savings are almost gone; the annual deficit increases along with low oil prices; oil royalties and taxes are not matching increased spending; and, an unfunded state employee pension liability exceeds the size of the state budget.

Ironically, the recent passage of oil tax reform has led to big energy investments which could assist Alaska in propping up its fiscal house, in the long term.  Reform legislation also contained tax incentives for energy that are good for the long run but jeopardize short term budget balancing. 

Accordingly, investors -- along with the three credit rating agencies -- will be assessing the state's credit worthiness and its ability to protect current and future investments from the risk of predatory taxes in absence of effective spending reforms.

Meanwhile, Alaska's governor and several legislators have further diminished Alaska's attractiveness to investors.  They have done this by continuing to raise the the possibility of creating new industry taxes.  

When less income begets higher taxes, which begets lower income, leading to higher taxes, a condition is created which economists refer to as an economic "death spiral".  

Beware, Alaska for the long-anticipated time of truth now hovers at your doorstep.     -dh)

News Miner by Jeff Richardson.  ​University of Alaska President Jim Johnsen presented an ambitious budget plan to the UA Board of Regents on Thursday, but said he’s approaching state funding with “a sense of realism” amid a tight spending environment.

Alaska Governor Bill Walker, Japanese Market, LNG, AGDC, Dan Fauske, Photo by Dave HarbourGovernor Bill Walker on Thursday continued to expound upon the benefits of Alaska’s liquefied natural gas potential in meetings with Japan’s top energy executives and officials, who had all attended Wednesday’s LNG Producer-Consumer Conference opening ceremony.

Alaska Journal of Commerce by Tim Bradner.  In a gloomy assessment of the negotiations, Dan Fauske (NGP Photo), CEO of the state - owned Alaska Gasline Development Corp, toAlaska Governor Bill Walker, Japanese Market, LNG, AGDC, Dan Fauske, Photo by Dave Harbourld a combined meeting of the House and Senate Resources committees that, “The state (negotiating) team is very concerned about the lack of progress on many of the key commercial and fiscal issues.”  

“When it comes to trade, Japan and Korea are our closest neighbors,” Governor Walker said. “Their populations provide the large consumer base Alaska needs to export our abundant supply of natural gas.”

Governor Walker and his team met with the president of JERA Co., Inc., which was established in April when Tokyo Electric Power and Chubu Electric Power companies formed a joint marketing venture to focus on developing new energy upstream investments and fuel procurement.

“I was touched and impressed by your enthusiasm and passion for Alaska,” said JERA President Yuji Kakimi of Governor Walker’s Wednesday speech at the LNG Producer-Consumer Conference. “Alaska seems like a promising candidate for sourcing LNG.”  More....

Petroleum News.  Sen. Pete Kelly steadfastly defended funding the tax credits.... ​





Journal of Commerce by Tim Bradner.  The president of the state-own gas development corporation told state legislators Sept. 9 that Gov. Bill Walker is unlikely to call a special legislative session to ratify Alaska LNG Project agreements unless progress is made quickly on several key issues.

Walker must issue a call for a special session 30 days in advance and the clock is ticking on that deadline for a special session in mid-to-late October, which had been the governor’s hope.

No agreement on the key outstanding issues were announced as of Sept. 15.

In a gloomy assessment of the negotiations, Dan Fauske (NGP Photo), CEO of the state-owned Alaska Gasline Development Corp, told a combined meeting of the House and Senate Resources committees that, “The state (negotiating) team is very concerned about the lack of progress on many of the key commercial and fiscal issues.”  More...







Governor Walker Draws Praise From Japan’s Top Energy Executives
Governor Walker wraps up fourth day of week-long meetings touting Alaska’s LNG potential

September 17, 2015 TOKYO—Governor Bill Walker on Thursday continued to expound upon the benefits of Alaska’s liquefied natural gas potential in meetings with Japan’s top energy executives and officials, who had all attended Wednesday’s LNG Producer-Consumer Conference opening ceremony.

“When it comes to trade, Japan and Korea are our closest neighbors,” Governor Walker said. “Their populations provide the large consumer base Alaska needs to export our abundant supply of natural gas.”

Governor Walker and his team met with the president of JERA Co., Inc., which was established in April when Tokyo Electric Power and Chubu Electric Power companies formed a joint marketing venture to focus on developing new energy upstream investments and fuel procurement.

“I was touched and impressed by your enthusiasm and passion for Alaska,” said JERA President Yuji Kakimi of Governor Walker’s Wednesday speech at the LNG Producer-Consumer Conference. “Alaska seems like a promising candidate for sourcing LNG.”

Governor Walker and his team also met with the chairman and president of LNG Japan Corporation, an energy trading house.

“After the Great East Japan Earthquake, the role of LNG has become even more important to supply the power demand of our country,” said LNG Japan Corporation President Norikazu Onishi. “Japanese companies have the capacity to purchase from the United States.”

Mitsui & Company executives told Governor Walker, Department of Natural Resources Deputy Commissioner Marty Rutherford and Alaska Gas Team General Manager Audie Setters of the LNG export terminal they and a consortium of companies built in Cameron, Louisiana.

“But exporting LNG from the Gulf Coast to East Asia takes up to 26 days,” said Naoshi Kanzaki, Mitsui’s General Manager of Natural Gas. “It would be a much shorter time to export from Alaska.”

Governor Walker told Mitsui executives shipping LNG from Alaska to Japan would take seven days.

Governor Walker and his team also met with top executives of Japan Bank for International Cooperation (JBIC), a public financial institution that provides energy investment funding for Japanese companies.

“I’m confident your passion for Alaska will produce a project,” said JBIC Chief Operating Officer Koichi Yajima, who had also heard Governor Walker’s Wednesday speech. “Alaska can be a stable provider of LNG for Japan.”

Governor Walker also met in Tokyo with ExxonMobil executives: Rob Franklin, President of Gas & Power Marketing; Stephen Wong, President of Greater China/Japan Gas Marketing; and Tetsuro Takano, General Manager of LNG Market Development in Japan. Governor Walker also met with Hiroshi Imura, ConocoPhillips Japan President and Yoshiaki Nakazato, President of Sumitomo Metal Mining, which owns Pogo Gold Mine in Alaska.

Governor Walker and his team will wrap up their weeklong series of meetings Friday with Hyogo Governor Toshizo Ido and top executives of Osaka Gas and Kansai Electric Power Company. He and his team will also tour Osaka Gas Senboku LNG Terminal.

Attached: Photos of Governor Walker meeting with the President of JERA Co., Inc., LNG Japan Corporation, Mitsui, and Japan Bank for International Cooperation (JBIC).


9-17-15 Went fishing in El Cajas today...

17 September 2015 3:20am

...bud did not forget our responsibility to contribute to the archives:

Calgary Herald by James Wood and Dyland Robertson.  Sparks flew over issues of energy development, pipelines and carbon emissions as federal leaders debated the fragile state of the Canadian economy in the hard-hit heart of the oilpatch.  More....


16 September 2015 7:05am


Today's relevant energy links from Consumer Energy Alliance:

Tom Brennan, Snowflake Rebellion, Dave Harbour PhotoDave, I’ve been meaning to tell you for a long time that your website is a great source of information on what is happening in the industry in our part of the world. - Tom Brennan (NGP Photo, autographing his book, Snowflake Rebellion)

Bloomberg BusinessNew Yorkers Reap Lower Power Bills From Shale Gas Bonanza
The shale boom has reached the Big Apple. Wholesale on-peak electricity prices for Manhattan and its four neighboring boroughs averaged $40.99 a megawatt-hour since the start of July through Sept. 11. They’re headed for a record third-quarter low, based on Independent System Operator Inc. data going back to 2006.
NBC NewsMeltdown: Where Is the U.S. in the Race for the Arctic?
In the vast Arctic, melting ice caused by global warming is bringing new opportunities, and new problems, to a region that could be the next front in a very cold war — a battle that some say America is losing to the Russians. It's the Coast Guard's job to navigate these turbulent waters — no easy task with an aging fleet stationed off the southern coast of Alaska and tight purse strings nearly 5,000 miles away in Washington, D.C.
BloombergAmerica's Shale Gas Supply Is Caught in its Longest-Ever Decline
America’s shale gas boom hasn’t exactly been booming lately. Natural gas production from the seven largest U.S. shale deposits will drop for a fourth straight month in October to average 44.784 billion cubic feet a day, the lowest since March, based on an Energy Information Administration forecast released Monday. That’s the longest streak of monthly declines in government data going back to 2007.
BloombergU.S. natural gas glut could vanish in 2016, Bank of America says
The glut in U.S. natural gas could come to an end in 2016 as producers struggling with a sustained price slump cut back output. Total production in the lower 48 states may fall by 0.3 billion cubic feet a day compared with 2015, reversing the increase of 3.9 billion cubic feet a day seen in the past two years, Bank of America analysts including Sabine Schels and Francisco Blanch said in a note to clients Monday.
Fuel FixEIA: Shale output fell by 350,000 barrels a day since April
Oil production at four major U.S. shale plays is falling sharply. Government analysts say shale oil fields in Texas, Colorado, North Dakota and Ohio are set to decline by 80,000 barrels a day this month, bringing their combined daily output to 5.2 million barrels in October.
Associated PressRepublicans Oppose New Safety Rules on Offshore Drilling
Republican lawmakers on Tuesday criticized an Obama administration move to toughen standards for offshore drilling, saying the new rules would be costly for drillers and threaten to shut down oil and gas exploration off the nation's coasts.
Town Hall19 House Members Sponsor Articles of Impeachment against EPA Administrator
Nineteen members of the House of Representatives have co-sponsored articles of impeachment against Environmental Protection Agency Administrator Gina McCarthy. According to the Dallas Morning News, the resolution accuses McCarthy of perjury and making false claims to the House Committee on Science, Space and Technology.
Wall Street JournalU.S., China Build on Plan to Cut Emissions
Next week, President Barack Obama and Chinese President Xi Jinping will add to earlier pledges to cut greenhouse-gas emissions with specific guidance on what the two countries will do at home to keep climate change at bay, officials said. The United States and China announced Tuesday that cities, states and provinces in both countries would commit to taking parallel steps to address climate change.
Washington TimesObama set to push on with climate agenda
Despite bitter opposition in Congress, a series of legal setbacks and data showing its environmental regulations will drive up electricity rates, the Obama administration this week is moving full-speed ahead with its climate change agenda, prodding U.S. cities into new policies to reduce carbon emissions.
Washington ExaminerRepublican governor faces pressure not to submit to Obama's climate plan
Free-market groups are putting pressure on Michigan Republican Gov. Rick Snyder to back down from his recent decision to comply with President Obama's strict new emission rules for power plants. Snyder made the decision Sept. 1, nearly a month after Obama finalized the rules, called the Clean Power Plan.
The HillInterior chief defends Obama against liberal fire
Interior Secretary Sally Jewell fought back on Tuesday against criticisms of her agency from environmentalists who say the fossil fuel production it allows goes against President Obama’s climate goals.
Washington TimesObama announces new round of taxpayer money for solar power projects
The Obama administration on Wednesday announced $120 million in funding for solar power projects across the country, continuing its policy of using taxpayer dollars to fund the nation’s transition away from fossil fuels and toward renewable energy.
ReutersWater demand from fracking less than 1 percent of U.S. total: study
Fracking by the U.S. oil and gas industry has increased the burden on the nation's water resources, but still accounts for less than 1 percent of America's total industrial water use, according to a paper by researchers at Duke University published on Tuesday.
Wall Street JournalSaudis Make Push for Nuclear Energy
While the world’s attention has focused on Iran’s nuclear ambitions, other players in the Middle East have been laying their own plans to develop nuclear power to meet future energy needs. Saudi Arabia, the most ambitious of the group, has announced plans to build 16 reactors over the next several decades, providing a projected 15% of the country’s electricity possibly as early as 2032, according to a Saudi government website.
RigzoneOil, Gas Works on Solution to Reduce Freshwater in Fracking
While the quantity of water used for hydraulic fracturing increases, essentially with each new well put into production, industry researchers are developing ways to diminish the quality of that water – eliminating freshwater from the solution.
Fuel FixHouse Majority Leader McCarthy announces vote to repeal crude export ban at GHP gathering
The U.S. House of Representatives will move a bill repealing the decades-old ban on exporting crude oil to a vote by the end of the month, the chamber’s majority leader announced in Houston on Tuesday. The vote is a victory for a coalition of Houston-based oil producers who have lobbied for the change since a glut of oil began flowing from U.S. shale.
San Antonio Express-NewsAdministration balks at GOP-led effort to lift oil export ban
The Obama administration signaled Tuesday that it would not back legislation to authorize widespread crude exports, as a Republican-led effort to lift decades-old restrictions on foreign oil sales gained steam on Capitol Hill.
Alaska Dispatch News: Activists target federal energy leases in climate change fight
President Barack Obama has been amping up his rhetoric about addressing climate change, but a coalition of environmental organizations released a letter on Mondaypushing his administration to do more.
Midland Reporter-TelegramCongressman decries regulatory hurdles faced by energy industry
Permian Basin oil and gas operators working through the economic challenges presented by $45 crude oil prices are well aware of the other challenge they face. “This is the most unfriendly regulatory environment we’ve ever been in,” said Ben Shepperd, president of the Permian Basin Petroleum Association.
Dallas Morning NewsIn U.S. shale fields, including in Texas, oil flow slows
The flow of crude from what had been the country’s fastest-growing oil and gas regions, like Texas’ Eagle Ford shale, is declining rapidly, according to data released by the federal government this week.
Midland Star-TelegramDramatic drop in Texas drilling permits continues
As if we needed another sign of the decline in oil drilling, the Texas Railroad Commission said Tuesday that it issued only 864 drilling permits in August, a 65 percent decrease from the same month last year. The August 2015 report shows that the agency processed 730 permits to drill new oil or natural gas wells, 14 to re-enter plugged well bores and 120 to re-complete existing wells.
Akron Beacon JournalU.S. economy, auto sales boost growth in gasoline use
U.S. motor gasoline product supplied, a proxy for gasoline use in the United States, has been rising after reaching an 11-year low in 2012. Although lower gasoline prices have been an important factor in the increase in gasoline use so far in 2015, changes in the labor market and in the vehicle sales mix over the past few years also have contributed to the rise in gasoline use.
Columbus DispatchStatOil fined $223,000 over Ohio fracking-well fire
Ohio environmental regulators will fine an international oil and gas company about $223,000 for a blowout and fire last summer at a Monroe County fracking well that contaminated a nearby stream, killed fish for miles and forced about 25 people from their houses.
Philadelphia InquirerAmid trying times for industry, shale-gas conference returns
After shifting its annual conference to Western Pennsylvania last year, the shale-gas industry returns to Philadelphia on Wednesday for a two-day gathering amid an economic climate substantially subdued from the industry's early go-go years.
StateImpact PennsylvaniaFederal air rules force coal plants to clean up or shut down
John and Maureen Vilcek have lived exactly one mile from the coal-fired Homer City Generating Station in Indiana County, Pa. since the 1970s. They raised their children here, and hardly notice the constant rumble emanating from the plant up the road.


9-15-15 "Tell It Like It Is"

15 September 2015 9:28am

Yesterday: LNG Prospects Lower.  Now: Hawaii, NOT a Prospective Customer For BC and Alaska

Yes, Low Oil Prices Also Affect Service Industries and Their Thousands of Employees and Sub Contractors!

EPA Alert

Calgary's New "Tell It Like It Is Leader"

Big OCS News Today: New Moratorium!

Reader Commentary, Below, and Our Reaction

Commentary, "Telling it like it is" carries with it a responsibility for diligence and judgment: We are honored to receive so many calls and emails every week, over many years, from readers throughout the world.  We hardly ever make public note of such moving messages, but we have archived a few here.  

We are deeply grateful for our reader interaction and wish to highlight these two examples (i.e. left column) today out of respect and appreciation for all faithful readers.

Such support keeps us going strong.  We know that industry cannot often "tell it like it is," for it is natural to fear that criticizing a local, state or federal regulator can produce retribution and shareholder losses.  This in a country wherein government has grown to not fear the people, as the Constitution envisioned.  

Ordinary citizens can't often take the time to study and communicate their reaction to complex energy issues; they just don't like the general result.

News media stories and editorials are pretty much sanitized by management.

So, it falls to independents like us to try to connect the dots and keep our readers informed via links, associations and commentary.  And we want you to know that we know our credibility rests upon our sense of responsibility and judgment.

With your continued support, we will not be deterred from performing this duty as responsibly and with as much good judgment as possible.  -dh 

 ...glad you provide this information.   It keeps us IN THE LOOP!  Have a GREAT WEEK, DAVE!  Bunny and Al Chong

... Most importantly you add such wealth of Knowledge on our energy  and industrial and political business news in Alaska. 

You are read by many and are the only news letter that covers all the economic and environmental concerns that occur in Alaska and DC as well as sister energy States like North Dakota and Wyoming. 

I do not know why others do not more aggressively cover the government and especially the "Political Industry"....  Thanks, Dave.   Paul Richards

Comment: Way to go, Marcella Munro!  Could Canada be thirsting as much for anti-PC, "tell it like it is" truth-telling leaders as the U.S.?!!!

Calgary Herald by Don Braid.  Marcella Munro, Premier Rachel Notley’s suddenly controversial new hire at McDougall Centre, has a surprising answer when asked if she’s against pipelines and the oilsands.

“Me? My BMW 325i is my favourite possession. There is no planet on which I could try to argue against the oilsands. I love all the good things petroleum does for me — including driving too fast on Highway 2.”

Notley’s new Calgary “outreach” director certainly isn’t hiding under the stairs at McDougall after being fiercely attacked by the Wildrose and PCs.

EPA ALERT: Let's mark our Thursday calendars.  We would bet EPA will swiftly change tactics from apologizing for incompetence to avoiding blame and liability (i.e. Lawyer talk: "We are sorry for the inconvenience but were just doing our job to clean up industry's mess."  -dh)

Committee on Natural Resources and Committee on Oversight and Government Reform to Hold Joint Hearing on the EPA’s Animas Spill.

WASHINGTON, D.C. – On Thursday, September 17, 2015, at 10:00 AM, in Room 2167 Rayburn House Office Building, the Committee on Natural Resources and the Committee on Oversight and Government Reform will hold a joint oversight hearing titled, “EPA’s Animas Spill.”


Committee on Natural Resources and Committee on Oversight and Government Reform joint oversight hearing titled, “EPA’s Animas Spill”

WHEN: Thursday, September 17, 10:00 AM 

WHERE: 2167 Rayburn 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 House Committee on Natural Resources.  

LNG Prospects

The Asia Pacific Resilience Summit kicked off this morning, an event that showcases clean tech solutions for island grids, communities, and military applications across the Pacific. The opening keynote speaker, Governor David Ige, wasted no time in making major headlines, stating, for the first time publicly, a strong opposition to proposed LNG projects.


Yes, Low Oil Prices Also Affect Support Industries!  

Just as oil and gas producers and taxing governments are affected by low oil prices, so are the support industries and their thousands of employees, subcontractors and shareholders.  Today, we bring you a few words from our respected, anonymous energy consultant friend from the Mid Atlantic region.  -dh

"We have continually pointed out that the business models of the private equity companies and the E&P industry could hardly be more antithetical to each other. Cash flow back to the investor is a necessary part of the PE investment strategy, while E&Ps think positive cash flows are for sissies and big, dumb integrated oil companies. But the flood of money into the market and low interest rates have brought them together.  Can this marriage be salvaged?

"One ancillary thought: Given the cash shortage for E&Ps for 2016, the Service Companies may get hit worse.

"Here are some thoughts from Wunderlich Securities on the prospects:"

Below the surface of the energy market, we believe that there exists a confluence of factors ready to bubble up and impact E&Ps, OFS, and MLPs. With continually low natural gas prices, abysmal NGL prices, very weak oil prices, and no V-shaped recovery in sight...

...structural shifts in the energy landscape.... Private equity continues to have a considerable interest in the space ... some banks may look to reduce their exposure.... the amount of funds in the space could remain very high. However, the cost of those funds could also be rising as funding from private equity replaces more conventional sources. ...with commodity prices making new lows and fewer hedges in 2016 than in 2015, we think there is a confluence of factors that could alter the energy landscape in the coming 3-6 months....

Big OCS News Today

Obama Administration’s Regulatory Agenda will Result in Virtual Moratorium on Gulf Offshore Energy Development

Administration’s Policies “Undermine Safety, Rather Than Enhance It”

WASHINGTON, D.C. – Today, the House Committee on Natural Resources held an oversight hearing in New Orleans, LA, on the current state of offshore oil and gas activity in the Gulf of Mexico.  The panel received testimony from U.S. Senators David Vitter (R-LA) and Bill Cassidy (R-LA), industry representatives, and the U.S. Department of the Interior’s (DOI) Bureau of Safety and Environmental Enforcement (BSEE).

The hearing focused on the impact of federal policies on energy development in the Gulf, including DOI’s proposed well control rule, and what actions can be taken to promote the responsible development of outer Continental Shelf (OCS) resources.

"Federal regulations such as the proposed well-control threaten another moratorium by shutting down the majority of the Gulf rig fleet.  Some provisions of this rule could actually undermine safety, rather than enhance it," stated Committee on Natural Resources Chairman Rob Bishop (R-UT). "Other federal measures, such as the crude export ban, limit new market opportunities and U.S. production potential. We should encourage the production of affordable energy, not continue decades-old policies that force companies to shut-in those resources because they are not economic to bring to market."

"This administration's energy policy appears to have two objectives: cause Louisianans to lose their jobs and continue our dependence on foreign oil,” stated Rep. Garrett Graves (R-LA). “We have already been through the moratorium and permitorium where the federal government shutdown the Gulf of Mexico's energy fields. These new illogical regulations on the offshore industry –  conceived in a vacuum with insufficient stakeholder input – will not ensure safe exploration and production operations,  but they will result in less production, more supply boats tied up and more people losing their energy jobs."

“The Obama Administration was held in contempt of court over its previous moratorium in the Gulf, so now President Obama is seeking through regulation to create a new moratorium by making it prohibitively expensive to drill in the Gulf,” stated Water, Power and Oceans Subcommittee Chairman John Fleming (R-LA). “I’m glad the BSEE will finally be sitting down with industry experts, but it’s a shame they didn’t do that from the start."



9-14-15 LNG Prospects Fading

14 September 2015 2:51am

Dave Haugen, AGDC, TAPS, ASAP, Dave Harbour PhotoTom Brennan, Anchorage Daily Planet, Alaska State DeficitSee Sunday's TAPS Pioneer Op-Ed by Dave Haugen (NGP Photo-L)

*     *    *

Anchodrage Daily Planet,
"Dealing with a $3.5 billion deficit", by Tom Brennan (NGP Photo)

ALASKAN PIPE & LNG POLITICS / ECONOMICS.  ADN.  In a tense marathon meeting that one lawmaker likened to an “inquisition,” Republican legislators blasted the state’s gas line team after learning that a lack of agreement between the state and its partners in the massive Alaska LNG project may preclude a special session this fall, possibly leading to costly delays.   

CANADIAN PIPE & LNG POLITICS / ECONOMICS.  Petroleum News, by Gary Park.  The LNG train may be pulling out of the station, leaving a host of stranded passengers on the platform. That is the essence of a message from energy consultancy Wood Mackenzie, which has delivered the bleakest outlook yet for global LNG, suggesting the window slammed at least six months ago on a raf....

(Comment: Wood Mackenzie addresses (above - left) Canadian LNG project prospects.  Note that the competing Alaska project involves 1) a more expensive pipeline transporting gas to tidewater liquefaction facilities; 2) more expensive logistics; 3) a more expensive climate; and 4) a financially insolvent state government, some of whose leaders look greedily at establishing higher or newer industry taxes.   We sympathize more with producers than with a fiscally irresponsible state government.  Producers pay almost 90% of the state operating budget but are attacked by snake-oil politicians who need to demonize real-oil in order to both obscure their own senseless spending and defend their move toward even more predatory business taxes.  If politicians successfully raise taxes and do not make necessary spending cuts, they will be putting into place an economic death spiral for Alaska whose full impact will be felt more harshly with each passing year.  -dh)

ADN by Jeanette Lee Falsey.  Business leaders throughout Alaska have begun publicly staking out positions on the state's fiscal crisis in advance of next year's legislative session. It's clear not all of them agree exactly about how lawmakers should go about the delicate task of balancing revenue with spending.

There's widespread consensus about the crux of the problem: state government is spending billions more than it is bringing in and oil prices are not projected to rise high enough to prevent Alaska from burning through its savings in the next few years. Lawmakers need to make big changes in 2016 to prevent the state from going broke.  More....

Note: See our August comment regarding negative outlooks for current and pending credit ratings, entitled, "Outrageous Decisions".  -dh)

*   *   *  

Petroleum News, by ​ Alan Baily.  The Alaska Industrial Development and Export Authority has selected five businesses as finalists for evaluation of proposals for the delivery of natural gas to the City of Fairbanks. The selection comes as part of the Interior Energy Project, an initiative to bring affordable energy to Fairbanks and the surrounding region of the Alaska Interior.   The finalists are Harvest Alaska LLC, an affiliate of Hilcorp Alaska LLC; Phoenix Clean Fuels LLC; Salix Inc.; Spectrum LNG LLC; and WesPac Midstream LLC. All of the proposals involve the production of liquefied natural gas for use in Fairbanks, with two companies proposing an LNG plant on the North Slope and three companies proposing LNG from Cook Inlet. However, WesPac has also suggested the possibility of importing cheap LNG from Canada.  

(Comment.  As South Central Alaska rate payers pay for their own gas, electricity and supporting distribution and power production facilities, Fairbanks lobbyists bank on a state government teetering on insolvency to finance a brand new natural gas utility.  -dh)

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