|Natural Gas Roundtable and Senate Natural Gas Caucus Luncheon Today, June 12th at the Hart Senate Office Building, Room SH-902. The invited speakers are: U.S. Sens. Mary L. Landrieu (D-La.), Saxby Chambliss (R-GA), Heidi Heitkamp (D-ND) and John Barrasso (R-WY).|
The Hill. Chairwoman of the committee, Mary Landrieu, and her ranking member, Sen. Lisa Murkowski (NGP Photo), are discussing ways they might be able to swap President Obama's nominees to the nation's top energy regulatory commission.
Global Post/Canadian Press. Alberta Tory leadership candidate Jim Prentice (NGP Photo) says he's the one who can navigate the myriad of challenges to get the Northern Gateway pipeline built to the B.C. coast. ... "There will be no access to the Asia Pacific basin for our energy unless we strike a partnership with the government of British Columbia and a partnership with First Nations, including, in particular, the coastal First Nations," said Prentice.
House Natural Resources Committee Chairman Doc Hastings (NGP Photo) and 42 Members of Congress sent a letter yesterday to U.S. Fish and Wildlife (FWS) Director Dan Ashe and National Oceanic and Atmospheric Administration (NOAA) Administrator Kathryn Sullivan (NGP Photo) requesting a six month extension of the public comment period for three proposed Endangered Species Act (ESA) regulations.
From Robert Dillon (NGP Pnoto) of the Senate Energy Committee staff offices regarding a Washington Post story on June 9, 2014:
Having made his fortune investing in coal and other fossil fuels, billionaire Tom Steyer is pulling the ladder up behind him and promoting policies designed to drive up the cost of energy for the rest of Americans.
While Steyer may not worry about his electricity bill, the vast majority of Americans do.
Steyer, meanwhile, is now investing in solar and other renewable projects that will directly benefit from his new-found environmental activism.
The Washington Post published a story yesterday on Steyer’s investment history and his decision to launch a personal war against the fossil fuels that helped make him rich in the first place. http://wapo.st/1jiSwze
ADN -- A 13-pound, battery-powered drone catapulted from a Prudhoe Bay gravel pit on Sunday has become the first authorized commercial operation by an unmanned aircraft over land in the United States. (See our breaking news alert from yesterday.)
Our friend, Katy, of energycitizens.org, write us today that, "Recent events in Ukraine and other parts of the world have made it abundantly clear that the United States can no longer sit on the sidelines. (See our related editorial.)
"By increasing liquefied natural gas (LNG) exports", she writes, "we have an opportunity to help provide security to our allies and strengthen our position as a global energy leader. It’s good for our country, good for jobs, and good for our allies.
"That’s why I’m asking that you take one minute out of your day to send a letter in support of the Cove Point LNG project in Southern Maryland.
You have a chance to make a big difference by speaking out on this important issue. Will you make your voice heard today?
The National Journal asked Consumer Energy Alliance President David Holt (NGP Photo) to weigh in on the political liability of the EPA regulations on coal power plants. He said:
“When it comes to a debate over the cost of basic necessities such as heat or electricity voters will not give candidates much wiggle room. The candidates who can make the case that their votes will support policies that make prices affordable are going to win over their electorate.” —David Holt, president, Consumer Energy Alliance
Today's Energy In Depth Headlines:
New York should regulate, not prohibit, development. Buffalo News, Op-Ed. In 2012, New Yorkers consumed more than 1.2 trillion cubic feet of natural gas, most of it coming from shale gas being produced in other states. We need to be regulating, not prohibiting, the development of natural gas in New York.
The War On Fracking Is Over — And The Greens Lost. Daily Caller, Op-Ed. Approximately one million wells have been hydraulically fractured over the last six decades without cases of water contamination. During Congressional testimony in 2011, Environmental Protection Agency administrator Lisa Jackson stated, “I am not aware of any proven case where the fracking process itself has affected water, although there are investigations ongoing.”
Cost-effective completions. Oil & Gas Financial Journal. In early 2006, the oil and gas industry soared to never-explored heights and profitability. The cost of individual projects began to receive less scrutiny, and an arms race to develop the next industry-revolutionizing technology and grab the corresponding market share was on.
US natural gas output will set a record this year. Kansas City Star. U.S. natural gas output will reach 73 billion cubic feet a day for the first time this year as new pipelines tap into shale supplies stranded in the Marcellus formation in the Northeast, a government report said Tuesday.
Water Shortage in West Does Not Stop Development. NBC News. Used since the 1940s, hydraulic fracturing is the process of drilling and injecting fluid into the ground at high pressure in order to fracture shale rock to release natural gas and oil. The fluid is a combination of water and chemicals, mixed with sand. As of now, the method is in use in 17 states, with a total of some 82,000 wells nationwide.
Drillers give updates on where they and their plans stand. Farm and Dairy. Consol Energy will begin drilling its 9,000-acre leasehold around the Pittsburgh airport in August. The company plans to drill 8,000 feet laterals on the wells and expects production to start flowing from the airport acreage in early 2015.
Sejm approves shale gas law. Warsaw Business Journal. Poland's lower house of parliament approved legal regulations on shale gas extraction on Tuesday. The bill, an amendment to the existing geology and mining law, is aimed at speeding up work on shale deposits in the country.
South's gas could help planet. Otago Daily Times, Op-Ed. This is a direct result of the US shale gas boom. That has enabled gas to replace coal in US power plants, and natural gas produces less than half the CO2 of coal.
US shale boom benefits Asian buyers. Oil & Gas Financial Journal. Using the US natural gas production boom to promote the idea of a sustainable "global gas glut," Asian importers have successfully managed to chip away at the longstanding oil-indexed pricing mechanism for liquefied natural gas over the past two years.
Texas Gov. promotes interstate competition. Bakersfield Californian. Texas Gov. Rick Perry, unapologetic for luring California jobs to his home state, told Kern County political and business leaders Tuesday the Golden State must free industry from excessive taxation, regulation and litigation in order to become more competitive.
Colorado at Epicenter of Political HF Fight. KUNC News. Colorado is quickly becoming ground zero for a political war over the future of hydraulic fracturing. Political spending both for and against potential anti-fracking ballot measures is already washing over the state.
Lawsuit Claims Ban Not Being Enforced In Lafayette. Associated Press. Two Lafayette residents are suing Colorado officials for not enforcing a ban on hydraulic fracturing. The Daily Camera reports that the residents say that a hydraulic fracturing ban passed in November is not being enforced.
Colorado now regulates industry. Reporter-Herald, LTE. The responsible opponents of hydraulic fracturing, those that study the science behind the issue, have concluded that the short-term hydraulic fracturing process itself is essentially non-damaging. They have rightly concluded that volatile organic compounds and methane emitted in the long-term production process are one remaining area in which the industry can improve its performance.
Will Potential HF Compromise Really Stop the Fight? CBS-Local, Column. Governor John Hickenlooper, along with the two largest gas and oil operators in Colorado, is shopping a new compromise to avoid potential hydraulic fracturing initiatives from appearing on the November ballot. Like any compromise, selling the idea to both sides of the aisle is difficult. But that is a political reality that is true for almost any significant compromise.
Loveland vote on separate ballot from county. The Coloradoan. On June 24, the city of Loveland will count citizens’ votes for or against a proposed two-year moratorium on hydraulic fracturing, a controversial oil and gas extraction process that has already been restricted in five Front Range cities, including Fort Collins.
Colorado could be 'ground zero' for debate. KUSA News. If state lawmakers can't reach a compromise on hydraulic fracturing, it could lead to a battle on the ballot getting national attention. Late Tuesday, it appeared a compromise drafted by Governor Hickenlooper and some of his democratic allies was falling apart. The Denver Business Journal reported the Colorado Oil and Gas Association voted against the proposal, after it sat at the table working to draft it.
Energy companies wait on IDNR. Rock River Times. A bill aimed to skip the rule-drafting process and begin hydraulic fracturing in Illinois recently died in the hands of legislators. The bill would have allowed hydraulic fracturing to begin while rules for the practice were still being drafted. It would have also imposed a moratorium in northern Illinois.
Regulating carbon dioxide emissions. Rock River Times, Op-Ed. Switching to natural gas could generate pressure to accelerate hydraulic fracturing within the state. Fortunately, an effort to weaken state HF standards was recently blocked.
Analyst says Australian shale play could benefit Lafayette. Daily Advertiser. Two oil conferences kick off this week: The Global Petroleum Show opened Monday in Calgary, Canada, and the Louisiana Energy Conference kicks off today in New Orleans. At both, attendees are sure to discuss where the next big boom will happen.
Libertarian conservatism at work in NC legislature. News & Observer, Column. On many issues, the legislature has strongly tilted public policy toward market forces – and against anything they perceive as being an impediment to the market, whether it involves the environment, health insurance, education, worker injury claims or taxes. So the legislature is trying to jump-start natural gas exploration of the state’s shale deposits –called hydraulic fracturing– by paying for some initial testing to entice energy companies to begin operating here.
Senate GOP calls on candidate to denounce 'dirty' green money. News & Observer. The state Senate Republican caucus on Tuesday rallied behind one of its own, Sen. Chad Barefoot, who is the object of a barrage of TV ads by national and state environmental groups. The News & Observer reported Tuesday that Barefoot, a Republican who represents parts of Wake and Franklin counties, is one of four GOP senators being targeted by a $1 million-plus advertising campaign because of their support of hydraulic fracturing.
House budgets zero dollars to drill shale-gas test holes. Greensboro News & Record. Republican leaders set aside no money in the state House’s budget proposal Tuesday to probe for shale-gas reserves, in contrast to the proposals recently made public by Gov. Pat McCrory and the N.C. Senate.
Bakken production growth expected to slow as the play matures. Oil & Gas Journal. Production growth from the Bakken tight oil formation is expected to moderate in the next 2 years as older wells decline and new wells strain to offset natural production declines, analysis by Wood Mackenzie Ltd. shows. The research and consulting firm expects Bakken oil production will increase at a rate of 100,000 b/d/year, rising from an average of 1.1 million b/d in 2014 to 1.7 million in 2020.
Statoil tackles Bakken flaring with innovation. Oil & Gas Journal. Statoil North America Inc. is at the forefront of efforts to reduce flaring in the Bakken shale in North Dakota, pilot-testing a mobile system that converts associated gas into CNG at the well site. The system, called the Last Mile Fueling Solution, uses a device the size of a standard 8 ft-by-20 ft. shipping container to compress associated gas.
MDU expands North Dakota presence with greenfield refinery. Oil & Gas Journal. A greenfield refinery, an interstate gas pipeline, and production from the Bakken shale are just a few of the projects being pursued by MDU Resources Group Inc. in the rolling prairie of North Dakota.
Marcellus continues to defy expectations. Oil & Gas Journal. Shale has been the primary driver of US gas supply growth since 2007, and the Marcellus shale has been the largest single contributor to rising production. Marcellus production topped 14.5 bcfd in March and is expected to account for nearly one fourth of all US gas output by 2015, according to a report by Morningstar Inc.
Bulgarian professor visits Marcellus region. Associated Press. Georgiev, assistant professor of economics at Sofia University in Bulgaria, spent the past month researching the economic impacts of Marcellus Shale drilling in Allegheny and Washington counties. By the end of his stay, he concluded that natural gas drilling in Bulgaria would "definitely be beneficial" from an economic perspective.
Critics challenge Sunoco Pipeline as public utility. Philadelphia Inquirer. Sunoco is repurposing an 83-year-old refined-products pipeline to transport Marcellus Shale natural-gas liquids to Marcus Hook, where most of the material - ethane and propane - would be exported.
NY top court considers local bans on drilling. Straus News. New York's highest court is expected to decide by the Fourth of July whether municipalities can use local zoning laws to ban shale gas development using hydraulic fracturing within their borders.
‘Manufacturing renaissance ahead’ for shale gas industry. Columbus Business First. Oil and gas shale drilling in the Appalachian Basin is rapidly developing, but there is still a laundry list of challenges facing the industry, a law firm in the region says in a new report. “The shale gas industry is entering a period of transition – from its startup years to an era of production efficiencies and a manufacturing renaissance ahead,” Pittsburgh-based Babst Calland says in its annual report.
Ohio approves 32 new Utica shale permits last week. Akron Beacon Journal. A total of 32 new Utica shale permits were paproved as of June 7 by the Ohio Department of Natural Resources. That included three in Belmont County, two in Carroll County, one in Guernsey County, two in Harrison County, one in Hefferson County, seven in Monroe County, 14 in Noble County, one in Tuscarawas County and one in Washignton County.
Hilcorp Gets More Well Permits for Western Pa. Youngstown Business Journal. Hilcorp Energy Co. continues to seek oil and gas prospects in western Pennsylvania three months after one of its drilling operations was linked to a spate of small earthquakes that rattled the eastern edge of Mahoning County. The Pennsylvania Department of Environmental Protection issued five new permits to Hilcorp June 3, authorizing the company to drill horizontal wells in Mercer County, the agency reports.
McClendon announces billions more in shale investment. WKSU. A billboard on I-77 south of Canton announces that American Energy Partners is hiring. And the founder of that partnership -- Aubrey McClendon -- announced this week he’s investing $1.75 billion in the Utica and Marcellus shale regions of Ohio, Pennsylvania and West Virginia.
Pinnergy will develop an Eagle Ford disposal well. San Antonio Business Journal. Pinnergy Ltd. will begin development on a wastewater disposal well in the Eagle Ford Shale in the next 60 days, the Austin-based oilfield services firm’s top officer says.
New distribution facility will hire 20 south of San Antonio. San Antonio Business Journal. Leading chemical distributor Univar Inc. has begun work on a new 52,000-square-foot facility south of San Antonio and plans to hire 20 people within its first year of operation, officials say. The Redmond, Wash.-based company in April confirmed plans to develop a warehouse on 12 acres of land in the nearby city of Elmendorf. However, it didn’t break ground until late last month.
Permian operators increasingly target shale. Oil & Gas Journal. Horizontal drilling last year overtook vertical drilling in the basin as new technology and high oil prices rejuvenated the legacy oil play and independent operators like Pioneer Natural Resources Co. and Approach Resources Inc. tapped into shale formations previously considered uneconomic. "The Permian is one of the hottest regions in North America right now," Benjamin Shattuck, analyst with Wood Mackenzie Ltd., told UOGR.
FTS will go to China with new Sinopec joint venture. Dallas Business Journal. FTS International will be taking its hydraulic fracturing talents to China through a joint venture with Sinopec Group, the companies announced Tuesday. Fort Worth-based FTS International will own 45 percent of SinoFTS while Sinopec will own 55 percent. It’s the first collaboration between a non-Chinese well completion company and a national Chinese company.
2:24 PM, ADT: You Read It Here First. From Julie Hasquet at BP comes this breaking news:
"BP and AeroVironment are deploying an Unmanned Aerial System (UAS, BP Photo) technology at Prudhoe Bay, marking the first time (i.e. our emphasis added) the Federal Aviation Administration (FAA) has granted permission for UAS routine commercial services over land in the United States.
"The UAS technology has potential to improve safety, efficiency and the reliability of BP’s Alaska North Slope infrastructure and maintenance programs.
"BP’s vendor, AeroVironment, is performing high-accuracy land surveying and LIDAR mapping in Greater Prudhoe Bay. The UAS flight operation will survey and map Alaska North Slope gravel roads and pads using LIDAR (Light Detection and Ranging) 3D technology. This marks the first time UAS technology has been used over land in compliance with FAA regulations."
Check out this technology on the BP You Tube channel: https://www.youtube.com/watch?v=05t-dg6nFpE&feature=youtu.be FAA press release: http://www.faa.gov/news/press_releases/news_story.cfm?newsId=16354
Comment: Our readers know that over a year ago the AlaskaLegislature passed and Governor Sean Parnell (NGP Photo) signed into law, SB 21, which reformed one of the most predatory, onerous oil production tax laws in the free world.
Six Alaska Native regional corporations formed their own ballot measure group called No One On One. “It is our concern for the future of the state and economy that we stand before you today and ask you to vote no on 1,” said Rex Rock (NGP Photo), president and CEO of Arctic Slope Regional Corp.
“Our board unanimously voted to join the coalition because of how important the oil industry is to our state,” said Laura Edmondson, chief financial officer for Bering Strait.
Jason Metrokin, president of Bristol Bay Native Corp., said his company’s oil subsidiaries helped the Alaska Native regional corporation reach its goal of doubling shareholder hire and wages.
We’ve witnessed the industry’s commitment to new investment and have seen for ourselves the rebound in jobs and activity in the oil and gas industry and we want to see that trend continue,” said Sophie Minich, president of Cook Inlet Region Inc.
Doyon, Ltd., owns seven rigs on the North Slope. “We saw two of our rigs go down right away” when ACES passed, said Aaron Schutt, Doyon president. “Each rig has about 80 employees, and 95 percent of our employees are Alaskans, and about half are Doyon shareholders.”
NANA has worked on the North Slope for 35 years and has 4,000 employees supporting the oil industry, including 1,000 shareholders, said Helvi Sandvik, president of NANA Development Corp.
While the state still reaps huge rewards from the oil production tax, the oil income tax, oil and gas royalties, and oil industry property taxes, SB 21 improved the climate of investment. More projects are now being undertaken or planned than before passage of the Act.
In August, a citizens referendum supported by legislators voting against SB 21, environmental activists and a few other special interests, will determine whether the SB 21 reforms will live on or be repealed.
Thoughtful Alaskans, like our readers, are mostly concluding that the initiative should be voted down. Others, who believe the former tax structure has no effect on investment, will be voting for the Proposition 1 repeal.
Groups all over Alaska are lining up, for or against repeal. In the sidebar, is a report from the "Keep Alaska Competitive" group, reflecting the position of some of Alaska's major Native corporations. -dh
Houston Chronicle. “It’s the new way to come to the United States illegally,” said Congressman Ted Poe. “This administration will not enforce the rule of law on the border.” (Note: We provide this link to demonstrate that the Administration is not only crippling the rule of law with respect to overreaching energy policies, but also in the area of national security. -dh)
The Hill. Speaker John Boehner on Tuesday harshly criticized the swap of five Taliban detainees for one U.S. soldier, saying the U.S. would “pay” for President Obama’s decision to negotiate with terrorists.
(Note: We provide this link because the US has now signaled to terrorists that we will 'negotiate for hostages'...and this affects our readers directly.
This ends another important American tradition of not encouraging the proliferation of kidnappings.
Accordingly, since natural resource companies have the reputation for 'deep pockets' we know our American and Canadian readers will be especially vigilant in the future about their own safety as a result of America's having traded an alleged deserter for five of the most deadly, Taliban terrorists.
Though largely unreported, this Obama Administration act has a disproportionatly larger impact on oil, gas, mining, support companies and other multi-national corporations than on tourists in general or even on government employees. -dh)
|World Energy, by George Backwell. ...a fraction of natural gas projects ... will become reality as high costs and weakening gas prices....|
Alaska Dispatch, by Brigham McCown.
As political shenanigans continue to delay approval of the Keystone XL pipeline, Alaska voters hold the key to avoiding a similar fate for what could be North America’s largest pipeline project (i.e. Natural gas pipeline).
Washington Examiner by Mark Tapscott. Another scientist has more bad news for global warming advocates who claim that Americans are killing Arctic Polar Bears.... *** Professor Matthew Cronin (NGP Photo) of the University of Alaska at Fairbanks studied the genetic histories of the three bear species, brown, black and polar (NGP Photo). *** What Cronin found casts significant new doubt about claims that the furry white monsters of the Arctic are soon going to be extinct if America doesn't stop causing global warming by burning fossil fuels. *** Cronin has been studying animal genetics for 25 years and his latest study will be made public in a paper to be published shortly in the online Journal of Heredity, according to UAF's Nancy Tarnai. (See a related article)
Fuel Fix. American Energy Partners said Monday it plans to spend $4.25 billion to expand into Texas and West Virginia for the first time and to snap up more land in Ohio.
The three announced acquisitions are the latest — and the most expensive — in a series of moves by Aubrey McClendon (NGP Photo), one of the first wildcatters to capitalize on the U.S. shale boom, to rebuild his empire after he relinquished his perch at the top of Chesapeake Energy last year.
From the National Ocean Policy Coalition: The U.S. Arctic Research Commission's daily update (last week) included an announcement by the White House Office of Science and Technology Policy and the National Ocean Council that former Alaska State Rep. Beth Kerttula has been selected to serve as National Ocean Council Office (NOC Office) Director. Kerttula replaces Dr. Brad Moran, who has been serving as Acting NOC Office Director since November 2013. Coverage of the announcement includes articles in the Alaska Daily Dispatch,Anchorage Daily News, and KTOO News. KTOO reports that Kerttula will serve as NOC Office Director for one year, with an option to remain through the remainder of the Obama Administration.
Calgary Herald, by Stephen Ewart. The military crisis in Ukraine has brought into focus Europe's dependence on Russian natural resources for 30 per cent of its energy requirements just as Prime Minister Stephen Harper is in Europe for the G7 Summit and the D-Day anniversary events Friday in Normandy.
With coercion of Russian oil supplies deemed "unacceptable" by political leaders in Europe this week, it appears crude from Canada's oilsands has become much more acceptable.
Consumer Energy Alliance (CEA) tells us that last Thursday, CEA-Florida joined PACE for the Gulf Coast Energy Forum in Mobile, Alabama during which executives from five southern utilities raised concerns about the EPA’s new rules on carbon emissions for existing power plants. As Alabama.com noted, one of the biggest concerns highlighted by the executives was the rule’s effect on the energy mix and the likely dependence on natural gas that will result.
The Daily Caller: EPA Rules To ‘Necessarily Skyrocket’ U.S. Electricity Prices
U.S. electricity rates are set to rise more than 10 percent by 2020 because of onerous federal environmental regulations on coal-fired power plants, according to an analysis by American Action Forum. This means consumers could be forced to pay $150 more each year for electricity due to Obama administration power plant regulations.
E&E News: “The United Mine Workers of America is blasting the Obama administration's new proposal for controlling greenhouse gas emissions from existing power plants, which will likely contribute to the loss of coal mining jobs. "The UMWA has not and does not dispute the science regarding climate change," Cecil Roberts, the group's international president, said in a statement this afternoon. "Our dispute is with how our government is going about addressing it, and on whom the administration is placing the greatest burden in dealing with this challenge," he added. Roberts said the rule would lead to "long-term and irreversible job losses." The union says it calculated the potential direct coal generation job losses at 75,000 by 2020.”
6-6-14 Alaska D-Day Energy Speech and CBC 70th Normandy Rememberance - Pedro van Meurs On Mexican Constitutional Amendments
70th Annual Remembrance Of The Normandy Invasion: D-Day
We're now watching the Canadian Broadcast Corporation's 70th D-Day Anniversary remembrance online, here.
Earlier this morning in Alaska, we heard former Anchorage Mayor George Wuerch (NGP Photo), a Marine veteran himself, give a moving address to the Alaska Miners Association in his role as Chairman of Veterans For Energy Security (Alaska Chapter).
His speech title could, indeed, have been, "National Security Depends On Energy Security".
Wuerch reminded the audience that the attack on Pearl Harbor (Your author's parents were there) began following President's Roosevelt's decision to stop exporting fuel and steel in support of the imperialistic and expansionist Japanese government.
Access to abundant energy supplies -- supported by domestic rationing during WWII -- enabled the United States to mobilize 67 Army and 6 Marine divisions, Wuerch said, along with 2710 'Liberty Ships', while supplying Russia with 85,000 trucks, 8600 tanks and 6100 airplanes.
|Yesterday, US Senator Lisa Murkowski's office sent us her reaction to the EPA's Power Plant rule: “I am greatly concerned EPA’s rules – particularly in combination with one another – will result in a grid that is less stable and less reliable. The cumulative effect of federal regulations on baseload capacity – resources such as coal and nuclear which provide electricity on demand – must be examined and appreciated, not discounted or ignored.”|
Wuerch warned against excessive governmental regulation that could constrict energy production and threaten the country's ability to defend itself.
Examples he gave of Federal overreach are very familiar to our readers, including unlawful use of the Clean Water Act, prohibiting projects from even petitioning the government for legal permits to operate; improper use of the Endangered Species Act and the disastrous effect implementation of the EPA's carbon guidelines this week will have on the economy--particularly among the poor.
"The Keystone XL pipeline would provide secure supplies of crude oil to America's Gulf Coast refineries, helping to replace crude imports from Arab countries," Wuerch noted.
Today, we also think of another Marine veteran, community leader, our dear friend and reader, Maynard Tapp (NGP Photo).
Tapp's birthday is today, always on D-Day.
Tapp is co-owner of Hawk Consultants, LLC., and a tireless supporter of Alaska's oil and gas industry and the economic benefits it provides to all Alaskans.
As we remember D-Day, we remember all veterans like Mayor Wuerch (Thank you for your message today) and Maynard Tapp (Happy Birthday), one of the Alaska Support Industry Alliance's strongest voices in support of free enterprise and energy security on America's Last Frontier.
May their dedicated voices in support of freedom long be heard and always remembered. -dh
"Two-thirds of Americans -- and Governors of states hosting the pipeline right of way -- support the project. The Obama Administration's opposition to the Keystone Pipeline has delayed the project for over 5 years, longer than it took this country to win WWII," he said.
Wuerch talked about energy independence, saying that the US is now the world's largest natural gas producer. He said that USA Today predicts the US will be the largest crude oil exporter by 2020.
With oil accounting for reducing last year's trade deficit by over $60 billion, continued growth in oil production bodes well for a stronger balance of payments position over the next few years.
But current, political opposition to fossil energy production could reduce the potential and the optimism.
"The Administration's opposition to reasonable development of the National Petroleum Reserve - Alaska and a small sliver (the 1002 area) of the Arctic National Wildlife Refuge is producing a loss of one to nine million jobs."
"Now is the time for energy policies to further energy independence," he concluded.
Our friend, Pedro van Meurs (NGP Photo) writes us that,
"The passing of the Constitutional amendments in Mexico was a very positive development which has significant potential to induce large scale investments in the country, increase petroleum production and create significant revenues for government, business opportunities and employment over the coming decades."
He offers, "a commentary on this Constitutional amendments ... on my website. I prepared this document at the request of various parties. If you are interested in downloading this document please click here.
I hope this document is of interest to you. If you have any questions or comments feel free to contact me.
Pedro van Meurs
Van Meurs Corporation
PO Box CR-56766 # 1261
Comment: We associate a current Governing Magazine article by Liz Farmer, below, with Matt Buxton's excellent News Miner review of Alaska gas pipeline project funding.
We have long alerted readers that with government participation in the traditional, private market comes an unintended list of future consequences to be faced by not only this, but future generations of public officials who had little or nothing to do with the original public funding decisions.
Current and future citizens, in these circumstances, should be prepared to absorb the same risks taken by a private investor -- the risk of losing or wasting some or all of the investment.
If public officials present public spending proposals without fully disclosing the risk, they violate the very disclosure statements and objective, due diligence research, undertaken by prudent investors of corporations, trusts, partnerships and participants in loans, lease agreements, sales contracts, divorce settlements and other transactions.
As in all of life's business dealings, citizens approving the public use of funds to purchase or participate in private projects should hold dear the age old maxim: Caveat emptor (Let the buyer beware"). -dh
Fairbanks News Miner, by Matt Buxton. Even though the state has approved millions in funding, selected a global infrastructure development company and approved millions more for infrastructure in Fairbanks, it’s clear that getting natural gas off the North Slope is still a “massive undertaking.”
The Alaska Industrial Development and Energy Authority’s Board of Directors met in Anchorage on Wednesday to hear an update on the Interior Energy Project, with the most critical part being the progress on a natural gas processing facility on the North Slope. More here.
The temptation of the quick fiscal fix has seduced just about every lawmaker at one time or another….
What follows is Governing’s list of the most tempting financial schemes that can severely weaken a government’s fiscal future….
1. Balancing the Budget with One-Time Fixes
States and many cities have a legal obligation to balance their budgets each year. But there are all sorts of tricky maneuvers ….
2. Ignoring the Long-Term Consequences of a Deal
Few governments have a long-term financial plan and even fewer have multiyear budgets. Many don’t even require ….
3. Taking on Too Much
… development projects funded by municipal bonds.
4. Misapplying a Temporary Windfall
Every economic boom is followed by a bust, but elected officials are often tempted to spend money as if that weren’t true, using one-time surpluses ….
5. Shortchanging Pension Obligations
… chronic unwillingness by lawmakers to contribute what is necessary to keep the plans fully funded.
6. Making Unrealistic Projections About Rate of Return
…targeting a pension funding level that’s lower than what most people might consider prudent,” says Donald Fuerst….
7. Ignoring Financial Checks and Balances
…where there are many different ways to count the same revenue, weak financial controls can lead to serious dollar losses