Miss a day
Miss a lot

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.  -dh

ConocoPhillips ad, Northern Gas Pipelines, Logo


4-7-15 Gasline Confirmations Today

07 April 2015 3:46pm


Calgary Herald by Stephen Ewart.  Record oil production, increasingly complex energy transportation issues and unprecedented public engagement aren’t enough to prevent a nearly 25 per cent cut to the budget and large reduction in staff at the National Energy Board over the next two years.

News of the “operational realities” confronting the NEB — which will mean 73 fewer employees — emerged late last week with release of its 2015-16 Report on Plans and Priorities.

The reason for the drop-off in funding is easily explained.(More)

KTOO.  The Senate Finance Committee plans confirmation hearings for Gov. Bill Walker’s appointees to the Alaska Gasline Development Corp. board.

The hearings for Rick Halford, Joe Paskvan and Hugh Short are scheduled for Tuesday (Today).

They would replace three members removed by Walker earlier this year, including former pipeline and oil company executives.

Some lawmakers have raised questions .... (More)

Today's RELEVANT Consumer Energy Alliance energy links: 

Bill Martinez Live: Bill Martinez Show April 7, 2015 Michael Whatley (NGP Photo) Interview 
Michael Whatley, Consumer Energy Alliance, Bill Martinez Interview, Photo by Dave HarbourAssociated Press: Greenpeace activists board drill rig retained by Shell for Arctic offshore drilling
Six Greenpeace activists protesting Arctic offshore drilling on Monday boarded a drill rig as it was transported across the Pacific Ocean toward Seattle, where it will be staged for drilling on Shell leases in Alaska waters. The 400-foot Polar Pioneer, owned by Transocean Ltd., was on board a heavy-lift vessel about 750 miles northwest of Hawaii when the activists approached in inflatable boats and used climbing gear to get on board, Greenpeace spokesman Travis Nichols said.
Real Clear Energy: Keystone XL Traded For Arctic Drilling Rights?
Few debates in energy have been more contentious than Keystone XL (KXL). Environmental groups opposed the pipeline and turned out a grass roots movement that astonished even battle weary Enviros. It also caused serious problems for the industry as their assets became stranded and they were forced to ship crude by rail and barge. It is estimated that this amounted to approximately $17B over the past few years in lost revenue due to public accountability campaigns. But it looks as though the Obama Administration and Big Oil merely traded KXL for Arctic drilling rights.
National Journal: Life After Keystone: The Future of the Climate Movement When the Pipeline Battle Ends
President Obama could reject or approve the controversial Keystone XL pipeline any day, week or month now. And as a decision looms, environmentalists face a daunting question: Can they recreate the kind of mass appeal that Keystone inspires when the pipeline battle ends?
The New York Times: Laurence Tribe Fights Climate Case Against Star Pupil From Harvard, President Obama
Laurence H. Tribe, the highly regarded liberal scholar of constitutional law, still speaks of President Obama as a proud teacher would of a star student. “He was one of the most amazing research assistants I’ve ever had,” Mr. Tribe said in a recent interview. Mr. Obama worked for him at Harvard Law School, where Mr. Tribe has taught for four decades.
CBS News: Is oil and gas to blame for Okla. earthquakes?
Kim Hatfield, with the Oklahoma Independent Petroleum Association, says the science to prove a definitive link simply isn't there. "Coincidence is not correlation," said Hatfield. "This area has been seismically active over eons and the fact that this is unprecedented in our experience doesn't necessarily mean it hasn't happened before."
The Independent: A disaster waiting to happen in Oklahoma?
Until very recently earthquakes were a rare occurrence in Oklahoma. Not any more. In 2008, the U.S. Geological Survey recorded just two earthquakes above 3.0 on the Richter Scale in Oklahoma. In 2014 it recorded 585, including 15 that measured over 4.0. The state is on target to break through 800 in 2015, taking California’s crown as the most active seismic state in the country.
Wall Street Journal: Fewer oil trains ply America’s rails
The growth in oil-train shipments fueled by the U.S. energy boom has stalled in recent months, dampened by safety problems and low crude prices.
Associated Press: Oil train cars need urgent upgrades
A spokesman for the American Petroleum Institute said the organization supports a "science-based" approach to safety that includes track maintenance and repairs in addition to any tank car upgrades.
Bloomberg: Safety Board Urges Aggressive Timetable to Replace Oil Tank Cars
U.S. railroad cars used to haul oil should be upgraded or replaced within five years with sturdier models better able to prevent explosions after derailments, federal safety investigators said in a proposal made public Monday.
Houston Chronicle: Oil's jolt means jingle for summer travelers
The global crude collapse that has jolted the oil industry will usher in the least expensive driving season in years, with pump prices expected to hover near $2 per gallon at some stations. Peak-season gasoline hasn’t been that low since 2009 during the economic downturn.
Statesman Journal: Oregon debates HF moratorium
A legislative committee will hear testimony Tuesday on a bill that would put a 10-year moratorium on hydraulic fracturing for oil and gas exploration and production in the state. Proponents tout the economic benefits brought to communities with wells and the energy independence they afford.
The Motley Fool: The Biggest Threat Facing Offshore Drillers Keeps Getting Worse
Few industries have been so negatively affected by the oil crash as offshore drillers. In the past I've attempted to find drillers whose contract backlogs were relatively insulated from the downturn. To this effect I recommended SeaDrill Partners, because just 20% of its rigs had contracts expiring through 2016. Now however, news of contract cancellations from BP mean that the risk of contract cancellations -- which I believe to be the biggest risk to the industry -- is rising and in a most alarming way. Find out why and what it might mean for your portfolio.
The Hill: Hope for bipartisan action on energy
Hold onto your hats, there just may be bipartisan legislation on the horizon. And who would have guessed that after the hyper-partisan Keystone XL showdown, the topic to come together on would be of all things, energy? First, in the wee hours of March 27, after the contentious budget resolution was passed at 3 a.m., Sens. Rob Portman (R-Ohio) and Jeanne Shaheen (D-N.H.) appeared on a nearly empty Senate floor and quietly passed a stripped down version of their energy efficiency bill with a unanimous vote of two.
Fuel Fix: U.S. refiners can bulk up to consume more domestic oil
The United States can boost its consumption of the light oil increasingly flowing out of domestic wells today, a new government report finds, even as it warns that potential changes to the nation’s longstanding ban on raw crude exports risk undermining those investments.
Fuel Fix: Tensions ignite on East Coast as White House weighs Atlantic drilling
The prospect of a new generation of Atlantic drilling is stirring a heated debate up and down the East Coast, as fierce opponents warn that offshore oil development could jeopardize marine life and tourism-based economies. Oil industry leaders, meanwhile, are touting the potential jobs and economic gains that could flow along with crude from wells drilled at least 50 miles off the shores of Virginia, Georgia and the Carolinas. They envision a new frontier of Atlantic production that could emerge as a profitable replacement to shale oil extraction or continued pumping from the heavily tapped Gulf of Mexico.
Huffington Post: Illinois poll shows strong opposition to HF
Nearly half of Illinois voters oppose fracking, according to a new poll by the Simon Institute. The statewide poll reveals 48.6 percent oppose fracking while only 31.8 percent believe it should be encouraged, even if there are economic benefits. Opponents outnumber supporters in all regions of the state, including downstate where fracking is promoted as a jobs plan.
Philadelphia Inquirer: Gas tax can’t ignore prices
It's Wolf's misfortune to be attempting to address this failure in the midst of a gas glut. Given that the regional natural-gas price has plummeted by more than half over the past year, legislators and others have rightly questioned whether the governor's projected $1 billion a year in revenue from the levy is realistic.
Lancaster Online: Restoring aging county-owned bridges tied to impact fee
The Lancaster County commissioners are addressing the problem by turning to impact fee revenue from natural gas drillers. As of February, the county had $2.2 million available, said county engineer Scott Russell of Rettew Associates. The commissioners are counting on continuing impact fee revenue to help fund the replacement or repair of nearly all 44 county-owned concrete or steel bridges over the next five years.
Power Source: EPA analysis details water usage in HF
The EPA’s report shows that many drillers in Pennsylvania and Ohio are reusing water more often than their counterparts in the West. More than 70 percent of disclosures that identified water sources in Ohio and Pennsylvania identified some amount of reused and associated types of water in base fluids.
The Post and Courier: Seismic testing permits go to public hearing
Nine companies so far want to use seismic guns to search for oil and natural gas off the South Carolina coast. The federal permits for them are up for public hearingWednesday. The hearing comes amid a swell of opposition that has been mounting since federal regulators last year gave a preliminary nod to the permits, opening an evaluation period by federal and state agencies.
Baltimore Sun: HF moratorium passes senate
By a 45-2 vote, senators sent the measure to the House, which has passed a version of the bill that environmental advocates believe is stronger. The House bill calls for a three-year moratorium and further study of the health and economic development impact of the practice. The Senate bill does not require a study.
Associated Press: ‘Fight Club’ actor speaks out against HF
In films, he’s played poker with Matt Damon and fought with Brad Pitt. Now actor Edward Norton is lending his voice to the anti-fracking campaign in Maryland.
San Antonio Business Journal: Series of earthquakes shakes Permian Basin in recent weeks
A series of three earthquakes hit the Permian Basin along the oil and natural gas-rich lands along the Pecos and Reeves county lines over the past two weeks, according to data from the U.S. Geological Survey.
Santa Fe New Mexican: NM oil production holds steady
Newly released numbers indicate that the pace of oil production in New Mexico did not slow in January. According to figures from the New Mexico Energy, Minerals and Natural Resources Department, oil-and-gas companies doing business in the state in January reported a production level of almost 13.6 million barrels of oil.
CBC News: HF criticism spreads, even in Alberta and Texas
The Alberta Energy Regulator, which is responsible for enforcing industry policies, rejects claims that fracking affects human or animal health. The AER says hydraulic fracturing, in use in Alberta since the 1950s, is one of several well-established methods of recovering oil and gas.



06 April 2015 1:42pm

Today's Relevant Energy Links Courtesy of Consumer Energy Alliance:

The Register-Guard: A roundup of local news 
Fifth Street Public Market owner Brian Obie says the Eugene City Council’s planned changes to its Multi-Unit Property Tax Exemption program could derail his plans for a $54 million mixed-use project downtown. Obie signed an option on a 99-year lease with Lane County in 2013 on two acres of land on Sixth Street, in hopes of building a mixture of apartments and condominiums, shops and restaurants, and possible amenities ranging from perhaps a grocery store to a movie theater.
Oil and Gas Daily: Shell responds to federal decision on Alaskan waters
Shell said there are a series of contingencies to consider after a U.S. federal decision to reaffirm a lease for the arctic waters off the coast of Alaska. The Department of Interior this week affirmed a 2008 lease sale for exploration in the Chukchi Sea off the coast of Alaska. The decision clears the way for a formal review of exploration plans in the region, which will include an environmental analysis.
Bloomberg: Record Gasoline Output to Curb Biggest U.S. Oil Glut in 85 Years
Refiners are poised to make gasoline at a record pace this year, keeping the biggest U.S. crude glut in more than 80 years from overflowing storage. They’re enjoying the best margins in two years as they finish seasonal maintenance of their plants before the summer driving season. They’ll increase output to meet consumer demand and they’ve added more than 100,000 barrels a day of capacity since last summer, when they processed the most oil on record.
U.S. News & World Report: Keystone XL Likely Not on the Table in Iran Nuclear Deal
Let the lobbying begin. One day after announcing a framework nuclear agreement with Iran, President Barack Obama now faces the unenviable task of winning Congress' blessing on the potential deal. "The battle is on here and in Iran," says Paul Sullivan, professor of economics at National Defense University.
Houston Chronicle: Pipeline projects arise as need grows to carry Canadian crude
With the Keystone XL pipeline caught up in a political stalemate, companies with links to Houston have stepped in to help Canadian crude find a way to market. The Keystone line is just one of several that could carry crude from Alberta's oil sands and from conventional plays to refineries in North America and beyond.
Newsweek: In California, farmers rely on wastewater to weather drought
For every barrel of oil Chevron produces in its Kern River oil field, another 10 barrels of salty wastewater come up with it. So Chevron is selling about 500,000 barrels of water per day, or 21 million gallons, back to the Cawelo Water District—the local water district that delivers water to farmers within a seven-mile slice of Kern County—at an undisclosed amount, but “essentially ‘at cost,’” according to Chevron spokesman Cameron Van Ast. In a time when freshwater in the Central Valley is selling at up to 10 times the typical cost, it’s a good deal for farmers.
The New Yorker: Weather underground
Until 2008, Oklahoma experienced an average of one to two earthquakes of 3.0 magnitude or greater each year. (Magnitude-3.0 earthquakes tend to be felt, while smaller earthquakes may be noticed only by scientific equipment or by people close to the epicenter.) In 2009, there were twenty. The next year, there were forty-two. In 2014, there were five hundred and eighty-five, nearly triple the rate of California. Including smaller earthquakes in the count, there were more than five thousand. This year, there has been an average of two earthquakes a day of magnitude 3.0 or greater.
The Washington Times: Obama finalizes plans to ban oil and gas drilling in ‘undisturbed’ Alaskan refuge
President Obama issued his administration’s finalized recommendations late Friday to expand protected areas of Alaska’s Arctic National Wildlife Refuge, drawing a furious response from the state’s Republican senators. In a letter to Speaker John A. Boehner, Mr. Obama reiterated his intention to preserve the vast energy-rich tract and called on Congress to block about 12 million acres from oil and natural gas drilling.
Reuters: Obama asks Congress to widen Arctic refuge protections
The Obama administration on Friday finalized its recommendation to expand protected areas of Alaska's Arctic National Wildlife Refuge, calling on Congress to block about 12 million acres (5 million hectares) from oil and gas drilling. U.S. President Barack Obama, in a letter to House Speaker John Boehner released by the White House, stood by his administration's earlier recommendation to preserve a wide swath of the state's Arctic refuge, setting up a likely battle with the Republican-led Congress over the oil-rich area.
Huffington Post: It's Time to Take Arctic Drilling Off the Table
Earlier this week, the U.S. Department of the Interior swung the door wide open to drilling in the remote waters of the iconic Arctic Ocean when it announced that it was reaffirming controversial Bush-era leases for the Chukchi Sea - a lease sale referred to as Lease Sale 193.
Fuel Fix: Feds says Shell’s spill containment system works as company seeks Arctic drilling approval
Shell has successfully deployed its Arctic containment system in waters near Washington State as it prepares for potential drilling in the Chukchi Sea later this year. The company didn’t officially need the test, which was conducted over several days in Puget Sound. Its emergency containment system, carried and deployed from the Arctic Challenger barge, already won certification from the American Bureau of Shipping and the U.S. Coast Guard, years ago.
Washington Examiner: Obama solar energy plan for veterans faces resistance
A new White House initiative to train veterans for jobs in the solar energy industry could turn into a rout if its key federal solar energy subsidy is phased out on schedule next year — a problem for the industry is that it's dependent on the subsidy for hiring. The plan may also face challenges as the administration's plan for heavy energy industry regulation is coming under fire from courts, Congress and state governments.
Forbes: Senators Try To Stop The Coming Oil Train Wreck
Spearheaded by the Senators from Washington State, legislation just introduced in the United States Senate will finally address the rash of crude oil train wrecks and explosions that have skyrocketed over the last two years in parallel with the steep rise in the amount of crude oil transported by rail.
Reuters: California used 70 million gallons of water in HF in 2014
The practice has been criticized in the state, which is suffering from a drought so severe that Gov. Jerry Brown announced the first-ever mandatory 25 percent statewide reduction in water use Wednesday. “Hydraulic fracturing uses a relatively small amount of water — the equivalent of 514 households annually,” said Steven Bohlen, the state oil and gas supervisor.
The News & Observer: HF bill would repeal forced pooling
One of the most contentious policies related to fracking would be repealed in a bill introduced Thursday that seeks to end a practice known as “forced pooling” or “compulsory pooling.” The bill would not require property owners to consent to shale gas exploration under their land, as is currently required under North Carolina’s rarely-invoked 1945 oil-and-gas statute.
The Augusta Chronicle: Questions in the pipeline
Developers of a 360-mile petroleum pipeline from South Carolina to Florida plan to slice through parts of the Augusta-Aiken area along the Savannah River. But instead of following already-established utility easements along the route, the company plans to use the force of government to take private property from hundreds of landowners in Georgia and South Carolina.
Pittsburgh Post-Gazette: Major Pennsylvania bat species ‘threatened’
Neal Kirby, a spokesman for the Independent Petroleum Association of America, said the industry submitted four rounds of comments against the listing of the bat, but hasn’t decided yet if it will file comments on the interim rules. He said the footprint of the oil and gas habitat on bat habitat is much less than that of forest management and other industries, and that the greatest threat to the bat is from the fungus, not human activities, like oil and gas development.
Pittsburgh Tribune: Companies explore deeper shale for greater yields of gas, liquids
Low natural gas prices that have companies balancing spending cuts with promises of ramped-up production are driving some new development in the Utica and Point Pleasant shale, where deeper wells can yield more gas and liquids.
WESA: Pipelines: The New Battleground Over Fracking
Forget the battles over the Keystone XL. Pipeline wars are now raging in Pennsylvania, where production is high and pipeline capacity is low. Marcellus Shale gas has the potential to alter the landscape of the global energy market. But right now a shortage of pipelines to get gas from the gas fields to consumers has energy companies eager to dig new trenches.
Summit County Voice: Widespread stream monitoring needed in HF zones
Gathering baseline water quality data from streams in fracking zones could help pinpoint impacts to drinking water, researchers at Penn State and the U.S. Geological Survey said after finding high levels of methane in a Pennsylvania stream.
State Impact: Are Marcellus drillers cheating the state? Agencies take a closer look
Gas drilling on state-owned land has sent hundreds of millions of dollars in royalties to Harrisburg. Private landowners have received millions more. But some companies have been accused of underpaying. Royalty disputes have led to several class action lawsuits and an ongoing investigation by the state attorney general’s office.
Citizen’s Voice: Program needed to determine drilling’s impact
Pennsylvania still has declined to launch a comprehensive program to determine the impact widespread natural gas drilling on public health, even though many health care professionals across the Marcellus Shale fields have asked for such information.
Reuters: Clock keeps ticking toward North Dakota oil tax break
The clock kept ticking in March on a potential $5.3 billion, two-year tax break for North Dakota's oil industry after a state-calculated average of the month's crude price fell below $52.59 per barrel. The state waives its 6.5 percent oil extraction tax if the monthly price of benchmark West Texas Intermediate (WTI) crude at the Cushing, Oklahoma, transport hub falls below an inflation-adjusted limit, set at $52.59 per barrel for 2015, for five consecutive months.
Grand Forks Herald: Lynn Helms: Setting the record straight about oil conditioning
As of April 1, oil producers in North Dakota are required to condition every barrel of Bakken crude oil to improve the safety of transporting the oil by rail. The North Dakota Industrial Commission unanimously approved the order in December, after months of science-based review and after holding a public hearing and providing for an extended public comment period.
Rapid City Journal: After two Montana breaks, scrutiny builds over federal pipeline regs
Two pipelines have dumped 70,000 gallons of crude into the nation’s longest free-flowing river in the last four years. What they have in common is that right up until breaking, both were considered safe. That “all clear” by regulators has sparked concern about whether the federal government is setting the bar too low for pipeline safety and ignoring destructive river conditions.
Casper Star Tribune: States have taken lead on HF
Colorado has completed multiple rounds of rule-making over more than a decade, with increasing intensity in recent years. Wyoming is in a race to the top with Colorado in claiming the mantle of the state with the most stringent regulations. North Dakota, Texas, and in fact all western states with sizeable oil and natural gas development had updated their rules well before the federal government jumped in. In fact, 99.97 percent of the permits to drill approved last year by the Interior Department were in states with recently updated fracking regulations, with just one well in a state currently updating its rules.
Houston Business Journal: Competing bills offer tax credits for waterless HF
Lawmakers rolled bills this week to encourage the conservation of water in the use of fracking, or hydraulic fracturing, to drill for oil and gas in shale rock formations.
Star-Telegram: Barnett rig count climbs but remains in single digits
The number of rigs searching for natural gas in the Barnett Shale remained in the single digits this week, with six derricks drilling wells in North Texas. Tarrant County led the way with two rigs, and Clay, Denton, Jack and Wise counties reported one each, according to RigData, a Fort Worth company that monitors oil and gas field activity.
Gainsville Daily Register: Oil, gas trends changing, official says
“Within the U.S. and worldwide, the oil and gas business has an amazing ability to innovate itself,” Palma said. “We always find new technologies, we find new geography’s that were previously considered off limits and not commercial and through the hard work of the scientists and of the people on the ground have been able to make it economically over time.”
Greeley Tribune: Colorado investors look favorably to both traditional and green energy
While 73 percent of Colorado high-net-worth investors support fracking of shale deposits to develop oil and gas resources, 86 percent of them agree that the U.S. should invest in programs to increase energy efficiency, according to Morgan Stanley’s Investor Pulse Poll.
Cleveland Business: Ohio and other states slammed by environmentalists
In terms of managing its waste, much of the oil and gas industry is exempt from federal oversight, in part because of perceived adequate regulation at the state level. But a new report from environmentalists opposed to fracking for shale gas and oil contends that Ohio and other Appalachian states are dropping the ball by failing to manage oil and gas waste or to regulate it as they would other hazardous waste.
State Journal: Federal official praises Huntington development plans
Huntington officials explained their goals for increasing economic activity in their city and the U.S. assistant secretary of commerce for economic development said he fully supports them.
NBC WBAL-TV: Senate advances HF moratorium bill
The Maryland Senate gave preliminary approval Friday to a two-year moratorium on fracking. The bill's supporters want more time to study the potential health and environmental impacts of fracking.


05 April 2015 8:23pm

ADN.  A storm shut down the Dalton Highway and stranded truckers for two nights on the only road to the Prudhoe Bay oil fields on Alaska's North Slope this week as crews battled water from a river flowing over the road.

For three weeks, crews have been trying to divert overflow from the Sagavanirktok River, commonly known as the Sag River, said Alaska Department of Transportation and Public Facilities spokesperson Meadow Bailey.

The Sag River runs parallel to the Dalton Highway as it approaches Prudhoe Bay. The water has been running over roughly 15 miles of the road, Bailey said, and at its peak was 3 feet deep in some places.


05 April 2015 8:08pm

April 2, 2015 JUNEAU—Governor Bill Walker today stated his support of two recent announcements on Arctic offshore oil and gas exploration.

On Tues., March 31, the U.S. Department of Interior issued a Record of Decision affirming Chukchi Sea OCS Oil and Gas Lease Sale 193 and the remaining oil and gas leases issued in 2008 as a result of the sale. 

“I’m pleased Interior Secretary Sally Jewell has taken a thoughtful and balanced approach to oil and gas leasing,” Governor Walker said. “This is an important step toward responsible Arctic exploration.”

Governor Walker also said he is encouraged by the National Petroleum Council’s report to the U.S. Secretary of Energy. The 500-page report contains a series of recommendations that reflect the Walker-Mallott administration’s goals for sustainable and responsible development of the outer-continental shelf and greater Alaskan engagement.

“As the United States assumes chairmanship of the Arctic Council this month, I’m pleased to see NPC recommends more investment in and coordination of offshore Arctic oil and gas research,” Governor Walker said. “The U.S. is an Arctic nation because of Alaska. This detailed and non-advocacy report underscores the importance of Alaska’s oil and gas resources to the nation.”

Department of Natural Resources Commissioner Mark Myers and Senator Bert Stedman are the only two Alaskan members of the NPC, an oil and natural gas advisory committee to the U.S. Secretary of Energy.

(National Petroleum Council report: http://www.npcarcticpotentialreport.org/)

4-3-15 Gas Line Collision

03 April 2015 8:09am

AJOC by Tim Bradner  With about two weeks left on the clock, the 2015 session of the Legislature seems set to end with a big bang. A collision is shaping up between legislators and Gov. Bill Walker (NGP Photo) over the governor’s vision of a large state-led gas pipeline.

Notes from the road: We have little time to write while traveling (Today in L.A. on the way to Anchorage).  We do note that as the Alaska legislative session comes to an end our greatest concerns are:

  • Administration interference with Ak-LNG project by even talking about government involvement in a competing project; and
  • Administration support for a poorly thought out, government sponsored Interior Energy Project; and
  • Administration not using bully pulpit to support adequate spending cuts (i.e. the State Chamber calls them 'cosmetic') to create a sustainable government going forward...along with legislative proclivity to not cut spending due to last day 'trading' of special interest projects; and
  • Legislative initiative to create requirements for Regulatory Commission of Alaska to approve expensive, non-economically feasible alternative energy projects, subsidized by utility ratepayers (HB 78); and
  • In wake of low oil prices, lack of will to cut government spending, hostility of governor toward industry/legislature/Ak-LNG project, we anticipate the Governor working with certain constituencies to increase oil taxes within the next year or two.  Hoping this to be incorrect but fearing it isn't, we could foresee an "economic death spiral" wherein lack of spending discipline begets higher oil taxes, which begets lower oil industry capital spending, begetting lower production, which begets even lower state revenue, resulting in higher oil taxes, and so forth.  
  • Faced with such challenges, we believe Alaska's bright future can only unfold with leaders possessing wisdom, a spiritual connection with our creator and a commitment to become honest, effective communicators.



4-2-15 On The Road

02 April 2015 1:19pm

Governor Bill Walker today stated his support of two recent announcements on Arctic offshore oil and gas exploration.

On Tues., March 31, the U.S. Department of Interior issued a Record of Decisionaffirming Chukchi Sea OCS Oil and Gas Lease Sale 193 and the remaining oil and gas leases issued in 2008 as a result of the sale. 

“I’m pleased Interior Secretary Sally Jewell has taken a thoughtful and balanced approach to oil and gas leasing,” Governor Walker said. “This is an important step toward responsible Arctic exploration.”

Governor Walker also said he is encouraged by the National Petroleum Council’s report to the U.S. Secretary of Energy. The 500-page report contains a series of recommendations that reflect the Walker-Mallott administration’s goals for sustainable and responsible development of the outer-continental shelf and greater Alaskan engagement.

“As the United States assumes chairmanship of the Arctic Council this month, I’m pleased to see NPC recommends more investment in and coordination of offshore Arctic oil and gas research,” Governor Walker said. “The U.S. is an Arctic nation because of Alaska. This detailed and non-advocacy report underscores the importance of Alaska’s oil and gas resources to the nation.”

Department of Natural Resources Commissioner Mark Myers and Senator Bert Stedman are the only two Alaskan members of the NPC, an oil and natural gas advisory committee to the U.S. Secretary of Energy.

(National Petroleum Council report: http://www.npcarcticpotentialreport.org/)

Syndicate content