From the weekly One Alaska Update – Governor Walker’s Budget:
“One of the things we’re working on is a sustainable and strategic budget for the next Governor to work from. It will continue to make Alaska safer by funding troopers, courts, VPSOs, 911 capability, and opioid crisis response programs under the Public Safety Action Plan. It will include a healthy capital budget to drive Alaska’s economy, as well as investment in our tourism and seafood sectors, and the AKLNG project. It will forward fund education, to make sure districts have the resources they need to ensure each of Alaska’s children has a stable, bright, and safe future in our state. The budget should be finalized and made public by the end of the month.
Our Take: Governor-elect Dunleavy will inherit this budget. With former Governor Sean Parnell leading the transition on Alaska LNG – expect a serious review of any proposed funds for Alaska LNG.
OPEC and partners ‘will do what it takes’ to keep oil market balanced: Saudi energy minister Falih
S & P Global Platts, November 12, 2018
OPEC and its 10 non-OPEC partners would need to cut 1 million b/d from October oil production levels to avoid a supply glut in early 2019, according to the group’s analysis, Saudi energy minister Khalid al-Falih said Monday. But because market conditions could change by the time the coalition meets December 6-7 in Vienna, a key monitoring committee that met Sunday did not recommend specific cuts, he said. “We are going to be flexible,” Falih said at the ADIPEC conference in Abu Dhabi, a day after co-chairing the OPEC/non-OPEC monitoring committee meeting. “There are a lot of assumptions that may change in two to three weeks time.” But, he added, OPEC and its partners “will do what it takes” to keep the market balanced, with Saudi Arabia leading the way but cutting its crude exports by about 500,000 b/d in December.
Canada’s biggest railroad says it is attracting interest from oil producers in its effort to move crude in solid, puck-like form, as clogged pipelines divert more oil to riskier rail transport. Congested pipelines have stranded much of Canada’s crude in Alberta, driving discounts to record-high levels. Canadian heavy crude traded on Friday for less than one-third of the U.S. benchmark light oil price. The latest blow to the sector landed on Thursday, when a U.S. court ruled construction must stop on TransCanada Corp’s (TRP.TO) Keystone XL pipeline.
Our Take: Necessity is the mother of invention.
From the Washington Examiner Daily on Energy:
TRUMP LEVERAGES U.S. ENERGY FOR BIG GAINS ON THE GLOBAL STAGE: The tip of the spear when it comes to Trump’s diplomacy is not the tongue of the diplomat, but the power of the pipeline.
The United States is now the world’s No. 1 producer of oil and natural gas, eating away at Washington’s past dependence on foreign producers and oil cartels — that is, petrostates like Iran and Russia and autocracies around the world.
Trump calls it “energy dominance,” and the freedom it provides has undergirded many of the president’s decisions, from moving the U.S. embassy to Jerusalem to re-imposing sanctions on Iran, according to administration sources.
“It allows us to impose these sanctions and not upset the world oil market very much,” said Deputy Energy Secretary Dan Brouillette. “It’s a fundamentally different posture to be in, in regard to our foreign policy. … It just gives us leverage.”
In negotiations with European, Chinese, and other world leaders, the president has made energy a central theme. Earlier this year, Trump even taunted NATO members at a summit in Brussels, calling them “captives” to Russian energy.
Above all, the comment was aimed at Germany, which is working with the Russian state-run energy firm Gazprom to build the Nord Stream 2 pipeline.
Cramer: ‘We are at war against the Chinese,’ and it’s not just over trade
Matthew J. Belvedere, CNBC, November 12, 2018
CNBC’s Jim Cramer said on Monday he does not expect a trade deal between the United States and China any time soon. “I think we are at war against the Chinese, and it’s not over. And the war is not just trade,” Cramer said on “Squawk on the Street,” taking cues from the hardline speech that White House trade advisor Peter Navarro delivered last week. Navarro, a longtime China critic, said Friday any agreement between Washington and Beijing to end their trade dispute, which resulted in back-and-forth tariffs, will be on “President Donald J. Trump’s terms, not Wall Street terms.” Cramer said the tone of Navarro’s speech on economics reminded him of the kind of rhetoric that then-President Ronald Reagan used decades ago during the Cold War with Russia over nuclear arms. “That’s a speech that Reagan gave against the Soviet Union. And that didn’t end well for the Soviet Union,” said Cramer, the host of “Mad Money.” “The G-20 is going to be so important.”