Alaska gas line agency chooses route for Kenai Spur Highway around proposed LNG plant
Elwood Brehmer, Alaska Journal of Commerce, September 20, 2018
State gas line officials have picked their plan to route a highway around the site for the massive LNG plant they hope to construct, but now they need to pay for it. In June, Alaska Gasline Development Corp. leaders selected the shortest and least expensive route to bend the Kenai Spur Highway around the roughly 800-acre LNG plant site in Nikiski. They are currently working to determine what it will cost to secure the right-of-way for the 3.4 miles of new road before further work can begin, said Frank Richards, AGDC vice president and Alaska LNG Project manager.
Our Take: AGDC shouldn’t pay for anything associated with a road until they know the outcome of Ballot Measure One. The Department of Transportation has stated that if passed, increased cost in project delivery and delay in project delivery will be very real threats to pending projects.
Now near 100 million bpd, when will oil demand peak?
Amanda Cooper, Christopher Johnson, Reuters, September 20, 2018
Sometime in the next few weeks, global oil consumption will reach 100 million barrels per day (bpd) – more than twice what it was 50 years ago – and it shows no immediate sign of falling. There is no consensus on when world oil demand will peak but it is clear much depends on how governments respond to global warming. That’s the view of the International Energy Agency (IEA), which advises Western economies on energy policy.
From the Washington Examiner Daily on Energy:
ENERGY DEPARTMENT WARNS THAT OIL DRILLERS ARE LEAVING TEXAS AMID PIPELINE WOES: The Energy Department says a lack of pipelines is beginning to drive oil companies out of the big shale region known as the Permian Basin, as they focus investment in regions where the oil is easier to get to market.
A lack of pipelines: The Energy Information Administration released its latest weekly oil analysis on Wednesday, focused on the lack of pipeline “takeaway capacity,” which translates to there being plenty of oil, but not enough ways to move it to refiners or export terminals.
The implication: The report highlights the case for more spending on pipes and for easing or expediting permitting decisions
Our Take: Oil is here to stay. We need more pipelines. Easing and expediting permitting is a no-brainer.
Shell Opens German LNG Filling Station
Natural Gas News, September 20, 2018
Shell said September 18 it has inaugurated its first public LNG filling station for trucks in Germany. It is near motorway junctions to the south of Hamburg, making it an important tanker spot for goods traffic in, from and to the Port of Hamburg. With storage capacity of almost 30 metric tons of LNG, the station will enable more than 200 trucks to be refueled every day from October onwards. Shell said Hamburg is its ninth such LNG filling station for trucks in northwest Europe, with seven open in the Netherlands and one in Belgium; four more are planned in Germany in the next 18 months. Already around 5000 LNG-fuelled trucks are driving on Europe’s roads, mostly manufactured by Italy’s Iveco and Swedish brands Scania and Volvo, noted Shell. LNG is already fairly common as a fuel for trucks across Scandinavia, Spain and the UK, and becoming so in Germany where rival Uniper has at least one such filling station in Berlin.
US oil giants ExxonMobil and Chevron finally join a global climate initiative—as an Indian titan exits
Akshat Rathis, Quartz, September 21, 2018
The oil industry has a history of actively sowing doubts about climate science. So it was a big deal when, in 2014, a group of 10 oil companies agreed to collaborate on climate action by creating the Oil and Gas Climate Initiative (OGCI). The founding members spanned the globe, with companies based in Italy, the UK, Spain, China, India, Mexico, France, Netherlands, Norway, and Saudi Arabia. But the US was conspicuously missing. Four years later, US oil giants finally look ready to take a seat at the table. ExxonMobil, Chevron, and Occidental Petroleum are set to join OGCI as soon as Monday, according to Axios. Together, the companies that make up the OGCI are responsible for supplying 30% of all oil and gas, which is about 20% of all the world’s energy. It’s a shame, then, that even as US oil giants join the initiative, India’s Reliance Petroleum (which is now part of Reliance Industries) has quit the coalition. Reliance supplies a small fraction of the world’s oil (about 1.2 million barrels per day in capacity, which is about 1% of global oil production). But its exit means the OGCI no longer has an Indian company among its ranks.
Our Take: The owner of Reliance Petroleum is still participating in other climate initiatives. There is more than one way to address the issue. President Trump exiting the Paris Agreement didn’t mean the US abandoning climate initiatives – despite what the ENGO’s and the media like to say.
Kawasaki, Kelly get heated in Senate debate
Erin McGroarty, Fairbanks Daily News Miner, September 21, 2018
Rep. Scott Kawasaki, D-Fairbanks, and Sen. Pete Kelly, R-Fairbanks, met to discuss state issues in an at-times heated debate Wednesday evening. Both men are running for Senate Seat A. This will be Kawasaki’s first attempt at a Senate seat. Kelly is the incumbent for the Fairbanks area Senate seat. The two differ on many, if not most, state issues and made that known while discussing Alaska’s political path forward.
Our Take: Kelly wants a spending cap. Kawasaki wants to tax businesses. Kelly is proud of all the legislation he has passed. Kawasaki is proud of sending birthday cards (with the state paying the postage.) In the quest for securing Alaska’s future – Kelly 2, Kawasaki 0.