Headlamp – BP’s economic impact on Alaska – HUGE! Russia dumps dollar for euros?

Alaskans overflow Anchorage hearing on salmon habitat ballot measure  Kortnie Horazdovsky & Derek Minemyer, KTUU, September 18, 2018

So many people showed up to a hearing on Ballot Measure 1, which would change laws protecting salmon habitat in Alaska, that attendees spilled out of the auditorium and into the hallway at the Anchorage Legislative Information Office Tuesday.  Dozens of Alaskans signed up to testify at the hearing — with most in attendance opposing the measure, which will be on Alaska’s general election ballot November 6.

Our Take:   While the supporters of the initiative claim that people were paid to be there, an Alaskan who took time off of work to testify in opposition noted that with  almost 200 people there – the lost wages/revenue/productivity for  people and businesses who stopped working in order to testify was easily  $15,000.   We wouldn’t call that getting paid to be there…

BP outlines economic impact to Alaska
Joe Vigil, KTVA, September 18, 2018

BP just released its sixth annual U.S. Economic Impact Report.  BP began working in Alaska in 1959 and currently operates the entire Prudhoe Bay Field. The report says that the field produced an average of more than 280,000 barrels of oil per day in 2017 — half of the state’s total oil production according to the report.  Here is a look at BP’s economic impact to Alaska by the numbers. The company supports more than 8,300 jobs across the state. In 2017, it says it spent more than $855 million with vendors and paid $543 million in taxes, royalties and other government payments. The company also donated more than $6.5 million to community groups, youth teams and student scholarships.

Our Take:   Like a good neighbor….AKHEADLAMP greatly appreciates the jobs for Alaskans, the money spent with Alaskan companies and the taxes paid to the state.  The icing on the cake is the money donated throughout the community. 

US defense investments in Greenland infrastructure would keep NATO in, China out and Russia at bay
Kevin McGwin, Arctic Today, September 19, 2018

Politically, Greenland has cast its lot with the West. But, when it comes to commercial opportunities, it is more open. China, especially, has been the object of an intense lobbying effort, to the point where Nuuk is mulling opening a de facto embassy in Beijing. For the most part, the two approaches coexist. Greenland, for example, is a member of the Nordic Council and co-operates closely with the EU. Once it becomes independent, it intends to seek NATO membership. At the same time, Chinese money props up three Greenlandic mining projects. Meanwhile, in 2016, Huawei, a Chinese telecom alleged to have close ties to Beijing, was selected to install a high-speed subsea internet cable. A handful Chinese nationals staff fish processing plants. China, of course, has commercial interests just about everywhere. And many jurisdictions would like to land more Chinese investment. Rarely is this a problem, but there are limits.

U.S. LNG exports to China decline as trade war escalates
Scott DiSavino, Reuters, September 18, 2018

As the trade war between Beijing and Washington escalates, fewer vessels carrying U.S. liquefied natural gas (LNG) have been going to China.  China, which purchased about 15 percent of all U.S. LNG shipped in 2017, has taken delivery from just four vessels since June versus 17 during the first five months of the year.

Exclusive: Russian oil firm seeks dollar alternative amid U.S. sanctions threat – traders
Gleb Gorodyankin, Olga Yagova, Reuters, September 19, 2018

Russian oil producer Surgutneftegaz (SNGS.MM) is pushing buyers to agree to pay for oil in euros instead of dollars if the need arises, apparently as insurance against possible tougher U.S. sanctions, traders who deal with the firm told Reuters. Russia has been subject to Western sanctions since its 2014 annexation of Ukraine’s Crimea region, but Washington has threatened to impose extra sanctions, citing what it has called Moscow’s “malign” activities abroad. The prospect that causes most alarm for Russian firms is inclusion on a Treasury Department blacklist that effectively cuts them off from conducting transactions in dollars, the lifeblood of the global oil industry.