ConocoPhillips Celebrates; BP says “bye bye” to low oil prices.

ConocoPhillips heralds first oil at Alaska petroleum reserve
Associated Press, October 9, 2018

ConocoPhillips Alaska has reached a milestone at the first drill site on federal leases within the National Petroleum Reserve-Alaska. The company announced Tuesday that it has produced its oil at the Greater Mooses Tooth No. 1 drill site. Production began Friday. The site is a satellite of the Alpine Field. Oil will be processed through existing facilities at Alpine. Construction at the site began in 2017 and at its peak over two winters created 700 jobs, according to ConocoPhillips Alaska.

Our Take:   Great news for Alaska:   more jobs, more oil, more revenue. Thank you, ConocoPhillips!

BP Says Bye to Low Prices as It Plans Projects for Oil Over $60
Kelly GIlblom, Annmarie Hordern, Javier Blas, Bloomberg, October 10, 2018

BP Plc boss Bob Dudley, among the first to say oil will stay lower for longer, is becoming more confident. In a sign of the improving times, the British oil major is now planning its investments at $60-$65 a barrel oil, raising it from $50-$55 last year, Dudley said Wednesday at the Oil & Money conference in London. While he doesn’t expect sustained prices of $85, it’s unlikely to plummet again.

Natural gas here to stay beyond energy transition, Big Oil says
Ron Bousso and Shadia Nasralla, Reuters, October 9, 2018

Energy companies are betting demand for natural gas will rise at break-neck pace for decades, undermining warnings that tackling climate change would require a rapid switch to renewable energy. Top oil companies including Royal Dutch Shell, BP and Total are adapting with growing urgency to the need to develop cleaner energy sources, investing more and more in solar and wind power, electric vehicle technology and even forestation. Still, they see oil, and especially natural gas, the least polluting fossil fuel, playing a major role throughout the decades of transition and beyond as demand for electricity and plastics grows.

The Donlin gold mine needs to move a mountain. How close is it to making that happen?
Krysti Shallenberger, Alaska’s Energy Desk, October 9, 2018

One of the biggest gold mines in the world could be built along the Kuskokwim River, north of Bethel. The Donlin mine has so far escaped the intense level of public scrutiny aimed at the proposed Pebble Mine in Bristol Bay, but it’s much farther along the permitting process. Supporters say the mine would bring much needed jobs to the region while opponents worry it threatens their subsistence way of life.

Our Take: $500 million invested over 23 years exemplifies the rigorous review process that companies face if they want to develop Alaska’s resources.

Norway confirms Chevron exit
Ole Ketil Helgesen, Upstream, October 9, 2018

Norwegian authorities have accepted Chevron’s decision to sell its only asset in the country and to exit the Norwegian continental shelf. Chevron has sold its 20% stake in the highly-touted Korpfjell license to Norwegian player DNO, leaving the US supermajor with no assets in Norway. A Chevron spokesman did not want to comment on the company’s future in the country but confirmed that it had sold its only license in Norway.

UN Report Suggests USD $240 Per Gallon Gasoline Tax to Fight Global Warming
Tom Kirkman, OilPrice.Com, October 9, 2018

A United Nations special climate report suggests a tax on carbon dioxide emissions would need to be as high as $27,000 per ton at the end of the century to effectively limit global warming.   For Americans, that’s the same as a $240 per gallon tax on gasoline in the year 2100, should such a recommendation be adopted. In 2030, the report says a carbon tax would need to be as high as $5,500 — that’s equivalent to a $49 per gallon gas tax.

Our Take: See the story below. Innovation, not “reports and symbolic agreements” will result in lower emissions – worldwide. $240 per gallon tax on gasoline? Face. Palm.

From the Washington Examiner’s Daily on Energy:

ENERGY DEPARTMENT SAYS, ‘ALL OF THE ABOVE’ STRATEGY KEY TO GLOBAL CLIMATE GOALS: The Energy Department on Tuesday replied to Josh’s round of inquiries to Trump administration agencies about how to best respond to the UN climate report by reasserting its commitment to an “all-of-the-above” energy strategy.

Agencies that responded Monday, such as the EPA and State Department, bragged about how market forces have helped the U.S. become a world leader in reducing greenhouse gas emissions, mostly as a result of natural gas replacing coal as the dominant energy source. None endorsed the findings of the report, which said these market changes are not sufficient, and called for dramatic government action across the world.

Carbon capture research, LNG exports are key: The Energy Department provided a similar outlook but filled in some details.

“The United States has led the world in lowering emissions through innovation,” said Shaylyn Hynes, an Energy Department spokeswoman. “While others have been focused on reports and symbolic agreements, the Trump Administration has been focused on all of the above energy policies that produce positive results for the environment.”

She said the Energy Department is contributing to solutions by developing “clean coal” — aka carbon capture and storage — and renewable technologies at National Labs, and exporting liquified natural gas.

“Secretary Perry and DOE have worked with our allies around the globe to share American technology so that other fossil fuel producing nations can lower their own emissions, impacting climate change beyond our own borders,” Hynes said.