Essential Steps in Obtaining a Healthy Oil and Gas Industry

The disparity between what is being said by the Walker Administration and what is being done by the Walker Administration was noted this morning by Representative Dan Saddler at the Resource Development Council (RDC) breakfast.

John Hendrix, Chief Oil and Gas Advisor to Governor Walker, was the guest speaker discussing what the future could be for oil and gas in Alaska.

Some key points from his presentation:

  • Exploration is needed to obtain wealth
  • Being competitive requires:
    • Pro-industry government and residents
    • Predictable, consistent and stable environment
    • Financial Resources
    • Ready skilled workforce
    • Long term development planning
  • Monetizing our Assets means:
    • Maximizing ultimate recovery in our fields
    • Managing Alaska’s reserve replacement ratio
    • Encouraging new technology
    • Minimizing the time from exploration to production
    • Ensuring assets are not stranded
  • North Slope gas is our largest stranded asset – we need to be in the game to fill the future (global) void
  • Sharing of infrastructure is smart

During Q & A, Saddler noted that oil and gas tax credit vetoes, the rejection of the Prudhoe Bay plan of development and the recent legal actions taken by the AG contradicted Hendrix’s description of a healthy environment for the industry.

To view the presentation in its entirety –go to www.akrdc.org.