Headlamp – “Eighty percent of a pipeline doesn’t do us any good. It’s like building half a bridge.”

Alaska’s 2018 Primary election:

The deadline has come and gone. Here is the detail of who is running.


PIPELINE CEO SAYS STEEL TARIFFS UNJUST

Greg Armstrong, the CEO of Plains All American Pipeline, said Monday morning that Trump’s steel tariffs are “unjust,” and warned that higher costs could stall projects. “Steel tariffs in our view are unjust,” Armstrong said at the Energy Information Administration’s annual energy conference.

No domestic source: The type of steel used in pipelines is a niche market, and most domestic steel producers have left the pipeline market because of its high cost. Armstrong said Trump’s 25 percent tariff could drive up the cost for U.S. oil and natural pipelines because pipeline makers rely on steel from overseas that will be more expensive to import.

“We don’t think we should pay steel tariffs for something we can’t buy in the U.S.” Armstrong said.

Nervous over quotas: But Armstrong, who is chairman of the National Petroleum Council, said pipeline producers can “tolerate” the tariffs. He’s more worried about the possibility of import quotas of steel.

The Trump administration announced last week it is imposing steel tariffs on the European Union, Mexico and Canada, after previously giving those allies an exemption. The administration has said it could ease up on tariffs if countries agree to quotas, restricting how much steel they export to the U.S. The Trump administration has already reached deals with South Korea, Brazil, Australia and Argentina, which agreed to limit their steel shipments. “We can tolerate the tariffs, but the quotas are a problem,” Armstrong said. “Eighty percent of a pipeline doesn’t do us any good. It’s like building half a bridge.”

Big Oil teeters between enemy and ally in climate fight
Axios, Amy Harder, June 4, 2018

The new flashpoint in the climate change debate is over the role of oil companies — whether they’re culprits, allies, or something of a frenemy. Why it matters: The burning of fossil fuels these companies produce is a big reason Earth’s temperature is rising, yet their products are also foundations of the global economy. Whether you love or hate them, what role these companies play is inherent to addressing climate change, particularly in the absence of presidential leadership on the issue.

Our Take: It’s good to see someone who considers fossil fuels an enemy acknowledging their role in the global economy. Comments are due today on the draft action plan prepared by Governor Walker’s climate action leadership team. Click here for more information and to provide comments.

Schlumberger in OneLNG exit
Upstream, June 4, 2018

Schlumberger has decided to pull the plug on its OneLNG joint venture with Golar LNG due to the failure of efforts to find funding for the proposed Fortuna liquefied natural gas project off Equatorial Guinea. Golar confirmed in its first-quarter results statement that “it has not been possible to finalize an attractive debt financing package” after concerted efforts by the partnership together with project operator Ophir Energy.

Rising oil prices bring hope to gloomy Canada sector
Reuters, Rod Nickel and Julie Gordon, May 31, 2018

Years of low oil prices and high costs spurred a stampede by multinational majors out of Canada’s oil sands last year, leaving the remaining crude producers struggling to weather painful drops in profit. Environmentalists derided the “tar sands” as too dirty for investment, and analysts said the region’s high production costs made little sense in a world of $50-a-barrel oil. But this month, global benchmark prices rebounded to $80 per barrel, cheering oil executives in the Canadian energy capital of Calgary, Alberta, who are shifting from survival mode to cautious expansion to capitalize on healthier cash flow expected this year.

Our Take: Even “cautious expansion” produces jobs and boosts the economy.

Former Alaska senator jumps into governor race
The Hill, Max Greenwood, June 2, 2018

Former Sen. Mark Begich (D-Alaska) is throwing his name into the race for the Alaska governor’s mansion. Begich, who served in the Senate from 2009 until 2015, made his plans official on Friday just before the candidate filing deadline. The announcement throws up an obstacle to Gov. Bill Walker, an independent, who is seeking reelection this year.

Our Take: The governor’s race is critical to the future of responsible resource development in our state. It’s important to know who will help the oil, gas and mining industries and who will hurt them. Governor Walker and Senator Begich have both clearly stated their opposition to the Pebble Mine, prior to the project going through the permitting process. #nothelping