Pentex purchase prompts IGU board member to resign
Robin Wood, Fairbanks Daily News Miner, August 8, 2018
Claims of unfair business practices from a state entity, incomplete information, crippling debt and unrealistic growth projections were among a long list of grievances cited in the resignation letter of Interior Gas Utility board member Frank Abegg. In the five factors Abegg expands upon, he claims Pentex was too expensive, a consistent supply of liquefied natural gas is at high risk, gas rates are too high, growth projections are too optimistic and that AIDEA dealt unfairly with IGU.
Our Take: Abegg’s claim that Golden Valley Electric serves 35,000 customers for about $20,000 per customer compared to IGU’s $70,000 per customer for the 1100 existing customers is startling. His grievances should not go unanswered. AIDEA would do well to be specific in a response to Abegg’s claims. The Fairbanks community and the state of Alaska can’t afford another boondoggle.
ConocoPhillips’ Willow prospect advances with review effort by federal government
Alex DeMarban, Anchorage Daily News, August 7, 2018
The federal government announced Tuesday that it will launch the regulatory process and start taking public comments for a major oil discovery on Alaska’s North Slope, in a statement that drew swift criticism from conservation groups. The Bureau of Land Management said it will begin taking steps to conduct an environmental review of ConocoPhillips’ Willow prospect in the National Petroleum Reserve-Alaska, according to a notice in the Federal Register.
U.S. crude exports to India surge as China intake fades
Clyde Russell, Reuters, August 7, 2018
U.S. crude oil producers appear to have found an alternative buyer for cargoes no longer heading to China, with India on track to import record volumes in August. India has booked a total of 9.94 million barrels of crude, about 319,000 barrels per day (bpd), to arrive from the United States this month, according to vessel-tracking and port data compiled by Thomson Reuters Oil Research and Forecasts. This would be almost triple the 119,000 bpd India imported from the United States in July, and well above the 190,000 bpd for November last year, the previous record for a month.
Saudi-Canada Fight Shows Need for More Pipelines, Oil Group Says
Kevin Orland, Bloomberg, August 8, 2018
The escalating trade battle between Canada and Saudi Arabia highlights the need for more pipelines to move oil and natural gas around the northern nation to improve its energy security, according to the Canadian oil industry’s largest trade group. Canada’s energy producers could supply a greater portion of their domestic market and satisfy more of world demand if they could move supply from producing regions to both coasts, said Ben Brunnen, vice president of oil sands operations and fiscal policy for the Canadian Association of Petroleum Producers. Canada imported 71,300 barrels of crude a day from Saudi Arabia as of 2014, accounting for about 11 percent of the country’s imports, according to Natural Resources Canada.
Donlin Gold Helps Green Star Remove Thousands of Pounds of Hazardous Waste
Alaska Business Monthly, August 8, 2018
Donlin Gold teamed up with Green Star this summer to collect almost 30,000 pounds of hazardous material and special wastes from five villages that were safely transported back to Anchorage for recycling or disposal. The pilot program is designed to remove the most hazardous legacy material from local landfills to improve human health and the environment.
Our Take: Like a good neighbor…
From the Washington Examiner, Daily on Energy:
FINAL ACTION ON REPEALING OBAMA-ERA METHANE RULE COMING SOON: The Trump administration will soon finalize its repeal of the Obama administration’s “venting and flaring” rule to manage emissions from fracking, Joe Balash (DOI’s lands and mining chief) said.
‘Final stages’: He told the Heartland Institute that the agency is in the “final stages” of working with the White House Office of Management and Budget to prepare the final rule on updating and revising the venting and flaring regulations in the coming weeks.
Obama’s ‘cloak’ and ‘cover’ rule: The rule “upset decades of precedent on how we count waste” from the oil and natural gas sector, he said. It was a “cloak, just a cover, to use federal land management and royalty policy to regulate emissions.”
He said the U.S. is missing out on billions of dollars in revenue by restricting energy development on public lands.
“If production on federal lands had grown at the same rate as overall U.S. production from 2009 to 2015, total royalties would have been 31 percent higher,” he said. “We would have had an additional 20 billion dollars in the Treasury. And that would have helped across the board.”
SEVENTY NEW COAL MINES, SEVEN NEW COAL LEASES: “From Jan 2017 to March 2018, we’ve issued seven new coal leases by application, we’ve approved 70 new coal mine plans and these approvals positively impact 1,900 employees with those associated mines,” Balash told the Heartland Institute.