Mining breathes new life; Alaska’s importance in oil; Paris nonviable

Alaska’s mining industry breathes new life into our communities
Chuck Kopp, Anchorage Daily News, September 7, 2019

Alaska’s mining industry employs Alaskans, whose concerns and burdens for the environment and a better life are the same as our own. Our mining industry routinely works with their neighbors to help alleviate suffering and improve the lives of their region.

I think it is fair to say most Alaskans want a well-regulated mining industry to flourish in our state, and desire to encourage more of this type of investment. But it will be necessary to stop the polarization and divisiveness that comes from caustic rhetoric, inaccurate information, and a false dichotomy that says its either mining jobs and infrastructure or protection of the environment. Our modern-day mines in Alaska have repeatedly shown that both needs can be well accommodated. The future of our state depends on the effort of multiple industries and entrepreneurs working together to move us forward into a more secure future.

Our take: While we appreciate the sentiments expressed, actions speak louder than words. And when “pro-resource development” Republicans voted Brice Edgemon in as speaker and Geran Tarr as cochair of Resources, they killed every opportunity we had to pass legislation that would enhance opportunities for mining. Here’s looking at you SB 51…

 

Why Alaska’s Arctic is so important to a Papua New Guinea oil company
Sonali Paul, Arctic Today, September 9, 2019

In Alaska, Oil Search has spent $850 million buying a 51 percent stake in the Pikka prospect on the assumption it holds 500 million barrels of recoverable oil.
With Spain’s Repsol, it aims to produce 30,000 barrels a day of oil by as early as 2022 to start generating cash, then ramp up to 120,000 bpd in 2024.

Beefing up its small staff in Alaska, the company has hired a Trump administration official — Joe Balash, who oversaw oil and gas drilling on U.S. federal lands — as its external affairs head.
It is hoping to prove up reserves closer to 750 million barrels over the next six months, find more oil around its Nanushuk field and sell part of its stake to help fund the project.

Our take: While we are hopeful for Oil Search to start producing, we know the hurdles that come with the job. ‘“Alaska as a region is quite prone to delays,” said Wood Mackenzie analyst Rowena Gunn. “It’s very, very high cost, it’s a remote, tough environment to work in, and there’s a lot of environmental regulations.”’ She said it first.

 

Canada LNG among big oil projects deemed economically unviable under Paris climate pact by study
Ron Bousso, Financial Post, September 5, 2019

Major oil companies have approved US$50 billion of projects since last year that will not be economically viable if governments implement the Paris Agreement on climate change, think-tank Carbon Tracker said in a report published on Friday.
The analysis found that investment plans by Royal Dutch Shell, BP and ExxonMobil among other companies will not be compatible with the 2015 Paris Agreement, which aims to limit global warming to 1.5 degrees Celsius.

Previous reports on the implications of climate change for oil and gas companies by Carbon Tracker and other researchers have contributed to a wave of investor pressure on majors to show that their investments are aligned with the Paris goals.
While some companies including Shell, BP, Total and Equinor have increased spending on renewable energy and introduced carbon reduction targets, the sector says it needs to continue investing in new projects to meet future demand for oil and gas as Asian economies expand.