Morning Headlamp — ADN poll doesn’t bode well for AKLEG

The Fairbanks Daily News Miner ran an editorial arguing that the Nenana basin may be the best bet to deliver gas to residents cheaply and quickly for the Interior Energy Project. According to the piece, “Should commercial gas be found in the Nenana basin, it would help tremendously with one of the project’s biggest obstacles: low-cost transportation. Being far nearer at hand than gas from either Cook Inlet or the North Slope, costs to deliver the gas to Fairbanks would be less, giving the project a better chance at coming in at or below its price target of $15 per thousand cubic feet — the equivalent of heating oil at $2 per gallon.”  Headlamp would note that the state’s oil and gas tax credits had helped with this project – prior to the passage of HB 247. 

Not making the grade. According to a recent Alaska Dispatch News poll, roughly half the 670 respondents handed out grades of D’s and F’s to the state’s Democratic and Republican lawmakers, with Gov. Bill Walker, an independent, earning just a C average. Fifty-five percent of respondents disagreed with Walker’s proposal to restructure the Permanent Fund to help balance the budget, while 45 percent said the state’s tax structure asks too little from oil companies. Headlamp would have to give that 45% an F on their understanding of the current tax structure and the instability created by constantly changing the tax system. 

Edison Chouest Offshore will be adding new vessels to its fleet when it takes over the oil tanker escort and spill response duties out of Valdez in July 2018. Louisiana-based Edison Chouest announced in early June that it was selected by Alyeska to provide tanker escort and spill response services in Prince William Sound. The company will take over for Crowley Marine Services after a detailed two-year transition process. Linda Leary, president of Edison Chouest Alaska subsidiary Fairweather LLC, wrote in response to questions from the Journal that the maritime services provider parent company plans to take advantage of its in-house shipbuilding capabilities to execute its 10-year ship escort-response vessel system, or SERVS, contract with Alyeska  Pipeline Service Co.

Furie Senior Vice President Bruce Webb said in an interview the company plans to re-enter the KLU-4 well roughly six miles north of the Julius R platform the company installed last year above its natural gas producing wells. “We know there’s gas there for sure; we’ve drilled through some gas and we see the gas on the seismic and on the seismic it appears to be a pretty large oil reservoir, but again, you don’t know for sure until you drill into it,” he said. “It could be really good sandstone with water.” The company once intended to drill farther, into the Jurassic formation, but expiration of the state tax credit for drilling with a jack-up rig in July caused Furie to back off on the extra drilling, Webb added.

 

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First Reads

A new hope for Interior gas: Nenana drilling could help achieve energy project goals
Alaska Dispatch News, Nathaniel Herz, July 7, 2016

New ADN poll: Alaska lawmakers get D’s, F’s, while governor’s Permanent Fund proposal faces opposition
Alaska Dispatch News, Nathaniel Herz, July 7, 2016

Edison Chouest to build new vessels to take over SERVS contract
Alaska Journal of Commerce, Elwood Brehmer, July 6, 2016

Dispute continues over gas marketing
Alaska Journal of Commerce, Elwood Brehmer, July 6, 2016

Furie takes first steps toward adding Inlet oil platform
Homer News, Elwood Brehmer, July 6, 2016