The Morning Headlamp—AKLNG’s New Year’s resolution

A critical year indeed. The Alaska Journal of Commerce covered the significance 2016 will have on the AKLNG megaproject. If the project does proceed, the sales of natural gas from the North Slope, as liquefied natural gas, or LNG, will bring new petroleum revenues to the state to replace declining oil income. The most important agreements needed include a gas “balancing” contract among the producers that will govern how gas supplies are to be made available if there is a technical problem with production in one of the two fields supplying gas, Prudhoe Bay and Point Thomson. The second most important agreement — and this one is a “must have” for all three of the producers — is a contract on state fiscal terms on gas production, which would assure the companies, and LNG customers, that state taxes on gas won’t change for a period of several years, mostly likely the 20-year or 25-year term of LNG sales contracts. In the coming year, Headlamp looks forward to the four partners working together on the issues facing the megaproject. We will provide updates on these important milestones. 

While the administration frets over eliminating positions (not necessarily people) in state government, the private sector reacts to low oil prices responsibly.  Unfortunately, that means people are losing jobs –the highest paying jobs in the state – as discussed in this Alaska Dispatch piece about unemployment claims in the oil and gas industry: 

 

First Reads

A critical year lies ahead for Alaska LNG Project agreements
Alaska Journal of Commerce, Tim Bradner, December 22, 2015

New year will reveal impacts to economy from budget cuts
Alaska Journal of Commerce, Elwood Brehmer, December 22, 2015

Oil and gas industry jobless claims up for seventh straight month
Alaska Dispatch News, Jeannette Lee Falsey, December 22, 2015

North Slope companies to keep up spending
The Peninsula Clarion, Tim Bradner, December 22, 2015

 

Alaska Politics

Fights shape up over taxes, spending, revenue
Alaska Journal of Commerce, Time Bradner, December 22, 2015

Alaska lawmakers waste money on boondoggles and propose Alaskans cover the bill
Alaska Dispatch News, Sam Combs, December 22, 2015

Native groups, unions put cash behind effort to link PFD, voter registration
Alaska Dispatch News, Nathaniel Herz, December 22, 2015