In a report released yesterday, in the Alaska section, BP said that about 16,200 people owed their jobs to the company, divided among direct employees, contractors and other support staff. That’s a drop from more than 24,200 jobs in 2014, according to the oil producer’s two most recent reports. “This is largely reflective of the price environment we’re in,” said Dawn Patience, press officer for BP Alaska. BP’s U.S. Economic Impact Report 2016 is an annual update on the company’s activities. With operations from Alaska to the Lower 48 and in deep-water Gulf of Mexico, BP reports that it injected $80 billion into the national economy in 2015. It said it produced 643,000 barrels of “oil equivalent,” a term that accounts for oil and natural gas production.
The Russian government is temporarily banning new licenses for offshore field development on the Russian Arctic shelf, the Minister of Natural Resources and Environment Minister Sergei Donskoi has said. The move appears to be aimed at focusing investment on existing development projects, especially those relating to gas.
According to a recent Petroleum Intelligence analysis, despite the recent bad news for AKLNG, major LNG projects will probably have a future globally. Bernstein Research ranks Alaska highest at nearly $3,000 per ton, followed by Canada, Mozambique, the US lower 48 and Papua New Guinea, at just over $2,000/ton in terms of production costs. Gas could potentially be monetized more cheaply through floating LNG and modular projects with small trains of less than 3 million tons/yr. that can be brought online as the market develops (PIW Mar.28’16). But for reserves the size of those in Mozambique and Tanzania, large trains of 5 million-6 million tons/yr. would be needed to achieve economies of scale, one industry source argues. The article also points to Mozambique as a promising infrastructure project given Asian markets recent slowdown in consumption.
Gov. Bill Walker reiterated a call Monday for a fix to Alaska’s budget deficit while also signing into law a tax credit designed to incentivize fertilizer company Agrium to reopen its Nikiski plant. Walker signed the bill after speaking at a joint Kenai and Soldotna chambers of commerce luncheon in Kenai on Monday
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BP report highlights sharp reduction in jobs and taxes amid slumping prices
Alaska Dispatch News, Alex DeMarban, September 12, 2016
Alaska prepares for vessel disasters
KTOO, Zoe Sobel, September 12, 2016
New Russian arctic exploration on hold
Offshore Engineer, Elaine Maslin, September 12, 2016
Walker talks finances, LNG in Kenai
Peninsula Clarion, Elizabeth Earl, September 12, 2016
Drilling Productivity Report
US Energy Information Administration, September 12, 2016
How Does America Keep Finding Vast Stores of Energy?
Slate, Daniel Gross, September 12, 2016