Morning Headlamp: Construction Pioneers share stories of Pride

Pipeline at 40: Construction Pioneers share stories of pride. The Trans Alaska Pipeline, which winds across 800 miles from one end of the state to the other, reached a milestone in its history this summer, with its 40th anniversary. “There are few things in Alaska’s history that equals the impact of the magnitude of the pipeline,” said Dr. Stephen Haycox, distinguished professor emeritus at the University of Alaska, Anchorage. “The money that it brought in was unimaginable.”

One giant step. Mike Dunleavy, the socially and fiscally conservative Republican state senator from Wasilla, intends to run for governor next year, according to paperwork he filed Monday with Alaska campaign finance regulators. Dunleavy has for months publicly acknowledged his interest in the job, which is currently held by independent Bill Walker. Dunleavy’s “letter of intent” filed Monday with the Alaska Public Offices Commission is a formal step that allows him to start spending money and accepting campaign contributions.

Lower for Longer.  BP plc (BP-NYSE) CEO Robert Dudley defined his industry’s mantra over two years ago as “lower for longer,” a reference to where oil prices would trade and why oil companies needed to downsize to survive this environment. At last week’s World Petroleum Congress in Istanbul, Turkey, Mr. Dudley may have coined the new industry mantra: “We have to stay on a capital diet.”

Oil could drop below $40 - Goldman Sachs

What if they’re wrong? In a long-term outlook published last month, Bloomberg New Energy Finance predicted that gas’s market share in global power generation will drop from 23 percent last year to 16 percent by 2040, and that gas-fired power generation capacity will start to decline after 2031. BP Plc has highlighted “risks to gas demand” as a key uncertainty, including the possibility that consumption plateaus by 2035, “squeezed out by non-fossil fuels.” If those forecasts play out, it has huge implications for Total, BP and other oil majors already grappling with a possible surge in electric car use. Gas-exporting nations most notably Russia, Qatar and Australia will also be exposed. The global gas industry, based on multi-billion dollar pipelines and export plants, has decades long investment cycles and decisions being made today rely on rising demand until the middle of the century.

AOGCC Supports BP’s Actions.  BP has shut in 14 wells at the Prudhoe Bay field to prevent a replay of the oil and gas release on April 14 that the company now believes was caused by a “mechanical failure” after permafrost, melted from hot production fluids, caused the ground to sink and put extra pressure on the well. Additional details about the incident and BP’s plans to address the problem emerged in a June 27 report from BP to the Alaska Oil and Gas Conservation Commission. The agency said in a statement that it agrees with BP’s conclusion and plan. Another nine wells are also being reviewed.  A key element of the plan is a risk assessment of the potential for similar problems at the 14 “highest risk” wells with similar designs that have already been shut in.

First Reads:

Prudhoe Bay spill in April leads to wider review, suspension of 14 wells
Alaska Dispatch News, Alex DeMarban, July 18, 2017

Conservative lawmaker Dunleavy is first high-profile candidate in 2018 governor’s race
Alaska Dispatch News, Nathaniel Herz, July 17, 2017

Sorting Out Long-term Thinking On Oil vs. Short-term Noise
Oil Pro, Allen Brooks, July 18, 2017

What If Big Oil’s Bet on Gas Is Wrong?
Bloomberg, Jack Farchy and Kelly Gilblom, July 17, 2017

Pipeline at 40: construction pioneers share stories of pride
KTUU, Mike Ross, July 17, 2017