Morning Headlamp – House Majority Reign of Terror Ending? 

Bill Nye the Science Guy. “The question frequently comes up, why focus so much on Climate Change issues? The answer is simple. If the science isn’t good and the political trajectory continues, millions of jobs in the coal, oil and gas industry will be destroyed worldwide. If the science is good, then the oil and gas industry has an incredible history of innovation and must be enlisted as an active participant in the development of solutions, rather than demonized and demolished.”

Don’t know what you got, ‘til it’s gone. Alaska Journal of Commerce editor Andrew Jensen believes the House Majority’s unwillingness to compromise with Governor Walker and the Senate could spell the end of their reign. Jensen writes, “They overreached by ratcheting up their usual attacks on the oil industry with a bill to double and triple effective tax rates between $50 and $75 per barrel, refused to cut the budget by any measure, set up an overly generous PFD and attempted to pay for it by extracting $700 million per year from Alaskans’ paychecks.”

Drill Baby Drill. Alaska Department of Natural Resources officials have approved BP’s work plan for the Prudhoe Bay oil and gas field without issue, a year after state demands for new information led to a summer-long standoff over the annual report. Division of Oil and Gas Director Chantal Walsh approved the 2017 Prudhoe Bay Plan of Development May 25 in a letter to BP Alaska management. This year’s Prudhoe POD contains sufficient information about BP’s efforts to support a project to commercialize North Slope natural gas reserves — and those of its fellow Prudhoe Bay working interest owners ConocoPhillips and ExxonMobil — that the plan was approved on a normal schedule, according to Walsh.

Supply and Demand. Oil prices slid 5 percent on Wednesday to a one-month low, after an unexpected increase in U.S. inventories of crude and gasoline fanned fears that output cuts by major world oil producers have not done much to drain a global glut. Crude stocks in the United States grew 3.3 million barrels to 513 million barrels, according to the U.S. Energy Information Administration (EIA). That confounded forecasters who had predicted a drop of 3.5 million barrels, especially a day after data from the American Petroleum Institute indicated an even bigger fall.

Don’t confuse activity with results. Though there’s little public evidence that the House and Senate are closing their huge divide, House Speaker Bryce Edgmon said in a phone interview Wednesday that “there’s a lot of active dialogue taking place in the Capitol.” “Maybe it doesn’t appear that way,” said Edgmon, who leads the largely Democratic House majority. But, he added, “There’s a lot of people talking and a lot of people trying to bring this to a resolution.” Democrats and organized labor groups are planning “keep Alaska open for business” rallies Sunday in Anchorage, Fairbanks and Juneau. The state is just over three weeks from a government shutdown.

Necessity is the Mother…. Researchers at Florida International University are developing an analytical tool that can help determine what happens to oil after it spills or leaks into the environment—technology that could lead to improved cleanup methods.

 

First Reads

Alaska Gov. Walker’s ‘compromise’ offer moves state lawmakers no closer to budget deal

Alaska Dispatch News, Nathaniel Herz, June 8, 2017

Oil prices fall for second day as concern grows over world supply

Alaska Dispatch News, Amanda Cooper, June 8, 2017

Harsh Truth About Climate Change Science
Oil Pro, Brian Mitchell, June 8, 2017

Oil dives 5 percent on surprise build in U.S. crude, gasoline stocks
Reuters, David Gaffen, June 7, 2017

New analytical tool could aid in effective cleanup of oil spills
North American Shale Magazine, Patrick C. Miller, June 6, 2017

No repeat of Prudhoe standoff as state approves 2017 plan
Alaska Journal of Commerce, Elwood Brehmer, June 7, 2017

AJOC EDITORIAL: House Majority has lost. They just don’t know it yet
Alaska Journal of Commerce, Andrew Jensen, June 7, 2017