Morning Headlamp — Independent Producers Receive Warm Welcome

Back and forth. Pat Galvin, a former state Revenue commissioner and now chief commercial officer for Anchorage-based Great Bear Petroleum, said Nov. 17 at the Resource Development Council of Alaska’s conference that above all else Alaska’s oil tax “pendulum” needs to stop swinging. We have to find a way to reach an equilibrium, not just to avoid future changes, but also to avoid the perception that there’s going to be future changes,” Galvin asserted. Galvin and Caelus Energy Vice President Pat Foley, who has worked in Alaska with other companies, both said the “give” must include a way to pay the current credits owed. Great Bear is owed “tens of millions of dollars” in credits, according to Galvin, while Caelus expects its bill to the state to hit $200 million by next spring.

Mutual respect. CEO of Kenai-based Udelhoven Oilfield System Services, Inc. Jim Udelhoven, wished Caelus and Armstrong CEOs Jim Musselman and Bill Armstrong best wishes in a Fairbanks Daily News Miner op-ed. Udelhoven applauded the two men for their recent discoveries and championing small, independent oil and gas companies on the North Slope. After highlighting the duo’s business savvy and pro-industry positions, Udelhoven closed by hoping the pair’s stay is “long and prosperous.”

Bluecrest Energy is seeking eased loan terms because it is short on money after Gov. Bill Walker’s decision this summer to defer tax-credit payments owed to oil companies. Bluecrest has said it is owed tens of millions of dollars from the state. The lack of payment affected the company’s ability to fund an account meant to protect the state, according to the resolution.

Think of the children. In a Nov. 16 speech at the Resource Development Council’s annual conference Janet Weiss, president of BP Exploration (Alaska), celebrated the past success of the Alaska oil industry while also reviewing some of the challenges that the industry faces for the future. Addressing the future challenge will require improved efficiency, the use of appropriate technologies and a fiscal environment that keeps Alaska competitive, Weiss said. “What kind of Alaska are we going to pass to our children,” she asked. “Alaska can have a thriving and competitive oil and gas industry.” “As we face a tough situation, it is about coming together with honest debate, honest dialogue, ensuring that we are thinking about more oil going down TAPS…so that we can have this 40-plus-year additional future,” Weiss said.

 

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First Reads

Independent explorers and the oil tax pendulum
Juneau Empire, Elwood Brehmer, November 28, 2016

Delivering energy in a new way on the North Slope
Fairbanks Daily News Miner, Jim Udelhoven, November 27, 2016

BPXA president outlines future options
Petroleum News, Alan Bailey, November 27, 2016

Regulators: Tanker-truck crashes and spills an increasing worry on Alaska highways
Alaska Dispatch News, Alex DeMarban, November 28, 2016

Alaskan Bob Gillam wants to be U.S. Interior secretary
Alaska Dispatch News, Erica Martinson, November 26, 2016

Oil company wants changes to $30 million state loan after Walker’s tax-credit veto
Alaska Dispatch News, Alex DeMarban, November 26, 2016