Morning Headlamp — What it’s like to fail industry employees

First in potential, not in action. A study that found the United States has overtaken industry giants Saudi Arabia and Russia in recoverable oil reserves. The U.S. is sitting on 264 billion barrels, 8 billion barrels more than Russia and 52 billion more than Saudi Arabia, the dominant member of the Organization of Petroleum Exporting Countries (OPEC), according to the report by Rystad Energy, a respected oil and gas consulting firm based in Oslo. “It is an encouraging study,” said Saeed Irani, president of Irani Engineering, a Sacramento company that is one of the state’s leaders in oil field operations. “It shows that even though our economy is so vast and diverse, oil is still going to play a big part in it.” Can lawmakers please now realize how much potential Alaska has on a global scale!?

 “This is what it’s like to fail.” Alaska Public Radio News’ Alaska’s Energy Desk compiled an excellent profile of Industry workers who have lost their jobs due to low-price and anti-industry environment. Rachel Mills and Brad Campbell both lost their jobs in the oil and gas industry and have gone through months of economic uncertainty. According to Mills, who was formerly a botanist for ASRC Energy Services, “It was a January sunny day, and I’m just sitting in the kitchen, and I’m thinking, wow, so this is what it’s like to fail.” According to Department of Labor economist Neal Fried, with the exception of a brief slowdown in 2009, when the Great Recession hit tourism, Alaska has seen economic growth every year since 1988. Until now.

Headlamp sincerely thanks APRN’s Alaska’s Energy Desk for profiling what industry job loss looks and feels like. We hope lawmakers give this article a thorough read before they propose or pass any more anti-industry policies.

The Division of Oil and Gas has officially rejected BP’s 2016 operational plan for Prudhoe Bay, but is extending last year’s plan until Nov. 1 in hopes the company will provide information on its efforts to market natural gas from the oilfield. Oil and Gas Director Corri Feige wrote a 15-page letter to BP Alaska Reservoir Manager Scott Digert on June 30 rebutting several arguments BP and the fields primary working interest owners, ConocoPhillips and ExxonMobil, have made over the past few months as to why they cannot give the state what it wants. BP has until Sept. 1 to submit a modified plan of development for review by the division, according to the letter. Subsequently, the 2015 plan has been extended until Nov. 1 “to allow continued operations at (the Prudhoe Bay Unit),” the letter states.

Several businesses and Alaska’s attorney general have submitted statements to the Regulatory Commission of Alaska, questioning a proposed rise in the fees charged for shipping gas through the Kenai Beluga Pipeline. The pipeline company has applied to the commission for a rate rise from 29.15 cents to 63.98 cents per thousand cubic feet of gas, more than doubling the existing rate. The tariff filing has come as the result of a settlement between various stakeholders in the pipeline infrastructure, agreeing with the formation of the Kenai Beluga Pipeline as the consolidation of what had been four different but interconnected pipelines.

 

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First Reads

State rejects Prudhoe plan
Juneau Empire, Elwood Brehmer, July 6, 2016

U.S. oil reserves larger than those of Saudi Arabia or Russia
Los Angeles Times, Rob Nikolewski, July 5, 2016

Cook Inlet gas pipeline stakeholders question doubling of shipping fees
Alaska Dispatch News, Alan Bailey, July 4, 2016

From the oil patch to oil & vinegar
Alaska Public Radio News, Rachel Waldholz and Eric Keto, July 6, 2016