Morning Headlamp — “A lot of projects chasing that gap”

According to the Alaska Journal of Commerce, the Alaska Gasline Development Corporation is finishing up its negotiations to take over the leadership role on the gasline megaproject, negotiating the transition of project assets from the three producer partners, ExxonMobil, ConocoPhillips and BP. The state-owned corporation is now examining different options for project structure before filing its final application to FERC and is trying to market North Slope gas to worldwide markets, most aggressively in Asia. “There are a lot of other projects chasing that gap, so we’ve got to be competitive,” Alaska LNG Project Vice President Fritz Krusen said. “Second of all … it takes years and years to get there. We have to make a decision to move, to catch that window, fairly soon.”  The difference between a valid pipeline project and a pipedream is a fine line – and Alaska shouldn’t proceed with spending hundreds of millions of dollars on a project that is most likely to fail. 

Friendly neighbors. According to Damian Bilboa, Alaska LNG Business Development Manager for BP, “Without the support of the community, goals remain unfulfilled.” Bilboa penned an op-ed in the Alaska Journal of Commerce emphasizing BP’s commitment to the community at large, specifically graduation rates. According to Bilboa, “High expectations and community support can also enable our children to reach their full potential. That is why I support the 90% by 2020 community effort to improve high school graduation rates in Anchorage and why I am proud to be its co-chair. 90% by 2020 is a unique collaboration to improve high school graduation rates to 90% or above by 2020, and then continue to improve. We do that through a data driven effort to drive improvement in graduation rates.”

According to new findings from the EIA, oil wells drilled horizontally through hydrocarbon-bearing formations are often among the most prolific oil wells in the United States. In 2015 nearly 77% of the most prolific U.S. oil wells, or those producing more than 400 barrels of oil equivalent (BOE) per day, were horizontally drilled wells. For about 85,000 moderate rate wells producing in 2015, defined here as more than 15 BOE per day and up to 400 BOE per day, 42% were drilled horizontally. Of the approximately 370,000 lowest-rate, marginal oil wells in 2015, also known as stripper wells, only about 2% were horizontal wells.


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First Reads

When it comes to Alaska LNG project, the big elephant in the room is cost
Alaska Journal of Commerce, Elizabeth Earl, November 3, 2016

Interior race between political veterans could shape Alaska Senate
Alaska Public Radio News, Rachel Waldholz, November 3, 2016

Want something done? Raise your expectations…
Alaska Journal of Commerce, Damian Bilboa, November 3, 2016

State wins fight over attorney fees following ‘bad faith’ decision against Justice Department
Alaska Dispatch News, Alex DeMarban, November 4, 2016

Oil wells drilled horizontally are among the highest-producing wells
US Energy and Information Administration, November 4, 2016