Morning Headlamp – Welcome to Overtime

120 is the new 90. With the 90-day legislative session passed, the Alaska State Legislature has entered overtime. There are two budget proposals from the House and Senate which have not yet reconciled, and as of yet there is no sign of an impending deal between the two bodies.

There’s got to be a morning after. The number of people in Alaska receiving unemployment insurance benefits rose last year, according to a new state report, though spiking claims from the oil sector and industries closely tied to it “appear to be subsiding.” In 2016, the state’s first year with a net jobs loss since 2009, the number of people collecting unemployment was up 2.1 percent.  Though many regions of the state saw a rise in unemployment claims, Southeast and the combined area of Anchorage and Mat-Su saw a drop. The total amount of benefits paid out in 2016 was $136 million, the report said, up from $123.5 million the year prior.

Spill contained. Crude oil from a leaking BP well on the North Slope was contained to the gravel drilling pad and didn’t reach the surrounding snow-covered tundra. The gravel pad supports heavy rigs and other hardware atop the tundra. The source of the release, Well 3, is at the Drill Site 2 gravel pad at Flow Station 1, about 5 miles  from Deadhorse Airport. Officials have said there were no reported injuries to people or wildlife.  DEC is coordinating with BP and AOGCC to investigate the cause of the release.

What’s in a number? DNR’s Ed King clarified for the record that the state does not anticipate a 12% oil decline as was reflected in the Spring Revenue Forecast. Finance Co-Chair Anna McKinnon took King to task stressing the need for accurate numbers as the House considers taxing Alaskans.

Sold to the highest bidder? ConocoPhillips is evaluating bids received for their mothballed LNG Plant in Nikiski. The plant could be attractive to developers in the Cook Inlet looking to export LNG to Asia.

Lease sale coming in June. The Alaska Department of Natural Resources is planning a lease sale. DNR’s Division of Oil and Gas announced the Alaska Peninsula Areawide 2017 (APA 2017) and the Cook Inlet Areawide 2017W (CIA 2017W) competitive oil and gas lease sales will be held June 21st.

 

First Reads

This week in Juneau: Alaska lawmakers start overtime with no budget resolution in sight

Alaska Dispatch News, Nathaniel Herz, April 17, 2017

Driven by oil industry job losses, Alaska unemployment claims ticked up last year

Alaska Dispatch News, Annie Zak, April 17, 2017

With a leaking North Slope well controlled, experts seek answers about what happened

Alaska Dispatch News, Alex DeMarban, April 18, 2017

What’s Driving Investment Opportunities in the Arctic?

Bloomberg, April 17, 2017

Alaska schedules offshore oil and gas lease sales

Offshore Mag, Offshore Staff, April 17, 2017

ConocoPhillips has potential buyers for LNG plant in Alaska

Platts, Tim Bradner, April 17, 2017

Senate committee grills state over inaccurate oil production forecast

Alaska Public Media, Rashah McChesney, April 17, 2017