New Permanent Fund Mandate; Dunleavy leading Begich and Walker by double digits

Permanent Fund managers to look for in-state investment opportunities
Rashah McChesney, Alaska’s Energy Desk, September 27, 2018

Alaska’s Permanent Fund Corporation has a new mandate to increase the amount of the Permanent Fund that is invested in the state. The fund’s Board of Trustees adopted the new policy Thursday during a meeting in Anchorage. It sets a goal of increasing the amount of the Permanent Fund assets invested in-state to at least 5 percent in five years. Permanent Fund CEO Angela Rodell told the board what that would look like in dollars. “…By 2023, at least $2.4 billion of the fund — if the fund stays flat — would be invested in state,” she said.

Our Take: In other Permanent Fund news – Former Attorney General Craig Richards (former law partner of Governor Walker) was elected Chairman of the board.

Poll: Dunleavy has huge lead on Walker, Begich
Steve Quinn, KTVA, September 27, 2018

Republican gubernatorial candidate Mike Dunleavy has strong polling lead over Independent Gov. Bill Walker and Democratic challenger Mark Begich, according to a survey released Thursday by pollster Ivan Moore. Dunleavy has put 21 points between himself and incumbent Walker, who also trails Begich, a late entry just five months ago and whose candidacy essentially created a three-way race. Conducted Sept. 21-25, the poll has Dunleavy with 44 percent support; Begich gained 29 percent backing and Walker earned nearly 23 percent.

Our Take:   Begich is the only candidate supporting the job-killing Ballot Measure 1.

Future US LNG plants set to face gas supply issue
Caroline Evans, Upstream Online, September 27, 2018

Future US liquefied natural gas facilities may have a more difficult time sourcing feedstock than previous projects, despite an abundance of resource. Following the completion of the “first wave” of US LNG projects by 2022, developers in the “second wave” of US LNG projects – including Freeport LNG, Sempra’s Cameron LNG and Cheniere’s Sabine Pass LNG – could find themselves competing for pipeline capacity to serve their facilities. “At a high level, the US Gulf Coast is getting crowded,” said Kristy Kramer, Wood Mackenzie’s head of Americas gas research. “There’s a lot more activity now than there was when the first wave was going on, and that means the pipeline capacity that’s needed to reach the facilities will be harder to come by.” Wood Mackenzie estimates that there will be 70 million tonnes per annum of US LNG capacity online by 2022, with an additional 50 million tpa expected by 2030.

 

From the Washington Examiner, Daily on Energy:

CHINA REDUCING OIL IMPORTS FROM IRAN AHEAD OF U.S. SANCTIONS: Even China is reducing its imports of oil from Iran ahead of U.S. sanctions set to start in November.

Chinese refiner Sinopec is cutting in half its imports of crude from Iran this month, Reuters reported Friday. The Trump administration has said that starting Nov. 4, it will block countries from using the U.S. financial system if they continue buying oil from Iran. The zero-tolerance policy has contributed to rising oil prices, because Iran is a major supplier.

But experts have predicted it could be difficult to wean China off Iranian oil.

Most of Iran’s oil exports go to Asia, with China, India, South Korea and Japan being the largest purchasers. China and India combined buy 60 percent of Iran’s total exports. The U.S. imports no Iranian crude.