Friday’s Fast Five

August 26, 2016 | Posted in : News

Top Story of the Week

This week, AKLNG officials came before the Senate and House resource committees to provide an update on the project’s developments. Analysts from energy consulting Wood Mackenzie suggest that the project is s not competitive and likely cannot succeed in the current market.

Top Reads of the Week

NANA shareholders seek meeting over company finance concerns
Alaska Dispatch News, Annie Zak, August 17, 2016
When Moody’s Investors Service downgraded NANA Development Corp.

Surrender In The Arctic: The DOI Five-Year Plan
Forbes, David Blackmon, August 22, 2016
In the United States, drilling in the offshore and other environmentally sensitive areas has become an increasingly controversial topic of discussion and often a political football over the last 40 years or so.

Alaska LNG Project submits second draft of resource reports to FERC
Alaska Journal Commerce, Elizabeth Earl, August 15, 2016
Members of the public can get another look at the results of years of fieldwork conducted by the Alaska LNG Project now in the reports submitted to the Federal Energy Regulatory Commission.

Quote of the Week

“The future of Alaska’s creditworthiness likely hinges on the willingness and ability of its political leaders to reach agreement on substantive fiscal reforms in the coming months.”S&P analyst John Sugden

 

Share on :

Morning Headlamp — AKLNG

August 26, 2016 | Posted in : News

 

There was so much information provided this week about the status and the future of AKLNG.  Headlamp is taking some time to digest it all and will be back next week with our impressions.  

 

First Reads

Oil producers balk following new study calling Alaska’s LNG project uneconomic
Alaska Dispatch News, Alex DeMarban, August 26, 2016

BP backs Walker administration on AK LNG
Alaska Journal of Commerce, Elwood Brehmer, August 25, 2016

Oil partners in Alaska LNG pull out of project
KTVA, August 25, 2016

What’s Next For Alaska?
Real Clear Energy, August 25, 2016

What’s Propelling High Arctic Energy Services, Inc. to Decline So Much?
Consumer Eagle, Peter Erickson, August 25, 2016

 

Share on :

AKLNG Hearings Part 2

August 25, 2016 | Posted in : News

Yesterday, the joint hearing of Senate and House resources focused on:

  • An update from Steve Butt, Senior Project Manager for AKLNG reviewing the Pre-FEED deliverables and summarizing the current status of the project.
  • A presentation by David Barrowman of Wood Mackenzie, a global energy, metals and mining research and consultancy group, that provided the results of the Alaska LNG Competitiveness Study.
  • Keith Meyer, President of AGDC, who gave a report on their view of the project in its current state and possible paths forward.

Click here to access all of the documents from yesterday.

Today, the hearing continues with the following line-up:

Nikos will be discussing the pros and cons of a state led project and different options for moving forward. This promises to be an incredible close to the hearings. His report and slide deck were posted here yesterday.

Watch the hearing live at 1pm on akleg TV:

http://w3.legis.state.ak.us/#tab5

 

Share on :

Morning Headlamp — Industry analysts weigh in on AKLNG at House hearing

August 25, 2016 | Posted in : News

Dose of reality from Wood Mackenzie. AKLNG, as currently envisioned, is not competitive and likely cannot succeed in the current market. That’s the conclusion of a new report from outside consulting firm Wood Mackenzie. Wood Mackenzie’s David Barrowman told lawmakers yesterday that his firm compared the project with other liquefied natural gas projects around the world, and found that it’s simply too expensive. One option is bringing in outside investors to fund the gas line, instead of the current partners funding it themselves. Another path is full state ownership, which might lower federal taxes.

Barrowman said the picture isn’t entirely gloomy for Alaska. Buyers don’t just purchase based on cost. If I’m a purchaser, he said, “I don’t want to be buying from a country that may turn into a conflict zone fairly quickly.”  “I was expecting doom and gloom, and I’m actually feeling a little optimistic at this point,” said Sen. Bill Wielechowski. 

 

Help us spread the word! Tell your friends, colleagues, family and more to sign up today for the latest in AK energy, politics and industry.  Subscribe to AK Headlamp here: http://bit.ly/1OdpLVY

 

First Reads

Report: Gas line project not competitive without major changes
Alaska Public Radio News, Rachel Waldholz, August 24, 2016

Analysis: Gas price drop renders pipeline questionable
Juneau Empire, James Brooks, August 24, 2016

Alaska LNG Project submits second draft of resource reports to FERC
Alaska Journal of Commerce, Elizabeth Earl, August 24, 2016

Crude Oil: Imports Surge to 2nd Highest Level Since 2012
Seeking Alpha, Albert Alfonso, August 25, 2016

 

Share on :

Morning Headlamp — Alaska’s new AG weighs in on industry issues

August 24, 2016 | Posted in : News

Doctor’s orders. Dr. Jack Hickel, Alaska pioneer Wally Hickel’s son, disagrees with Gov. Bill Walker’s plan to restructure the Permanent Fund and to cap the Permanent Fund dividend to help balance the budget. According to Hickel, “I believe the Permanent Fund and the dividend must remain permanent and unaltered for the benefit of all Alaskans, both now and in the future…Some think the dividend is a needless giveaway. But I believe that our natural resources, such as oil, gas, minerals, trees, marine life, etc., were put on this Earth by God to benefit all the people so that mankind would have a way to sustain itself.”

In an interview with the Alaska Dispatch News, Alaska’s newly appointed attorney general Jahna Lindemuth fielded questions about Alaska’s oil and gas industry. When asked about her role in oil-and-gas issues Lindemuth said, “I’m the attorney general and I have to be responsible for any final decisions the state makes on legal issues. We have a variety of consultants we use as outside counsel on a bunch of different issues. I view him [former AG Craig Richards] as the same as we do with other outside counsel. They can make recommendations and be involved but at the end of day if a big decision comes forward, I expect to weigh in.” There are many critical legal issues facing Alaska’s oil and gas industry.  The structure of an Alaska LNG project and the Prudhoe Bay plan of development will set the stage for the future of resource development in this state. Headlamp hopes that any decisions made on legal issues enhance, rather that detract from, Alaska’s ability to continue to thrive and prosper through responsible resource development. 

Citigroup analysts including Ed Morse recently said, “What appears to be unfolding into next year is a seismic change in the functioning of the global LNG market. The U.S. Gulf Coast is likely to begin to emerge as a major, if not the major, gas trading hub in the world, with cargoes being lifted and awaiting direction.”

According to the United States Geological Survey (USGS) Mineral Commodity Summaries for 2016, the estimated value of raw materials mined domestically in 2015 totaled $78.3 billion. Additionally, minerals’ mining employs more than 400,000 people. In an industry plagued by redundant regulatory hurdles, additional rules must be considered carefully. Currently, the EPA is fast tracking new rules for the hardrock mining industry that ignore modern mining practices and duplicate existing federal and state programs. The EPA proposal does not take into account existing state and federal programs that are designed to eliminate or significantly reduce the same environmental risks the EPA wants to cover under its own rule. To make things worse, it appears that the EPA’s formula for estimating the costs of the rule relies on data that exaggerates the risk at existing modern mining projects. Headlamp is frustrated once again. More rules and red tape won’t spur greater levels of investment or create jobs, but instead will do just the opposite.

 

Help us spread the word!  Tell your friends, colleagues, family and more to sign up today for the latest in AK energy, politics and industry.  Subscribe to AK Headlamp here: http://bit.ly/1OdpLVY

 

First Reads

Fiscal plan must strengthen both Permanent Fund and dividend
Alaska Dispatch News, Dr. Jack Hickel, August 23, 2016

Alaska’s attorney general looks for creative solutions to address crime amid budget cuts
Alaska Dispatch News, Alex DeMarban and Nathaniel Herz, August 23, 2016

Citi Sees Future of LNG Trading in Tanker Traffic Near Texas
Bloomberg, Dan Murtaugh and Kelly Gilblon, August 23, 2016

 

Share on :

Legislative Hearings on Alaska’s Gasline Future

August 23, 2016 | Posted in : News

Tomorrow afternoon at 1pm the Senate and House resources committees will host a hearing to get an update on the “New Concept Plan for a State-led Pipeline” from the Alaska Gasline Development Corporation (AGDC).

It’s important for Alaskans to know the details. The following information has been posted for the public’s review:

  • Alaska LNG Project anti-trust analysis
  • Alaska LNG Corporate tax analysis
  • Analysis on AGDC’s ability to change models under SB 138
  • Alaska Department of Revenue State Financial Participation Document
  • AKLNG Community Impacts by Larry Persily

Click here to access all of the documents for tomorrow’s hearing.

Alaskans can attend the hearing in person at the Anchorage LIO or watch live by clicking the link below:

http://w3.legis.state.ak.us/#tab5

Share on :

Morning Headlamp — AKLNG to go under the legislative microscope

August 23, 2016 | Posted in : News

AKLNG heads to Anchorage. The House and Senate resource committees will meet in Anchorage  tomorrow and Thursday to review Gov. Bill Walker’s proposed new direction for a large scale natural gas pipeline project. The meeting is scheduled for 1 p.m. tomorrow and Thursday and will be broadcast online on akleg.tv. The committee will be taking invited testimony only. Headlamp applauds more legislative oversight being scheduled for the state’s role in AKLNG.

Best friends again, with strings attached. S&P Global will not lower the state’s credit rating — at least for now. S&P analyst John Sugden said Gov. Bill Walker’s decision to veto $1.3 billion in spending — including half of residents’ PFD checks — bought the state some breathing room. That announcement came as something of a surprise: S&P warned in June that if lawmakers couldn’t come up with a long-term budget solution, it would likely knock down Alaska’s credit rating within 90 days. “In our view,” S&P’s analysts wrote, “the future of Alaska’s creditworthiness likely hinges on the willingness and ability of its political leaders to reach agreement on substantive fiscal reforms in the coming months.”

 

Help us spread the word!  Tell your friends, colleagues, family and more to sign up today for the latest in AK energy, politics and industry.  Subscribe to AK Headlamp here: http://bit.ly/1OdpLVY

 

First Reads

Legislature hosting two-day pipeline hearing
Fairbanks Daily News Miner, August 22, 2016

Gov’s budget veto has at least one fan: rating agency S&P
Alaska Public Radio News, Rachel Waldholz, August 22, 2016

Uptick in oil prices helps Alaska’s bottom line, but not much
Alaska Public Radio News, Rashah McChesney, August 22, 2016

 

Share on :

Morning Headlamp — Russia continues Arctic activity in US’ absence

August 22, 2016 | Posted in : News

Making serious headway. According to a Forbes report, Russian oil company Gazprom Neft, the country’s fourth largest oil producer, said two weeks ago that four wells were now in production at the northern Prirazlomnoye field after two more were successfully started. The Prirazlomnoye field is an Arctic offshore oilfield located in the Pechora Sea, south of Novaya Zemlya, Russia. Russian President Vladimir Putin also opened the Arctic gate marine oil terminal on May 25, which provides access for Russia’s Arctic-sourced crude to both European and Asian markets. Three terminals on Russia’s northern coast in the Arctic circle handled a combined 230,000 bpd in the second quarter of 2016, almost doubling from 130,000 barrels as recently as January last year, with projections for that to increase to around 400,000 bpd by 2020 – oil and revenue that Russia will exploit to its fullest.

Might as well wave the white flag. In another piece, Forbes contributor David Blackmon argues that the DOI Five-Year plan marks a “surrender” in US Arctic policy. According to Blackmon, “As Russia gears up to dominate the Arctic region, having created the world’s largest fleet of ice-breaking ships and even going so far as to plant its national flag at the North PoleDoD officials have let it be known that they see no conflict between energy exploration in the Beaufort and Chukchi and their own military operations. Indeed, there is a strong case to be made that oil and gas operations in the region can actually coordinate with and help to strengthen the U.S. military’s presence there…Every DOI five-year plan for development of energy resources in federal waters is important to the nation’s future. These plans set the parameters for the exploration and development of a significant share of our oil and natural gas, which have long been the main drivers of the U.S. economy, such a significant portion that the collection of royalties from oil and natural gas produced on federal lands is the federal government’s second largest source of revenue.”

Every step we take out of the Arctic is a step forward for other world powers—more often than not, Russia. While the icebreaker and offshore lease discussions are frequently bogged down by partisan politics, other countries are capitalizing.

 

Help us spread the word!  Tell your friends, colleagues, family and more to sign up today for the latest in AK energy, politics and industry.  Subscribe to AK Headlamp here: http://bit.ly/1OdpLVY

 

First Reads

A Deal With The Devil? Russia Kicks Up Artic Drilling
Forbes, Tim Daiss, August 22, 2016

Surrender In The Arctic: The DOI Five-Year Plan
Forbes, David Blackmon, August 22, 2016

Louisiana’s sinking coast a $100 billion nightmare for Big Oil
Alaska Dispatch News, Catherine Traywick, August 21, 2016

NANA shareholders seek meeting over company finance concerns
Alaska Dispatch News, Annie Zak, August 22, 2016

 

Share on :

Extra Edition: AGDC’s President’s Report to Board of Directors

August 19, 2016 | Posted in : News

Yesterday, Keith Meyer, President of the Alaska Gasline Development Corporation (AGDC) provided a report to the corporation’s Board of Directors.

Key Messages from the report:

  • Pre- FEED (front end engineering and design) is over 90% complete and deliverables are anticipated by mid-September
  • The parties are working together on commercial options to improve the project’s ability to compete in a global LNG market
  • The parties are working together to transition the project to State leadership
  • The transition to an AGDC-led Alaska LNG project is underway with a target to begin by the end of October with completion by the end of the year. AGDC will be responsible for managing the project going forward:
    • Applying for regulatory approval
    • Securing the commercial commitments from gas sellers, shippers and buyers
    • Acquiring the equity and debt financing required to complete the project
    • Preparing to start FEED

AGDC has funding through FY 2017 and is considering a request for supplemental funding.

Senator Cathy Giessel, chair of Senate Resources, will be holding a joint hearing with House Resources on August 24th and 25th, beginning at 1pm, to review the new concept plan for a state-led pipeline project.

Click here to review the entire report.

Share on :

Friday’s Fast Five

August 19, 2016 | Posted in : News

Top Story of the Week

This week, AGDC President Keith Meyer released the plans for the state to take the lead on AKLNG. If all goes according to plan, the state should take the reins by the end of the year.

Top Reads of the Week

Interior gas project still lacks key deals to move forward
Alaska Journal of Commerce, Elwood Brehmer, August 17, 2016
Visible progress has all but stopped on the Interior Energy Project as negotiations on essential agreements chug along. Headlamp would note that this is a project driven by government, not the private sector.

If feds hold a Cook Inlet lease sale, will anyone come?
Alaska Dispatch News, Alex DeMarban, August 17, 2016
For the past decade, a lack of industry interest has prompted the federal government to cancel several proposed lease sales in Cook Inlet.

What Does Your Dream Field Look Like? Armstrong Oil & Gas Believes You Might Find it in Alaska
Oil 360,  August 15, 2016
Demand could outpace supply by 225 billion barrels by the end of this decade.

Quote of the Week

“Let’s go back to grit”John Hendrix, Gov. Bill Walker’s chief oil and gas adviser

Share on :

Page 30 of 63« First...1020...2829303132...405060...Last »