The Morning Headlamp, 62 days until Regular Session begins: Bad news for AK Arctic Energy…AKLNG partner seeks cooperation from Washington…AK RDC conference looks to provide AK with more information about its future

Another Loss for Alaska: Statoil. The Wall Street Journal covered reports that Norway’s Statoil said Tuesday it had decided to exit Alaska, echoing a recent move by Royal Dutch Shell to drop plans for development in the near Arctic. Explaining its decision, Statoil said its exploration activities in the Chukchi Sea couldn’t compete with projects elsewhere.

US Senator and Chairwoman of the Senate Committee on Energy and Natural Resource Lisa Murkowski commented on the decision, expressing that she is “very concerned that, for the second time in as many months, a major company has decided to walk away from Alaska because of the uncertainty surrounding our federal government’s support for Arctic development,” and stating that “the real project killer was this administration’s refusal to grant lease extensions; its imposition of a complicated, drawn-out, and ever-changing regulatory process; and its cancellation of future lease sales that have stifled energy production in Alaska.” Headlamp laments the latest loss for AK industry, but also notes that this development highlights the need for Alaska to provide a stable investment climate. 

CP Doubles Down on Cook Inlet LNG. Natural Gas Intel covered reports that ConocoPhillips Alaska Natural Gas Corp. has filed with the U.S. Department of Energy to extend LNG exports from its terminal at Kenai, AK. ConocoPhillips emphasized that approval will “provide tangible benefits to the local community by not only preserving gas well deliverability and enhancing the current supply security of Southcentral Alaska but also by providing an economic incentive and market opportunity for continued exploration and additional gas supply development in the Cook Inlet.” The plant in question significantly smaller than any associated with the AKLNG project, but represents a step in the right direction in seeking cooperation from Washington on the AKLNG project.

Alaska’s Resource Development Council’s annual Alaska Resources Conference is scheduled to begin tomorrow and last through Thursday evening. Notable events include a panel featuring Steve Butt, Mike Navarre and Dan Fauske to discuss the AKLNG project and a presentation by Governor Bill Walker. Headlamp hopes both forums will provide more details concerning the AKLNG project and the Governor’s fiscal plan.

 

First Reads

Statoil Follows Shell in Quitting Alaska
Wall Street Journal, Kjetil Malkenes Hovland, November 17, 2015

ConocoPhillips Seeks Kenai, AK, LNG Export Reauthorization
Natural Gas Intel, Joe Fisher, November 16, 2015

Oil and gas lease sales scheduled for Wednesday
Juneau Empire, November 17, 2015

 

Alaska Energy News

Alaska holding out against emission-cutting policies
Alaska Public Radio News, Johanna Eurich, November 16, 2015