Permanent Fund revenue tops oil and taxes as Alaska’s budget foundation
James Brooks, Anchorage Daily News, March 18, 2019
The Alaska Permanent Fund has surpassed the oil industry and all other taxes combined as the cornerstone of the state budget, according to an updated forecast from the Alaska Department of Revenue. According to the figures released Friday and presented Monday to the Senate Finance Committee, the Permanent Fund will deliver $2.7 billion to the state treasury this fiscal year. The oil industry will pay $2.1 billion in taxes and royalties. The state will collect another $548 million in other revenue, according to the latest forecast.
Our Take: From the Alaska Oil & Gas Association “Today, officials with the Alaska Department of Revenue predicted that oil production will essentially hold steady in the near term and increase when large new fields like Willow and Pikka come online in the longer term. While the spring production forecast shows a temporary dip compared with fall 2018 predictions, this was attributed to Spy Island at the Nikaitchuq field going partially offline earlier this year; the field has since returned to production with volumes up to daily standards.”
LNG Sector Dangerously Dependent On Chinese Demand
Irina Slav, OilPrice.com, March 18, 2019
The liquefied natural gas industry has become too reliant on demand for the fuel from China, industry executives warned at last week’s CERAWeek, advising players in the LNG field to try and broaden their markets before they begin suffering the impact of this overreliance. Reuters quotes several energy industry executives as reminding their peers demand for LNG in China this year will be slower than previously expected and lower than the last two years. Also, they said the demand producers have seen come from China during these last two years does not necessarily have to be indicative of future demand. The core of the message is simple: Take it easy.
Hilcorp To Begin Seismic Project In Cook Inlet
Jennifer Williams, KSRM, March 18, 2019
Hilcorp Alaska will be conducting a 3-D seismic survey in the federal waters of lower Cook Inlet during the next couple of months. This survey will occur within the lower Cook Inlet, south of the Forelands and west to southwest of Homer. Hilcorp plans to start the project in April which would allow completion in early summer. The data will be acquired using a specially designed marine seismic vessel towing 8‐10 approximately 1.5-mile-long recording cables with a dual air gun array. Mike Dunn, Project Manager: “We expect to have the vessel here in the middle of April, the permits to happen the first week of May, and we will shoot about 175 square miles of seismic. We expect the project to take about 40 days.”
From the Washington Examiner, Daily on Energy:
BISHOP WILLING TO WORK WITH DEMOCRATS ON CLIMATE ONCE THE ‘FLUFF’ HAS SETTLED: The top Republican on the House Natural Resources Committee says he is willing to work with Democrats on climate change legislation, but not before they stop grandstanding and start working within the panel’s jurisdiction.
“When they finally get off the [public relations] fluff road, and start doing something of substance, we will respond with issues of substance,” Rep. Rob Bishop, R-Utah, told John during an exclusive interview at his Capitol Hill office.
It’s not unrealistic that the GOP would work with Democrats on public lands legislation that addresses greenhouse gas emissions. “We did in the past, we’ll do it now, we’ll do it going forward,” Bishop said.