by wp_sysadmin | Jul 31, 2019 | Home, News
EPA walks back restriction that loomed over Pebble mine, paving the way for key permit
Elwood Brehmer, ADN, July 30, 2019
EPA Region 10 Administrator Chris Hladick on Tuesday signed a 28-page notice at the direction of agency leaders that formally removes the agency’s proposed “preemptive veto” that loomed over the Pebble project since it was initiated under former President Barack Obama’s administration in 2014.
The move was applauded by Pebble supporters and criticized by opponents.
Pebble CEO Tom Collier said in an interview that, “This is a good day for Pebble. It’s a day I wish had happened much sooner, but it’s a good day for Pebble.”
Our take: Good on the EPA and good for Pebble. The Alliance continues to advocate for a fair and defined permitting process for all resource development projects, and it is refreshing to see the EPA finally agree. Hopefully, this development sends a message that Alaska is, in fact, open for business.
Why energy companies are still investing gasoline in the age of the electric vehicle
Marissa Luck, Houston Chronicle, July 30, 2019
As Shell’s largest research and development center, the 200-acre Houston campus has 1,500 employees and hundreds of contractors. They’re working on everything from formulating new biodiesel to advancing liquefied natural gas into transportation fuels. Their research also extends into something more tangible in the near term: how to improve gasoline.
Even as Shell opens hydrogen-fuel filling stations in California, invests millions of dollars in electric vehicle startups and develops biofuels, it is still pouring billions in research for advancing its core product, fossil fuels. Shell and other oil companies, such as Exxon Mobil and BP, are investing in clean technologies — and launching public relations campaigns to tout their initiatives — but their fortunes are still tied to traditional cars and the billions of people that drive them.
While automakers such as Ford, Volkswagen and GM boost electric vehicle production, EVs still lag behind traditional cars. There were about 1.1 million electric cars on American roadways in last year, up 361,0000 from the previous year, according to the Paris-based International Energy Agency. But overall electric vehicles and plug-in hybrids still accounted for less than 2 percent of the U.S. auto market, according to the IEA.
“We put a lot of focus on time and effort around gasoline vehicles because still the majority of people who are on the road today are going to be in gasoline (powered car),” said Shannon Bryan, North America fuels manager at Shell.
Related: EV tax credit fight sparks lobbying frenzy
Appropriators seek answers on proposed BLM move
Kellie Lunney and Geof Koss, E&E News, July 31, 2019
Senate appropriators want more details about the Trump administration’s proposed relocation of hundreds of Bureau of Land Management jobs from Washington, D.C., to several Western states.
Murkowski said she has some “just basic questions that we need to run through” about Bernhardt’s plan, which she has already indicated support for.
“I’ve always felt that the closer we can get our public lands managers to our public lands that they are managing, the better off we should be,” the chairwoman said.
Of the 550 positions the department studied for its relocation proposal, 60 would stay in the Washington area, including jobs related to budget, legislative affairs and regulatory issues.
‘That is criminal activity.’ Dems clash on scope of action
Mark K Matthews, E&E News, July 31, 2019
Climate change turned into a flashpoint at last night’s Democratic debate when most of the 10 candidates jumped into an argument about the best way to fight rising temperatures without wrecking the American economy.
“As we transition to this clean energy economy, you have got to recognize there are folks that have spent their whole life powering our country,” Bullock said. “And far too often Democrats sound like they’re part of the problem.”
Our take: Bullock seems to be the only one in the Dem v Dem squabble to understand the key issue underlying the Green New Deal and its fantasy policies. Large energy companies are already making considerable investments in renewable energy; undermining them and their workforce just throws up roadblocks.
by wp_sysadmin | Jul 30, 2019 | Home, News
ALASKA BY THE NUMBERS – JULY 2019
Ed King, July 29, 2019
[Oil prices] in July 2019, the first month of FY19, averaged $65.82. There was surprisingly little volatility in the daily oil prices in July, even as some events in the Middle East, that would normally cause panic, were merely shrugged off.
The EIA short-term energy outlook for July sees Brent prices averaging $67 in CY20. If the current ANS premium holds, it would imply an ANS price for FY19 of right around $68.
Of course, the market is always adjusting to changing conditions. And right now, there is a lot of uncertainty in the market. Current options trading implies a 95% confidence interval for ANS of $45 and $92.
Exclusive: First big U.S. offshore wind project hits snag due to fishing-industry concerns
Nichola Groom, Reuters, July 28, 2019
Vineyard Wind, a joint venture between Copenhagen Infrastructure Partners and Avangrid Inc (AGR.N), was scheduled to begin construction this year 14 miles (23 km) off the coast of Massachusetts to power more than 400,000 homes by 2021 – making it the first large-scale offshore wind development in the United States.But a federal environmental study crucial to its permitting has been repeatedly delayed since April, according to published government timelines, without any public explanation from Trump administration officials. Vineyard Wind has said the delays could threaten the project’s viability.
Documents seen by Reuters, which have not previously been made public, show the National Oceanic and Atmospheric Administration’s (NOAA) National Marine Fisheries Service (NMFS) triggered the delays by declining to sign off on the project’s design, as proposed by the Bureau of Ocean Energy Management (BOEM), the lead agency on offshore wind projects.
Vineyard Wind said earlier this month that it told federal officials it would be “very challenging” to move forward with the project in its current configuration if the environmental permit is not issued within four to six weeks. The company wants to start construction soon to lock in a federal tax credit that expires next year. The credit is currently worth 12% of the value of the project.
Our take: It must be a bummer when environmentalists stymie themselves when they realize that green infrastructure involves…infrastructure. Here in Alaska, we know this story all too well. The Alliance continues to support responsible development and hopes that projects like this open the eyes of those who seek alternative energy sources to the dangers of overregulating.
Natural Gas Is Stuck in a Vicious Cycle
Lauren Silva Laughlin, The Wall Street Journal, July 30, 2019
U.S. natural-gas demand, which reached nearly 30 trillion cubic feet in 2018, up from 22 trillion in 2005, when prices peaked at about seven times today’s level, is projected to grow by 7% a year in 2019 and 2020, according to EIA projections. That should slow considerably, but the agency doesn’t see prices rising consistently above $4 per million British thermal units before 2035, given ample supply.
From the Daily on Energy:
LOOKING TO HEAD OFF REGULATION, OIL & GAS INDUSTRY TOUTS VOLUNTARY METHANE REDUCTIONS: The oil and gas industry is touting voluntary efforts to cut emissions of methane, a greenhouse gas more potent than carbon, as it tries to make the case against climate change regulations and mandates that have been proposed by Democrats running for president.
The American Petroleum Institute released its first progress report Tuesday on a voluntary program it started with 27 oil and gas companies in 2017 called The Environmental Partnership, which it created to limit leaks of methane and reduce emissions of related pollutants called volatile organic compounds.
Methane, the main component of natural gas, is more potent than carbon dioxide, although its emissions don’t last as long in the atmosphere. Gas emits half the carbon of coal, making it the cleanest fossil fuel.
The stakes for industry: Environmental groups say methane leaks — which can happen purposely or accidentally during the production and transmission of gas — belie the industry’s attempt to sell gas as a “fuel of the future” rather than one that is phased out over coming decades as part of aggressive climate change plans proposed by Democrats.
“What our industry is really focused on is not pledges from politicians but progress from this industry,” Mike Sommers, API’s CEO, told reporters on a press call Tuesday. “The Environmental Partnership has demonstrated the progress that has occurred.”
Report card: Sommers, along with Matthew Todd, program director of the Environmental Partnership, shared the results of the program’s first ever annual report. The report showed how the partnership, which has grown to 66 members representing more than 80% of the top U.S. natural gas producers, has implemented a methane leak detection and repair program.
Companies conducted more than 156,000 leak surveys in 2018 across more than 78,000 production sites, finding a “leak rate” of only 0.16%. In the Permian Basin, the most prolific shale gas producing region, methane emissions relative to production have fell nearly 40% from 2011 to 2017, the report said.
“The very low leak rate we found is great performance,” Todd said.
Missing information, with no emissions reduction target: But the partnership does not require companies to disclose how many of those surveys it was forced to conduct because of federal or state regulations. That means it’s unclear how much of that work happened as a result of voluntary actions.
The partnership, notably, also does not require any overarching emission reduction goal for participating companies that are combating methane leaks, and the report did not measure the amount of emissions cuts that have occurred as a result of the program.
Todd defended the group’s approach by arguing that a reduction goal could “inhibit” the participation of smaller companies that don’t have expertise in limiting methane leaks, but benefit from the information-sharing in the program.
“If we required an emissions percentage reduction, it could prevent smaller operators from joining the program,” Todd said.
Industry will only go so far: Groups such as the Environmental Defense Fund that cooperate with industry to invest in technological research to better detect methane leaks say the current voluntary approach is insufficient.
Some individual companies, such as Shell, have urged the EPA to keep Obama-era regulations targeting methane leaks, instead of weakening them as planned. Sommers, though, argued that the industry is self-motivated to limit methane emissions because leaks remove product that can be sold for profit.
“We know the threat of climate change is real, but the solutions also have to be based in reality,” Sommers said. “We know from even most ambitious projections that oil and gas will be a significant part of the energy mix for years into the future.”
by wp_sysadmin | Jul 29, 2019 | Home, News
Legislature set to vote on dividend, university funding, rural energy assistance
Steve Quinn, KTVA, July 29, 2019
The Senate and House on Monday are poised to vote on separate budget bills that have implications for the Permanent Fund dividend, college scholarships and efforts to restore significant portions of the $444 million vetoed by Gov. Mike Dunleavy.
The House will take a final vote on a capital budget that not only draws federal matching dollars for highway, airport and construction projects, but it could also restore dozens of funds swept in the constitutional budget reserve. But that will take 30 votes rather than 21 from a simple majority, and the House fell five votes and a single vote short in previous efforts.
Our take: We will be watching closely as legislators take the floor today. The House will attempt to vote for a third and final time to fund the Capital Budget. The near billion dollars in federal match fund many of the capital improvement and maintenance projects that keep or state safe, and trade businesses employed. Now is a good time to contact your legislator and ask them to vote “YES” on funding the Capital Budget.
Legislation would launch wave of relocations
Marc Heller, E&E News, July 29, 2019
The Trump administration’s plans to move the Bureau of Land Management and two Agriculture Department agencies far away from the nation’s capital could be just the beginning of a wave of relocations, if legislation by Sen. Joni Ernst becomes reality.
The Iowa Republican introduced a bill last week to encourage executive agencies to move out of the Washington, D.C., area, with the exception of the Defense Department, the Energy Department, the State Department, the Executive Office of the President and others vital to national security.
From the Daily on Energy:
DEMOCRATIC ATTORNEYS GENERAL OPPOSE EPA GUIDANCE LIMITING STATE AUTHORITY OVER CLEAN WATER PERMITS FOR PIPELINES: A coalition of 14 Democratic state attorneys general is warning the EPA that the agency’s new guidance implementing President Trump’s executive order limiting state authority over oil and gas pipelines is illegal.
Trump signed an executive order April 10 designed to limit the instances in which blue states such as New York can reject pipeline projects using authority granted to states in Section 401 of the Clean Water Act. Section 401 allows states to deny permits if leaks from an energy infrastructure project could harm nearby streams or lakes.
In comments filed Friday to the EPA, the Democratic attorneys general say the law provides states the primary authority to protect water quality within their borders, allowing for “broad discretion” in making decisions over pipeline certifications.
They also say EPA’s new guidance imposes burdensome limitations on states’ abilities to collect information about a project’s expected impacts on water quality, and sets “arbitrary and unreasonable” time limits on states’ completing water quality reviews.
“EPA’s guidance is yet another reckless attempt by the Trump Administration to weaken Clean Water Act protections for the nation’s waters,” said California Attorney General Xavier Becerra. “The EPA must withdraw this unlawful attempt to strip states of their authority to regulate water quality.
NOTICE OF DATES AND LOCATIONS FOR PUBLIC COMMENT MEETINGS
ON THE
DRAFT ENVIRONMENTAL IMPACT STATEMENT
FOR THE
ALASKA LNG PROJECT
(July 26, 2019)
The staff of the Federal Energy Regulatory Commission (FERC or Commission) will be present to receive comments on the draft Environmental Impact Statement for the Alaska LNG Project (Project) as follows:
| Date and Time (Alaska Daylight Time) | Public Comment Meeting Locations |
| Monday September 9, 2019 5:00–8:00 p.m. | Inupiat Heritage Center 5421 North Star Street Utqiagvik, AK 99723 |
| Trapper Creek Elementary School 6742 Petersville Road Trapper Creek, AK 99683 |
| Tuesday September 10, 2019 5:00–8:00 p.m. | Nuiqsut Kisik Community Center 2230 Second Avenue Nuiqsut, AK 99789 |
| Houston Fire Station 9-1 13965 W Armstrong Road Houston, AK 99694 |
| Wednesday September 11, 2019 5:00–8:00 p.m. | Tri-Valley Community Center 0.5 Mile Healy Spur Rd Healy, AK 99743 |
| Nikiski Recreation Center – Banquet Hall Mile 23.4 Kenai Spur Highway Nikiski, AK 99611 |
| Thursday September 12, 2019 5:00–8:00 p.m. | Morris Thompson Cultural and Visitor’s Center 101 Dunkel Street Fairbanks, AK 99701 |
| Dena’ina Center Khatnu 1 Room 600 West Seventh Avenue Anchorage, AK 99501 |
The Bureau of Land Management will hold public subsistence hearings and solicit public testimony in two additional potentially affected communities as a part of its consideration under Section 810(a) of the Alaska National Interest Lands Conservation Act. The Bureau of Land Management will conduct those hearings at the following locations and times:
| Date and Time (Alaska time) | Subsistence Hearing Location |
| Tuesday, September 17, 2019 6:00–9:00 pm | Anaktuvuk Pass Community Center 3031 Main Street Anaktuvuk Pass, AK 99721 |
| Thursday, September 19, 2019 6:00–9:00 pm | Kaktovik Community Center 2051 Barter Avenue Kaktovik, AK 99747 |
As a reminder, the Commission encourages electronic filing of comments and has staff available to assist you at (866) 208-3676 or FercOnlineSupport@ferc.gov. Please carefully follow these instructions for your electronic or written comments so that your comments are properly recorded.
- You can file your comments electronically using the eComment feature on the Commission’s website (ferc.gov) under the link to Documents and Filings. This is an easy method for submitting brief, text-only comments on the Project.
- You can file your comments electronically by using the eFiling feature on the Commission’s website (ferc.gov) under the link to Documents and Filings. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” If you are filing a comment on a particular project, please select “Comment on a Filing” as the filing type.
- You can file a paper copy of your comments by mailing them to the following address. Be sure to reference the Project docket number (CP17‑178-000) with your submission: Kimberly D. Bose, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC
by wp_sysadmin | Jul 25, 2019 | Home, News
Alaskan Oil Shipments to South Korea Show Growing U.S. Reach
Sheela Tobben, Bloomberg, July 24, 2019
Alaskan oil shipments to South Korea are picking up, in another sign of the growing U.S. influence on the global market. Two tankers, each able to hold a million barrels of oil, are delivering cargoes this month into Yeosu in South Korea after filling up at the Valdez terminal, the loading point for crude from Alaska’s North Slope fields. These shipments will raise the Asian nation’s intake of supply from the U.S. state to 2.75 million barrels so far this year, the most in government data going back to 1992.
China Collusion Claim Compromises Green Group
National Center for Public Policy Research, July 23, 2019
“NRDC’s opposition to America’s fossil-fuel development comports with China’s goal of hamstringing its chief global rival. The Paris Climate Agreement heavily restricted U.S. energy development, which is exactly what NRDC and Beijing want.”
With Capitol Hill still fixated on long-discredited allegations of collusion between the Trump presidential campaign and Russia, the National Center’s Bonner Cohen is focused instead on simmering allegations of collusion between a green American nonprofit and Red China. In an article written by Kevin Mooney for the Washington Free Beacon, Bonner – a senior fellow with the National Center – says that emails obtained through a Freedom of Information Act (FOIA) lawsuit indicate that the Natural Resources Defense Council (NRDC) was hard at work with the Obama Administration State Department to involve the United States in the climate change negotiations of the Paris Agreement. This seemed to lead to what Bonner says had all the “hallmarks of a treaty” without the necessary advise-and-consent involvement of the U.S. Senate.
AGDC president outlines path forward; China deal is dead
Elwood Brehmer, Alaska Journal of Commerce, July 24, 2019
Interim Alaska Gasline Development Corp. Joe Dubler insists that Alaska is still making unprecedented progress towards a long-sought natural gas pipeline project despite the fact that the lead agency on the effort is downsizing significantly. “I think we’re closer now than we’ve ever been” to making a gasline project happen, Dubler told House Resource Committee members on July 19. AGDC officials informed the Journal July 10 that the quasi-state agency would be ending its work to secure customers and investors for the roughly $40 billion Alaska LNG Project, as well as closing its public and government relations department. The remaining eight or nine employees will focus on completing the ongoing Alaska LNG environmental impact statement process the Federal Energy Regulatory Commission. FERC published the project’s nearly 3,700-page draft EIS June 28
From the Washington Examiner, Daily on Energy:
EPA PARTNERS WITH CONSERVATIVE STUDENT GROUP TO PROMOTE ENVIRONMENTAL EDUCATION: The EPA announced Wednesday that it signed a “memo of understanding” with a nonprofit conservative student group, called the American Conservation Coalition, to enhance environmental education in schools.
EPA Administrator Andrew Wheeler said the “first-time” agreement is intended to prepare students for careers in environmental fields, and to encourage young people to get involved in issues like combating marine litter, improving recycling, and reducing lead exposure.
“EPA is proud to work alongside ACC to inspire the next generation of environmental leaders and advance solutions to today’s pressing environmental challenges,” Wheeler said.
Something is missing from the syllabus: The American Conservation Coalition visited Capitol Hill this week to lobby Republicans to pursue legislation to address climate change, but Wheeler did not mention climate change as a shared challenge in his statement.
Our Take: Benji Backer, the President and founder of The American Conservation Coalition, was recently in Alaska, speaking to Alaskans about his ideas for addressing climate change without harming the economy. Go Benji!!
by wp_sysadmin | Jul 24, 2019 | Home, News
It’s back: US Interior Dept. signs new land swap deal for King Cove road
Liz Ruskin, KTOO, July 23, 2019
The U.S. Interior Department has already signed a new land swap agreement for a King Cove road, days after it gave up its appeal of a court ruling that its prior agreement violated federal law.
As with previous agreements, this one calls for the department to give land in the Izembek National Wildlife Refuge to the Native corporation in exchange for land of equal value. The intent is to allow the corporation to complete the final 12 miles of road to Cold Bay.
2. Troubles may loom for battery supply chain
Ben Geman, Axios, July 24, 2019
There could be a “supply crunch” for cobalt, lithium, and nickel used in batteries for electric vehicles and other applications as soon as the mid-2020s, the consultancy Wood Mackenzie said Wednesday.
What’s next: Wood Mackenzie forecasts that pure electrics and plug-in hybrids combined will account for 7% of all passenger car sales by 2025, 14% by 2030 and 38% by 2040.
Of note: That’s less bullish than BloombergNEF, which sees EVs accounting for 57% of passenger car sales in 2040.
The bottom line: “The electrification of transport is redefining a number of metals markets,” Wood Mackenzie said in a release summarizing their analysis.
Our take: This is an excellent wake up call to both sides of the coin. Resource development should look toward materials that will help drive our energy future, while environmental groups should allow projects to move forward without insurmountable obstacles. If done right, it’s a win for all.
House Democrats Offer an Alternative to the Green New Deal
Lisa Friedman, The New York Times, July 23, 2019
The goal, intended to slow the pace of global warming, does not include either a legislative or regulatory plan. It would very likely require rigorous new curbs on fossil fuels over the coming decades and steep increases in wind, solar and other renewable sources of power.
The initiative does not go as far as the Green New Deal. That Democratic plan calls for achieving carb
on neutrality within a decade and supplying 100 percent of the country’s electricity from clean energy sources while also creating millions of high-wage jobs.
Analysts described the announcement Tuesday as an effort by centrist Democrats to reclaim the climate agenda while treating global warming with the urgency that scientists say it demands.
Our take: We’ll defer to Representative Greg Walden of Oregon – “If we’re serious about tackling this challenge, we need to continue to offer serious, bipartisan answers that protect our economy and our environment.” There’s a balance. And if it’s not economically feasible, it likely won’t get off the ground.
Related: Republican climate hawk Francis Rooney to introduce carbon tax bill that cuts payroll taxes
U.S. Oil Inventories Fall Much More Than Expected
Dan Molinski, Wall Street Journal, July 24, 2019
Crude-oil stockpiles declined by 10.8 million barrels to 445 million barrels, and now are about 2% above the five-year average for this time of year, the EIA said. Analysts surveyed by The Wall Street Journal had predicted crude stockpiles would fall by 4.1 million barrels from the prior week.
Oil stored at Cushing, Okla., the delivery point for U.S. stocks, fell by 429,000 barrels to 50.4 million barrels, the EIA said in its weekly report.
From the Daily on Energy:
FERC TO CREATE NEW DIVISION TO HELP REVIEW LNG APPLICATIONS: FERC Chairman Neil Chatterjee announced Tuesday that the agency is creating a new division to review an increasing number of permits for liquified natural gas export projects.
The Division of LNG Facility Review & Inspection will have 20 employees based in Washington D.C, and another eight employees based in Houston — the U.S. energy hub — working out of a new regional office.
“As the demand for U.S. LNG and the number and complexity of project applications has grown, the commission has experienced a similar growth in the need for FERC to expand its oversight in this program area,” said Chatterjee, a Republican.
For years, FERC has struggled with responding to a backlog of applications by companies looking to build facilities to export natural gas abroad. The agency, however, has issued five approvals of LNG export facilities this year.
