Today’s Key Takeaways: House reconciliation bill good for Alaska. LNG In, LNG Out? US and Saudia Arabia to sign mining deal. Democrats strategy on reconciliation – make it painful as possible to pass.
OIL:
Budget reconciliation bill clears a path for Alaska drilling, mining
Liz Ruskin, Alaska Public Media, May 5, 2025
Republicans in the U.S. House are trying to clear hurdles for Alaska oil drilling and mining witha budget reconciliation bill that’s written to thwart environmental lawsuits.
The bill, for instance, mandates four new lease sales in the Arctic National Wildlife Refuge, under terms the first Trump administration decided on. Only this time, if the bill passes as proposed, the law would declare that the leases comply with a raft of environmental laws and no one but the State of Alaska or the leaseholder could go to court.
The House Natural Resources Committee takes up the Alaska drilling sections of the bill Tuesday.
The committee is working on its part of the Republican budget reconciliation measure, or as President Trump calls it, “one big, beautiful bill.” The sweeping legislation includes much of his agenda, including tax cuts and immigration enforcement, as well as rolling back environmental rules in Alaska and around the country.
U.S. Sen. Dan Sullivan told Alaska business and industry representatives last week that, with Republicans controlling the White House and Congress, Alaska stands to benefit.
“We have probably the biggest opportunities to make huge advances for our state, maybe in the history of our state,” he said, as recorded by his office.
Among the Alaska provisions in the reconciliation bill is the removal of environmental restrictions that the Biden administration imposed in the National Petroleum Reserve Alaska. The bill also mandates approval of the Ambler Road corridor, across federal land in Northwest Alaska. And it requires at least six petroleum lease sales in Cook Inlet.
GAS:
LNG In, LNG Out: The Race to Import and/or Export Alaska Natural Gas
Terri Marshall, Alaska Business, May 5, 2025
Like a cat hesitating at the front door, there are plans in the works for liquified natural gas (LNG) to both come in and head out of the 49th State. Exporting gas from the North Slope has been on the drawing board since before the Trans Alaska Pipeline System started carrying oil, and Cook Inlet gas sailed overseas starting in 1969 from the Kenai LNG terminal, one of the first of its kind in the country. Those shipments to Japan halted in 2015 when local demand for the resource impinged on the inlet’s supply.
Importing LNG to Cook Inlet is the fastest way to satisfy Southcentral energy demand, yet development continues on the Alaska LNG pipeline from the North Slope, with an eye toward exports. Fortunately, local demand could make the case for export infrastructure in the long term.
MINING:
Saudi Arabia and US to sign mining deal
Mining.Com, May 6, 2025
The Kingdom of Saudi Arabia said on Tuesday that it is set to discuss and sign a mining cooperation agreement with the United States.
According to Saudi’s state news agency, the cabinet let by Prince Mohammed bin Salman has authorized the Minister of Industry and Mineral Resources (or an appointed deputy) to engage with US officials on a draft memorandum of cooperation.
The deal, which will focus on collaboration in mining and mineral resources, is expected to be signed with the US Department of Energy, the cabinet’s statement reads.
This move comes as Saudi Arabia accelerates its drive to become a global hub for battery and electric vehicle manufacturing. The Kingdom is investing heavily in mining and industrial development as part of its broader strategy to diversify the economy away from oil dependence under Vision 2030.
Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef has outlined plans to import raw materials and manufacture batteries using a mix of local and imported metals.
In parallel, Saudi Arabia is seeking to expand its footprint in international mining markets. In January, Saudi officials and Chile’s state-owned miner Codelco began early-stage discussions on potential joint investments in the copper sector. Saudi Arabia is also exploring lithium imports from Chile for domestic processing.
POLITICS:
HOUSE NATURAL RESOURCES COMMITTEE RECONCILIATION MARKUP: The House Natural Resources Committee is marking up its part of the GOP reconciliation legislative package, which is meant to cut billions in federal spending.
The committee’s bill includes provisions that would require quarterly onshore oil and gas lease sales, incentivize energy development on the Coastal Plain of Alaska, require annual coal lease sales, and allow fossil fuel companies to pay a fee to streamline the permitting process.
Without the majority, Democrats have little chance of blocking the entire package and have moved to draw out debate as long as they can. Democrats on the committee have moved to introduce 121 amendments to the proposal, which they argue is an attack on the environment and favors fossil fuel companies.
“It would take away rights to review what is happening on sensitive public lands, and it is based on a completely false premise that will undermine the protection of our economy, the American people, our communities and the environment,” said Democratic New Mexico Rep. Melanie Stansbury. “And that is why we are prepared to sit here all day and fight this bill, because it is complete BS.”
Bueller? Bueller? After opening statements, House Republicans were relatively silent throughout the first few hours of the hearing – much to the ire of their Democratic colleagues. Ranking member Jared Huffman of California repeatedly called out the Republican members for choosing not to debate over the amendments as he introduced them. At one point, Huffman called a vote to adjourn the mark-up meeting – which failed – and explained after that he called it in order to bring the Republicans back into the room for debate. After the vote, several Republicans once again left the hearing room.
Other Democrats, including Colorado Rep. Joe Neguse and Rhode Island Rep. Seth Magaziner, also took time to lambast Republicans for failing to engage in any debate. “I’m beginning to think the Rs across the table from us are not Republicans but robots,” Magaziner said, and later quoted “Ferris Bueller’s Day Off,” saying, “Bueller?” The Democrat also accused Republican leaders of ordering the committee members to not engage in debate.
“What does your own leadership think of you if they don’t trust you to speak?” Magaziner asked.
The package’s markup was expected to last well into the evening and could very well trickle into tomorrow.
From the Washington Examiner, Daily on Energy, May 6, 2025