Today’s Key Takeaways: Governor Dunleavy wants more development projects – so do we! Escalation of ship attacks raises oil prices. Renewable natural gas from cow manure. Producers want silver listed as critical mineral in US and Canada.
NEWS OF THE DAY:
At annual legislative speech, Gov. Dunleavy calls for more Alaska development projects
James Brooks, Alaska Beacon, January 31, 2024
The state’s motto is “North to the Future,” not “No to the Future,” governor emphasizes
In his sixth annual State of the State address, Alaska Gov. Mike Dunleavy promoted development projects, called on state lawmakers to advance his legislative priorities and said the state is in danger of falling behind others in economic growth.
“Too many in this state have gotten very good at saying ‘no.’ … No to mining. No to oil and gas. No to harvesting timber. No to renewables. No to growing more food. No to trucks on roads. No to roads, period. Unless we change this attitude, North to the Future will become ‘No’ to the Future,” the governor said.
During the 50-minute speech, the governor asked legislators to pass bills related to education, agriculture, home ownership, and the supply of natural gas for Southcentral Alaska.
“We’re in competition for people, and that’s why we’re proposing policies this year to make Alaska the best place to live, have a family, and do business,” Dunleavy said.
OIL:
Oil Set for First Monthly Gain Since September on Red Sea Unrest
Julia Fanzares, Alex Longley, Bloomberg, January 31, 2024
Oil Set for First Monthly Gain Since September on Red Sea Unrest
- President Biden says he’s decided on US response to attack
- Crude inventories rose 1.23 million barrels last week: EIA
Oil headed for its first monthly gain since September as an escalation of attacks on ships in the Red Sea spurred a diversion of tanker traffic and raised fears about a wider conflict in the Middle East.
Futures are on track to climb more than 7% in January, with the increase in geopolitical tension countering demand concerns. After a drone assault that killed American troops in Jordan over the weekend, President Joe Biden said he has made a decision on how to respond, without elaborating. The US added that Iran was responsible for providing the weaponry used in the strike but Tehran has denied involvement in the deadly attack and vowed to retaliate against any US strike on its soil or assets abroad.
GAS:
A pipeline for cow gas draws environmental support, monopoly concerns
Christopher Vondracek, Walker Orenstein Star, Tribune, January 31, 2024
The PUC met at a bar in Benson, Minn., on Tuesday evening to hear citizen feedback on a plan to pump and sell biogas that could generate green energy.
While many asked questions about right-of-ways and potential natural gas hook-up to local communities down the road, some groups aired worries about how a project to convert livestock waste might super-charge a divide between small or medium-sized farmers and the state’s largest dairies.
“Is this going to improve the stench that we get on this dairy?” asked Elaine Mittenness, a neighboring farmer. “Right now, it’s impossible to have your windows open.”
Illinois-based Amp Americas is building processing facilities for what the industry calls renewable natural gas at four western Minnesota farms: Meadow Star Dairy, East Dublin Dairy, Swenoda Dairy and Louriston Dairy. Morris, Minn.-based Riverview, the largest dairy in the state, owns all of them.
Amp Americas captures methane from livestock waste and converts it for use as natural gas. From there, Dooley’s, a small company based in Willmar, plans to transport the gas to the massive Alliance Pipeline system that runs from British Columbia to Chicago. Dooley’s would build about 28 miles of pipe through three counties: Chippewa, Kandiyohi and Swift. The pipeline itself would cost about $13.9 million, mostly in construction and labor costs.
MINING:
Top producers push for silver’s inclusion as a critical mineral in Canada and the US
Bruno Vendetti, Mining.Com, January 31, 2024
Top producers of silver are pushing for the inclusion of the metal on the list of critical minerals in Canada and the US.
In a letter sent on Wednesday to the Canadian Minister of Energy and Natural Resources, Jonathan Wilkinson, CEOs of 19 miners, including top producers like Coeur Mining, Hecla Mining, and First Majestic Silver, say that considering silver a critical mineral would position the country to be a supplier of choice for strategic allies.
In December 2023, Natural Resources Canada opened a public commentary period for proposed updates to Canada’s Critical Minerals list and methodology. One of the criteria used is that the mineral must be necessary for the national transition into a “low carbon and digital economy.”
“Silver is identified as the best electrical conductor, the best metallic thermal conductor, and the best reflective material. These qualities make silver an essential and irreplaceable component for many industrial and technological applications,” the letter reads.
The demand for technologies such as solar power has led to increasing industrial demand for silver.
In 2023, global silver demand was estimated to be 1,167 million ounces (Moz), of which 576.4Moz (50%) was industrial use. Photovoltaics demanded 161.1 Moz in 2023, or 14% of the global silver demand.