Today’s Key Takeaways: Can Biden’ offshore oil and gas ban be undone? Alaska oil production primed for a rebound! Dunleavy press conference on Alaska’s Energy Future. Permit for antimony-gold mine issued…after 8-year review process.
NEWS OF THE DAY:
Biden to ban offshore oil, gas drilling in vast areas ahead of Trump term
Reuters, January 6, 2025
- Biden says ban aligns with climate change, conservation agenda
- Ban affects 625 million acres of ocean
- Industry group urges Congress to reverse decision
Jan 6 (Reuters) – U.S. President Joe Biden will ban new offshore oil and gas development along most U.S. coastlines, a decision President-elect Donald Trump, who has vowed to boost domestic energy production, may find difficult to reverse.
The move is considered mostly symbolic, as it will not impact areas where oil and gas development is currently underway, and mainly covers zones where drillers have no important prospects, including in the Atlantic and Pacific oceans.
Of Note: A federal judge ruled against Trump when he tried to reverse an action by President Obama on over 125 million acres, ruling only Congress could overrule the action. Since so much taxpayer revenue is at stake, congressional action to reopen many areas could take place in the upcoming Budget Reconciliation Bill, which is expected to be considered early this year, fulfilling the judge’s edict.
OIL:
Holding Out for a Hero – After a Long Slide, Alaska’s Crude Oil Production Appears Primed for Rebound
Lisa Shidler, RBN Energy, January 6, 2025
Alaska North Slope (ANS) crude oil production has been sliding for years — decades really — but that is poised to change in the second half of the 2020s. Two long-planned ANS projects — Pikka and Willow — are slated to start up in 2026 and 2029, respectively. By the early 2030s, these and other projects in the works could return North Slope production to levels not seen since the turn of the century. In today’s RBN blog, we’ll discuss these projects and our new, long-term forecast for ANS oil production — a topic in our upcoming Future of Fuels report.
Let’s start with the main source of Alaska’s crude oil production: Prudhoe Bay on Alaska’s North Slope. As we discussed in Keep Holding On, more than a half-century ago the 49th state was seen as the next big thing for U.S. oil. Massive oil deposits were discovered at Prudhoe Bay in the late 1960s –– and that promise soon became reality. With the completion of the 800-mile Trans-Alaska Pipeline System (TAPS) from Prudhoe Bay to Valdez, AK, in 1977, ANS production took off like a rocket and by 1988 it exceeded 2 MMb/d. Not only did Alaska account for one-quarter of total U.S. crude oil output that year, it also briefly knocked Texas off its perch as the #1 oil-producing state.
Alaskan oil didn’t give the U.S. “energy independence” -– a rallying cry in the Ford, Carter and Reagan years –– but it helped. The physical characteristics of the North Slope’s medium sour-ish crude, with a 31.5 API gravity and about 1% sulfur (generally the cutoff we use to differentiate sweet and sour crude), were (and are) a plus. West Coast refineries were configured to run it, and the crude was — and is — very marketable in Asia too.
GAS:
| Governor Dunleavy to Host Press Conference Today on Alaska’s Energy Future with Industry Experts |
The future of energy in Alaska, Monday, January 6, at 1:00pm. Streamed live on Governor Dunleavy’s Facebook page
| Governor Mike Dunleavy will hold a press conference to discuss the future of energy in Alaska, highlighting the state’s ongoing efforts to address energy challenges and opportunities. The event will feature insights from leading subject matter experts who will join the Governor to provide a comprehensive overview of initiatives aimed at ensuring sustainable, affordable, and reliable energy for all Alaskans. WHO: Governor Mike Dunleavy, DNR Commissioner John Boyle, AEA Executive Director Curtis Thayer, AIDEA Executive Director Randy Ruaro, AGDC President Frank Richards, ENSTAR President John Sims |
MINING:
Biden officials issue permit for Perpetua’s Idaho antimony-gold mine
Reuters/Mining.Com, January 3, 2205
The Biden administration on Friday issued the final mining permit for Perpetua Resources’ Idaho antimony and gold project, a move aimed at spurring US production of a critical mineral at the center of a widening trade war between Washington and Beijing.
Permitting for the mine, backed by billionaire investor John Paulson, comes after Beijing last month blocked exports to the US of antimony, a metal used to make weapons, solar panels, flame retardants and other goods for which there are no current American sources.
The US Forest Service released the final record of decision for Perpetua’s Stibnite project – essentially the mine’s permit – after an eight-year review process, according to documents published on the agency’s website.
Shares of Boise, Idaho-based Perpetua gained 9.1% in after-hours trading after Reuters reported the permit decision earlier on Friday.
Perpetua’s mine will supply more than 35% of America’s annual antimony needs once it opens by 2028 and produce 450,000 ounces of gold each year, a dual revenue stream expected to keep the project financially afloat regardless of any steps Beijing may take to sway markets.