Today’s Key Takeaways: BP looking to sell its interest in Prudhoe. Canada first LNG facility starts production. Novagold gives view of Donlin’s next phase of development.
Can “green” wind and solar trash the planet?
OIL:
BP Prudhoe Bay Royalty Trust offers overriding royalty in prolific Alaska oil field
World Oil, June 24, 2025
BP Prudhoe Bay Royalty Trust is marketing its overriding royalty interest (ORRI) in Alaska’s Prudhoe Bay field—the most prolific conventional oil field in North America—as part of a planned dissolution of the Trust. RedOaks Energy Advisors is serving as exclusive advisor on the transaction.
Discovered in 1968, Prudhoe Bay has produced more than 13 billion barrels of oil and remains a cornerstone of U.S. energy infrastructure. The field is currently operated by Hilcorp, the largest private oil and gas operator in the country, known for revitalizing mature assets and driving production growth.
The offered ORRI spans Hilcorp’s position in the field and benefits from decades of stable, high-margin production. Because the cash flow from the ORRI occurs only above a certain price for WTI, the ORRI has not resulted in a royalty payment since Q4-2022. Cash flow from the ORRI has historically been strong, supported by a low projected PDP and PUD decline rate of 2% annually over the next five years. Continued investment by Hilcorp—including five active rigs and a targeted 5% production increase in 2025—offers potential upside for buyers.
GAS:
Canada’s First Large-Scale LNG Facility Starts Production
The Maritime Executive, June 24, 2025
LNG Canada confirmed that it produced its first LNG last weekend and remains on track to begin export shipments in the coming days or weeks. It marks a major milestone for the project, which has been years in the making, and becomes Canada’s first large-scale LNG export terminal.
The project is reported to have cost as much as C$40 billion (US$29 billion) and is also the first LNG terminal in proximity to the Pacific Coast offering shorter transport distances to Asia. It is a joint venture led by Shell and includes Malaysia’s Petronas, Mitsubishi, Korea Gas, and PetroChina. The Canadian government has called it the “largest single private sector investment” in the history of Canada.
MINING:
Novagold unveils Alaska gold mine priorities in Q2 report
Resource World, June 25, 2025
Novagold Resources Inc. [NG-TSX, NYSE American] and partner Paulson Advisors LLC are looking ahead to the next phase of development at the Donlin Gold project in Alaska.
“Our near-term priorities include commencing the feasibility study update, executing the 2025 drill program now focused on converting and expanding reserves and resources, and pursuing further exploration at depth,’’ said Novagold President and CEO Greg Lang. His comments appear in the company’s second quarter report
Donlin Gold, now held 60% by Novagold and 40% by funds managed by Paulson Advisers LLC, hosts one of the world’s largest and highest grade undeveloped open pit gold endowments.
It hosts a measured and indicated resource of 541 million tonnes of grade of 2.24 g/t gold, containing 39 million ounces of the yellow metal. Those estimates are based on an updated feasibility study dated, November 2011 that was amended in January 20, 2012. They include proven reserves of 8.0 million tonnes, grading 2.52 g/t.
The planned pits in which the existing resources are situated occupy only three kilometres of an eight- kilometre mineralized belt, which itself is located on less than 5% of Donlin Gold’s land position.
Novagwold said the Donlin joint venture has launched efforts to prepare for the updated feasibility study. It said a dedicated project team will be assembled at Donlin Gold to advance this work. The contracts for this work are expected to be awarded by year-end.
Having commenced drilling in February with a total of approximately 8,401 metres, Donlin Gold plans to complete15,000 metres in a program that is now focused on resource conversion and expansion.
Meanwhile, Donlin officials have met with Alaska Congressional delegation and industry officials in Washinton, D.C. to introduce Donlin Gold’s new General Manager, Todd Dahlman, and reinforce the project’s importance to Alaska and the Yukon-Kuskokwim region.
“Our new partnership with Paulson will allow us to now advance one of the world’s known gold development projects – one that has its key permits in hand and is located in Alaska, a stable Tier One, mining-friendly jurisdiction,’’ said Lang.
Donlin Creek is expected to be an open pit operation that will rank among the world’s lowest cost gold producers with annual production of one million ounces over a projected mine life of 27 years. “No gold mine ever began production with 39 million ounces in measured and indicated resources, inclusive of proven and probable mineral reserves,” Novagold said.
POLITICS:
How “Green” Wind and Solar Could Trash the Planet
Sarah Montalbano, Energy Bad Boys, June 21, 2025
This week, Center of the American Experiment released “Shattered Green Dreams: The Environmental Costs of Wind and Solar,” which has been in the works for years — Isaac and Mitch actually worked on the earliest drafts of this report. Much ink has been spilled about the devastating impacts for the reliability and affordability of the grid that would result from going all-in on wind and solar.
This report takes a different angle: Policymakers and the public tend to treat wind, solar, and battery storage as unqualified goods for the environment and ignore the costs to our environment, wildlife, and lands. The truth is that every form of energy generation has challenges and benefits. Wind and solar are not as benign as they are made out to be, and for those who care about tangible goals — like protecting endangered and threatened species, preventing human rights abuses overseas, and preserving fertile agricultural lands — these costs should be more important than virtue-signaling one’s “eco-friendliness” with wind turbines and solar panels.
My latest research paper looks at the material demands, the environmental and worker health and safety costs of offshoring material demands, massive land use requirements, the ecological effects on wildlife, and the reasons why recycling isn’t a cure-all.
You can read the full report at https://www.americanexperiment.org/reports/shattered-green-dreams, but continue for the highlights.
The International Energy Agency expects that global net-zero would quadruple total mineral demand from 2020 levels, with demand doubling for copper, nickel, cobalt, and rare earths. Graphite demand would triple and lithium demand would increase by a factor of ten. That would need 50 more lithium mines, 60 more nickel mines, and 17 more cobalt mines — by 2030, no less. Inflation Reduction Act subsidies juiced demand for lithium (up 15 percent), nickel (up 14 percent), cobalt (up 13 percent), and copper (up 12 percent) compared to pre-IRA projections.