NEWS OF THE DAY: ISER Economist Expresses Concern about impact of Ballot Measure 1
This week the Alaska Chamber is hosting its annual fall forum – virtually, In a session entitled “K shaped recovery – a national and local economic outlook”, UAA Institute of Social and Economic Research economist Mouchine Guettabi was asked about the impacts of Ballot Measure 1 on Alaska’s economy.
His response: “In the midst of a global pandemic and a severe economic shock…I’d rather see no spending cuts, no taxes on anybody. Removing any money from the economy can have even more damage. I think it’s a challenging time to be thinking about taxes in general. The state finds itself in a precarious place, trying to figure out what to do. The State knows its’ going to get some money , we know that there will be some decline in activity and that this may dissuade future exploration and future investment, so the question is how do you do that math and when is the right time to do it and as I’ve said in the midst of a recession it’s challenging to remove that money from the economy right now. “
The 2020 Fall Forum continues tomorrow and will include an Oil & Gas presentation with Joe Marushack of ConocoPhillips and Dave Wilkins from Hilcorp. Anyone can sign up for the event here.
From the Washington Examiner, Daily on Energy:
US OIL DEMAND INCHES UP: U.S. oil demand rose last week to 18.4 million barrels per day compared to 17 million b/d the week prior, the EIA reported Wednesday in its Weekly Petroleum Status report.
Gasoline demand rose week-on-week but is still down about 9% from the same period last year. Jet fuel consumption continues to lag, sitting about 45% below last year’s mark.
EIA also reported a 1.6-million-barrel decrease in commercial crude inventories; an easing of the market glut that helped oil prices slightly rise this morning (but still hovering in the low $40s per barrel).
The future of liquefied natural gas: Opportunities for growth
Giorgio Bresciani, Sven Heiligtag, Peter Lambert,Matt Rogers, McKinsey & Company, September 21, 2020
The COVID-19 pandemic has accelerated LNG market trends that were already underway. LNG players must pursue improvement in five areas to adapt to new conditions and seize opportunities for growth.
The liquefied natural gas (LNG) industry is experiencing low prices and oversupply. Even before the COVID-19 pandemic, the LNG market was set for oversupply in 2020 and 2021 as new projects continued to grow capacity well beyond steady demand growth. Reduced gas demand because of the pandemic has added to excess supply, creating market volatility. And a sustained period of lower oil prices and increased competition among gas supply sources as new supply reaches the market have combined to erode margins, putting pressure on gas and LNG producers.
The long-term outlook for LNG, however, is brighter than that of other fossil fuels because of its comparatively lower cost and lower emissions from production and combustion. But to find a true competitive advantage amid a volatile market, the LNG industry must move beyond what were once winning strategies (control of gas resources, reliability of supply). Instead, LNG players should focus their efforts in five areas: capital efficiency, supply-chain optimization, downstream market development, decarbonization, and digital and advanced analytics. If done successfully, LNG could ride out an unpredictable market and find opportunities for faster growth.
Drill discovers Pogo-like vein at 64North
Shane Lasley, North of 60 Mining News, September 18, 2020
Resolution Minerals Ltd. Sept. 17 reported that the seventh hole of the 2020 season at 64North project has tapped a seven-meter-thick quartz vein at Aurora indicative of the Pogo-style gold mineralization being sought. Bordering Northern Star Resources Ltd.’s Pogo gold mine property, the roughly 160,000-acre 64North project includes nine claim blocks – West Pogo, Shaw, Eagle, LMS-X, South Pogo, East Pogo, North Pogo, Last Chance and Divide. Under a deal cut with Millrock Resources Inc. last year, Resolution has the option to earn a 60% interest in this large gold project by investing US$20 million in exploration spending over four years.
It’s Not About Climate Change
David Kreutzer, Real Clear Energy, September 23, 2020
Two years ago, the non-partisan Legislative Analyst’s Office of the California Legislature warned:
A combination of factors have resulted in poor conditions across these forests and watersheds, including excessive vegetation density and an overabundance of small trees and brush. Such conditions have contributed to more prevalent and severe wildfires and unprecedented tree mortality in recent years, and experts are concerned these trends will continue if steps are not taken to significantly improve the health of the state’s forests.