OIL
What makes Alaska’s oil industry unique?
Darren Prokop, American Shipper, August 31, 2020
Two words: logistics and politics. These make Alaska’s oil industry unique. It is the longest domestic supply chain in the industry. Alaska’s North Slope is the nation’s most remote and coldest source of crude oil. This environment requires customized equipment able to handle months of subzero temperatures. Logistics is critical to keeping the oil flowing. But politics is critical too. Since Alaska’s government is cash-strapped right now due to low oil prices — and its dependency on the oil industry for 90% of its tax revenue — politicians watch the North Slope very carefully. Since practically all the land in the North Slope is owned by either the federal or state government, the oil companies must devote time and money to acquire leases and pay taxes on production. In Alaska, oil and politics are hard to separate.
GAS
Baker Hughes Announces Major LNG Turbomachinery Order from Qatar Petroleum
Africa News, September 29, 2020
Baker Hughes (NYSE: BKR) (www.BakerHughes.com) announced an order with longtime partner Qatar Petroleum to supply multiple main refrigerant compressors (MRCs) for Qatar Petroleum’s North Field East (NFE) project, executed by Qatargas. The total award is part of four LNG “mega trains,” representing 33 million tons per annum (MTPA) of additional capacity, which will increase Qatar’s total liquefied natural gas (LNG) production capacity from 77 MTPA to 110 MTPA and help to propel the Gulf nation to global LNG production leadership by 2025. This order is among the largest LNG deals secured by Baker Hughes in the past five years, for both MTPA and equipment awarded.
The order reinforces more than two decades of trust and successful turbomachinery collaboration between Baker Hughes, Qatar Petroleum and Qatargas. With Qatargas already operating six existing LNG “mega trains” driven by Frame 9E gas turbine refrigerant compressors provided by Baker Hughes, the NFE project underscores the leadership of Baker Hughes LNG technology in the Gulf region and for the world’s most complex LNG projects.
MINING
Nunavut government may support TMAC-SD Gold sale, but with conditions
Jane George, Nunatsiaq News, September 28, 2020
The Nunavut government has made a submission to federal reviewers now looking at the proposed sale of TMAC Resources Inc. to the Chinese-owned Shandong Gold Mining Co. Ltd. But, speaking on last week in the Nunavut legislature, Economic Development Minister David Akeeagok would not say whether the Government of Nunavut supported the proposed sale in its submission to the federal reviewers. In response to questions from Gjoa Haven MLA Tony Akoak, he said he did not want to comment more because the federal government is still in the middle of its review process. But Akeeagok did say any GN support would be contingent on SD Gold honoring the terms and conditions that are part of the previous environmental reviews and agreements with Inuit on jobs, training and other benefits.
POLITICS
From the Washington Examiner, Daily on Energy:
API’S DEBATE MESSAGE: The American Petroleum Institute will be running a pair of ads during debate coverage Tuesday night as part of its ongoing multimillion-dollar “Energy for Progress” campaign aiming to sell the oil and gas industry as committed to combating climate change.
The ads, titled Solving Big Challenges Requires Energy and How America Is Leading The Way, call for “common ground in the energy debate in 2020 and beyond.”