Today’s Key Takeaways: New National Energy Council to promote U.S. energy dominance. AK political leaders look to Trump to remove barriers for oil drilling in Alaska. Americans voted to protect natural gas. American Pacific receives $10m for it’s Palmer project in Alaska. U.S. Supreme Court leaves Alaska campaign reporting requirements in place.
NEWS OF THE DAY:
‘Drill, drill, drill’: New energy council signals Trump to prioritize energy production
Jacob Fischler, Alaska Beacon, November 18, 2024
President-elect Donald Trump’s announcement Friday afternoon that his pick for Interior secretary, North Dakota Gov. Doug Burgum, would also coordinate a new council on energy policy is a sign the incoming administration will make energy production a core part of its domestic policy.
Few details of the new National Energy Council were available Friday, as activists and lawmakers processed the surprise 4 p.m. Eastern announcement. But the move likely reflects a focus by Trump and his next administration on energy production, including fossil fuels.
“They’re signaling ahead of time that this is one of their priority areas,” Frank Maisano, a senior principal at the energy-focused law and lobbyist firm Bracewell LLP, said in an interview.
Burgum “will be joining my Administration as both Secretary of the Interior and, as Chairman of the newly formed, and very important, National Energy Council, which will consist of all Departments and Agencies involved in the permitting, production, generation, distribution, regulation, transportation, of ALL forms of American Energy,” a written statement from Trump said.
“This Council will oversee the path to U.S. ENERGY DOMINANCE by cutting red tape, enhancing private sector investments across all sectors of the Economy, and by focusing on INNOVATION over longstanding, but totally unnecessary, regulation.”
Trump said the council’s objective to increase U.S. energy supply would benefit the domestic economy and allies overseas and help power “A.I. superiority.”
“The National Energy Council will foster an unprecedented level of coordination among federal agencies to advance American energy,” Burgum said in a written statement. “By establishing U.S. energy dominance, we can jumpstart our economy, drive down costs for consumers and generate billions in revenue to help reduce our deficit.”
OIL:
Alaska political leaders hope to see Trump undo restrictions on oil drilling
Becky Bohrer, Associated Press, November 16, 2024
President-elect Donald Trump promised repeatedly during his campaign to expand oil drilling in the U.S., which is good news for political leaders in Alaska, where oil is the economic lifeblood and many felt the Biden administration has obstructed efforts to boost the state’s diminished production.
On Saturday, Trump named Chris Wright — a campaign donor, fossil fuel executive and vocal advocate of oil and gas development — to serve as energy secretary in his second administration.
The question of drilling on the refuge’s coastal plain, as Trump sought to do during his first term, also divides Alaska Native communities. Some welcome the potential new revenue while others worry about how it will impact wildlife in an area they consider sacred.
GAS:
API | Americans Also Voted to Protect Access to Natural Gas
Mark Green, American Petroleum Institute, November 14, 2024
Under-noticed after last week’s election were a couple of clear signs that, even in the bluest of states, Americans don’t take kindly to government trying to mandate and restrict their energy choices.
In Washington state, voters passed Initiative 2066, requiring the state’s utilities to provide natural gas service to any person or business requesting it.
Meanwhile, voters in Berkeley, California – the first U.S. city to try to ban natural gas altogether – rejected a proposed tax on using natural gas in new buildings. The measure was seen as a way to discourage natural gas use in new buildings after a 2019 ban passed by the city council was struck down by a federal court.
Both results align with trends seen in the presidential election. In Michigan, the Biden administration’s rules, effectively pushing Americans toward buying electric vehicles, was an important issue. In Pennsylvania, 62% of those participating in exit interviews said hydraulic fracturing, or “fracking,” was a key factor in their vote.
Washington’s Initiative 2066 also bans the state’s Utility and Trade Commission from approving multi-year rate plans that require or incentivize terminating natural gas service.
Brian Heywood, founder of Let’s Go Washington, which led the fight for approving Initiative 2066:
“We fought for Washington’s rural communities that couldn’t survive the freezing winters and grid blackouts without natural gas. We fought for small businesses who could not afford to retrofit their buildings to electric. We fought for Washingtonians tired of being forced to comply with policies that make their lives more difficult from a legislature that has proven they aren’t listening to citizens.”
The initiative also prevents state and local governments and their agencies from banning, restricting, or discouraging natural gas appliances in homes and businesses, like restaurants.
Berkeley’s proposed natural gas tax received less than one-third of the vote last week. Opponents said businesses and nonprofits would be harmed. Beth Roessner, Berkeley Chamber of Commerce CEO:
MINING:
American Pacific Receives US$10 Million and 100% Interest in the Palmer VMS Project in Alaska
Newsfile, November 18, 2024
Vancouver, British Columbia–(Newsfile Corp. – November 18, 2024) – American Pacific Mining Corp. (CSE: USGD) (FSE: 1QC) (OTCQX: USGDF) (“American Pacific” or the “Company“) announced today that it has entered into an agreement (the “Purchase Agreement“) with Constantine North Inc. (“CNI“) and Dowa Metals & Mining Alaska Ltd. (“Dowa“) to acquire Dowa’s interest in Constantine Mining LLC (the “Dowa Interest“), the holder of the Palmer VMS Project (“Palmer” or the “Project“). Pursuant to the terms of the Purchase Agreement executed November 15th, 2024, CNI, a wholly-owned subsidiary of American Pacific, will acquire the Dowa Interest from Dowa and Dowa will pay US$10,000,000 to American Pacific in exchange for providing Dowa with an option to acquire up to 50% of the zinc concentrate produced at the Project for the initial year of production and each subsequent year of production at the Project and the provision of certain indemnities in the Purchase Agreement. The completion of the transactions contemplated by the Purchase Agreement are subject to customary conditions precedent in favour of American Pacific, CNI and Dowa. Following the acquisition of the Dowa Interest, American Pacific will have consolidated a 100%-interest in the Project.
American Pacific would like to thank Dowa for its collaborative approach to work at Palmer over the years. Given the differing corporate priorities of Dowa and American Pacific, the Company is pleased to have regained 100%-ownership and control of Palmer.
Warwick Smith, American Pacific’s Chief Executive Officer stated:
“This is a transformative transaction for American Pacific. American Pacific receives a significant injection of capital and 100%-control of a Project that has an established mineral resource with significant exploration upside throughout the district.”
“An updated mineral resource estimate (MRE) is underway, and this transition consolidates ownership and provides a clear path forward with a renewed focus on advanced exploration and resource expansion, which we believe will create significant value for a Project that currently includes a small fraction of the known VMS showings in the current MRE.”
Following the closing, American Pacific is expected to have more than CDN$16 million in cash and two 100%-controlled flagship assets in the Madison Project in Montana and Palmer in Alaska. The transaction is expected to close during the fourth quarter of 2024.
POLITICS:
U.S. Supreme Court leaves in place Alaska campaign disclosure rules voters approved in 2020
Associated Press, November 18, 2024
The U.S. Supreme Court on Monday left in place disclosure rules for campaign contributions that Alaska voters approved in a 2020 ballot measure.
The justices did not comment in rejecting arguments from donors who challenged as unconstitutional the disclaimers that are required for ads and the reporting required for contributions greater than $2,000 that are given to or received by third-party groups.
Lower courts also had allowed the rules to remain in place. They were part of a ballot measure that overhauled Alaska’s elections system and was passed by voters in 2020. Provisions of the measure calling for open primaries and ranked choice voting in general elections were challenged previously in state courts and upheld.