oil production war threatens to impact state revenues
Matt Leseman, KTUU, March 8, 2020
Alaska is caught in the crossfire of an oil production war between Russia and Saudi Arabia. “Friday, oil prices dropped almost 10%, in just one day,” said Oil and Gas Analyst Larry Persily. As of Sunday, the price of Arctic North Slope crude, was still $49.48 per barrel, but futures trading suggests prices will continue to fall on Monday. As of 6:12 p.m. Alaskan time on Sunday, the price of Brent Crude, the international standard, was $34.19 per barrel. In December, the Department of Revenue predicted a $200 million drop in revenues due to lower-than-expected oil revenues. That was when ANS was predicted to cost $63.54 per barrel.
Saudis Start All Out Oil War With Dramatic Price Cut
Russia Can Live With $25 Oil For Years
Regulators issue final Alaska LNG Project impact statement
Associated Press, March 8, 2020
A federal commission has issued the final environmental impact statement for the $40 billion Alaska LNG Project. The Federal Energy Regulatory Commission released the document Friday that largely affirmed the plan proposed by the state-owned Alaska Gasline Development Corp., The Alaska Journal of Commerce reported. The final environmental impact statement, which includes more than 150,000 pages of data, supported AGDC’s conclusion that the project should terminate in Nikiski.
What does this mean? According to Larry Persily in today’s Oil and gas news briefs, the next step would be a commission vote on the Alaska LNG application. “ Under FERC rules, commissioners could vote in early June on the Alaska application to build and operate the project. The FERC order, if approved, would set a deadline to start work in several years, though the state could later request an extension.”
Who’s Backing Coal as Some of the World’s Biggest Banks Get Out
Emily Cadman, Bloomberg, March 8, 2020
Moves by some of the world’s biggest banks to end coal financing for the sake of the planet was supposed to create major headaches for companies like Whitehaven Coal Ltd. Yet there was the Australian miner on a conference call last month announcing the refinancing and extension of a A$1 billion ($650 million) credit line, backed mostly by Chinese and Japanese lenders. “Our banking relationships are strong, we are really well supported,” Chief Financial Officer Kevin Ball said. “That might come as a little bit of a surprise to people who aren’t familiar with coal.”
over taxes influenced decision to sell, BP VP said
Tim Bradner for the Frontiersman, March 4, 2020
BP’s decision to sell its Alaska assets to Houston-based independent Hilcorp Energy was motivated by continued uncertainty over state taxes along with high costs of operating the aging Prudhoe Bay field. “There’s no question that the ongoing debate over (oil production) taxes in Alaska influenced our decision,” Damien Bilbao, BP’s Alaska vice president for commercial ventures, told state legislators in Juneau in a briefing.