COVID 19 Update:
U.S. oil and gas industry sees no supply chain threat from coronavirus: API
Reuters, March 18, 2020
The American Petroleum Institute oil and gas industry group said on Wednesday that it does not see a significant threat to the U.S. energy supply chain from the coronavirus pandemic. Oil and gas companies are implementing contingency plans focused on ensuring continuity of supplies to market and preventing the spread of the virus to workers and the public, Suzanne Lemieux, API’s head of operations security, told reporters in a conference call with representatives of several energy industry trade groups. “The supply chain is operating as normal now and you’re going to see that continuing unless there is any additional … shelter-in-place restrictions or larger outbreaks,” Lemieux said. “This is not a new planning scenario for a lot of our member companies, but we are trying to be as cautious as possible,” she said, adding that many of its members have dealt with previous outbreaks such as Ebola, SARS and H1N1.
Alaska producers announce cutbacks, delay drilling
S & P Global Platts, March 18, 2020
Alaska North Slope operators have announced spending cuts and delayed drilling as turmoil continued in world crude oil markets. ConocoPhillips will curtail 2020 Alaska capital spending by $200 million and delay development drilling in the Kuparuk River and Alpine fields. The action will result in two drill rigs being laid off. Oil Search Alaska, a Papua, New Guinea company engaged in developing Pikka, a new discovery, along with its partner Repsol, will delay work on an early Pikka production project although work on gravel roads and pads for the project that are now underway will continue.
Canada Lays Off 750 Workers Amid Coronavirus Crisis
OILPRICE.COM, March 19, 2020
LNG Canada has laid off 750 people as a preventive measure against the Covid-19 pandemic before it reaches the construction site of the liquefaction facility. CBC reports the company had flown the laid-off workers to their homes out of an “abundance of caution”, according to LNG Canada’s director of corporate affairs. The move, however, might delay the work on Canada’s first LNG project that got not only the approval of the provincial and the federal governments but also a final investment decision. LNG Canada is a project of Shell, with a 40-percent stake, Malaysia’s Petronas with 25 percent, PetroChina with 15 percent, Mitsubishi with 15 percent, and South Korea’s Kogas with 5 percent.
required for Red Dog workers
Shane Lasley, North of 60 Mining News, March 17, 2020
Teck Resources Ltd. March 16 said it has initiated measures to slow the spread of COVID-19 that include remote work, travel restrictions and other protocols. These protocols include pre-flight virus screenings for all personnel travelling to its Red Dog zinc mine in Northwestern Alaska. “Teck is working diligently to closely monitor the recommendations of health officials and update all employees at Red Dog on information and current best practices for prevention of COVID-19,” the company said. Due to Red Dog’s remote location, a camp houses roughly 600 employees and contractors who work on a rotational schedule. To help prevent COVID-19 from getting into camp, which could create both health and production problems at the northern zinc project.
House Republicans block funding for big spending bill that includes coronavirus
James Brooks, Anchorage Daily News, March 18, 2020
Republican members of the Alaska House of Representatives blocked complete funding for a $360 million supplemental budget bill containing $23.5 million in coronavirus response funding Wednesday night. The Senate had approved the bill earlier in the day, but in a 28-10 vote, the House failed to reach the 30-vote threshold needed to spend from savings and fully fund the bill. Because of the failed vote, only about $246 million is available to pay for the bill.