11-4-16 Alaska Headlamp, Craig Medred, & Must Read Blogs Also Shed Light On Energy Issues

Stark warning for Canada – TransCanada sells U.S. assets to pay for Columbia Pipeline – A transition ahead for US Arctic – Progress slow for IEP – When it comes to Alaska LNG project, the big elephant in the room is cost – Inter Pipeline expects decision on petrochemical plants

Medrid Today: It’s hard to make multi-million dollar business decisions in an unstable economic environment, and there is no doubt that Alaska’s constantly shifting tax structure – particularly its desire to squeeze another dollar out of the golden goose of oil any time a budget problem arises – makes for an unstable economic environment.

Ak-Headlamp knows — as we do — that Alaska’s fiscal crisis is related to oil & gas industry policies and an undisciplined spending poliicy. -dh

Banana peels and billions of barrels.

Forbes recently featured Caelus CEO Jim Musselman and discussed his company’s recent find in Smith Bay. On his 2-billion-barrel discovery, “That [strike is] just the start,” says Musselman, “There’s so much oil yet to be found.” The feature also highlights the difficult regulatory and fiscal environment Alaskan producers continue to face – specifically, grievances with Governor Walker. “What the governor has done is the opposite of what Alaska needs,” says Dave Harbour, former chairman of the state regulatory commission. “Why would anyone invest in a state that has one foot over the edge of a precipice and the other standing on a banana peel? What we need to show investors is that in Alaska a deal is a deal.” Headlamp applauds Mr. Harbour for clearly stating the issue – and Mr. Musselman for pointing out that more oil can help the state solve its fiscal problems – long term.

“We can help the state of Alaska solve its fiscal problem for the next three or four generations, if they’ll let us.” Musselman says to Walker: “Don’t spook the money. If you spook the money, they stay spooked.”

More from Ak-Headlamp

According to the Alaska Journal of Commerce, the Alaska Gasline Development Corporation is finishing up its negotiations to take over the leadership role on the gasline megaproject, negotiating the transition of project assets from the three producer partners, ExxonMobil, ConocoPhillips and BP. The state-owned corporation is now examining different options for project structure before filing its final application to FERC and is trying to market North Slope gas to worldwide markets, most aggressively in Asia. “There are a lot of other projects chasing that gap, so we’ve got to be competitive,” Alaska LNG Project Vice President Fritz Krusen said. “Second of all … it takes years and years to get there. We have to make a decision to move, to catch that window, fairly soon.” The difference between a valid pipeline project and a pipedream is a fine line – and Alaska shouldn’t proceed with spending hundreds of millions of dollars on a project that is most likely to fail.

Ak-Headlamp…The latest pipedream commentary

About the Author: wpnorthern

Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska, a Commissioner Emeritus of NARUC, NARUC's Official Representative to IOGCC and Vice Chairman of NARUC's Gas Committee. He served as Gas Committee Chairman of the Western Conference of Public Service Commissioners. He also served as commissioner of the Anchorage Bicentennial Commission and the Anchorage Heritage Land Bank Commission. He earned a Bachelor of Arts Degree: English, at Colorado State University, a Master of Science Degree: Communications-Journalism at Murray State University and graduated from Utility Regulatory School for Commissioners at Michigan State University. He served as a Vice President for Communications and Public Affairs at Alaska Pacific University, taught bank marketing classes at the University of Alaska and was an English teacher at Los Alamos High School. Harbour served in ranks of Private - Captain during a 4-year assignment with the Army in Korea, Idaho, Georgia and Fort Meade and received the Meritorious Service Medal among other commendations. Harbour is also a past Chairman of the Alaska Council on Economic Education, the Alaska Oil & Gas Association Government Affairs Committee, the Anchorage Chamber of Commerce, the Export Council of Alaska and the Department of Commerce's District Export Council. He is a past President of the Alaska Press Club, American Bald Eagle Foundation, Consumer Energy Alliance-Alaska and Common Sense for Alaska. Harbour was instrumental in founding the American Bald Eagle Research Institute (UAS), the Alaska Support Industry Alliance, the Downtown Anchorage Business Partnership, and Arctic Power. He also served as CEO of several small Alaska organizations, including the Anchorage Parking Authority and Action Security, Inc. Harbour is also Chairman Emeritus of the Alaska Oil & Gas Congress. Harbour's wife, Nancy, is a professional, performing arts administrator and his three boys, Todd, Benjamin and William work in the fields of environmental management, energy marketing and medicine.