Companies commit millions to secure exploration licenses despite concerns over pipeline prospects

Thandiwe Vela
Northern News Services
Published Friday, July 8, 2011

NWT – The recent call for bids on Northwest Territories land parcels has ended with oil and gas companies committing more than $500 million to secure exploration licenses in the Central Mackenzie Valley.  … "We are pleased with the bidding results," Minister of Industry, Tourism and Investment Bob McLeod (NGP Photo) said, adding the high value of bids shows the industry’s renewed confidence in the NWT oil and gas reserves. "These are some of the best parcels of land in the territory so I can see why there was so much interest."
Canada urgently needs a National Energy Strategy (NES) to secure future oil and natural gas markets and serve as a stepping stone to a North American policy, said Alberta Energy Minister Ron Liepert (NGP Photo).
 

THOUSANDS OF CONSUMERS SUPPORT ARCTIC DEVELOPMENT: CEA RELEASE

Our editorial yesterday was used as an Op-Ed on the International blog, MasterResource, and linked to Energy & Environment News.

See the great cartoon re: gas prices and Alaska, thanks to reader Rocky Dipple.     -dh

Two Items regarding the Federal Government:

1.  Please take time now to comment during the next two, impending public comment periods:   This coming Friday, July 15, comes the next deadline for comments about an Environmental Assessment regarding Beaufort Sea OCS development.  Then, lock and load for the next wave of regulatory onslaught: the July 25th deadline public comment on Revised Beaufort Sea Exploration Plan (EP) and associated Oil Discharge Prevention and Contingency Plan (ODPCP)

2.  Yesterday completed the BOEMRE’s comment period on the Supplemental Impact Statement they have released re: Chuckchi Sea…

  • Robert Dillon alerts us that U.S.Lisa Murkowski by Dave Harbour, Arctic Energy Policy Sen. Lisa Murkowski (NGP Photo), R-Alaska, spoke about the important contribution Alaska’s Arctic could make to the nation’s energy security and economic recovery during a speech Tuesday at the Center for Strategic and International Studies.  The full text of Sen. Murkowski’s speech is attached and video of her speech at CSIS is available at: http://www.ustream.tv/recorded/15950023. Her comments begin at the 19-minute mark. 
  • WJS.  Will the Obama Administration cut off a nose to spite a face and refuse Canadian oil?
  • California Air Resource Board announced that it is delaying the start of the state’s cap and trade program until 2013, a year later than was originally envisioned.
  •  Julie Hasqet today informs us of Senator Mark Begich’s (NGP Photo)Senator Mark Begich by Dave Harbour response to President Barak Obama’s "Alaska Energy Coordination Executive Order".  “Today’s announcement recognizes the importance of Alaska’s oil and gas to our nation’s economic and energy security, and I appreciate the President’s personal attention to these issues.”  
  • Doc Hastings (NGP Photo) — no question about it — is one of our heroes!  In President Obama’s latest State of the Union Address, he proclaimed that in America, “We do big things.” Yet nothing about this administration’s energy policy (or lack thereof) is “big.” Squandering 30 million barrels of strategic oil that is supposed to be reserved for true emergencies isn’t “big.” 

…exploration.  Here is a report on citizen input at the recent BOEMRE hearing.   We have summarized a number of more recent comments (Including one from the U.S. House of Representatives) which we provide below for your current review and for future reference:

  • "Please allow Alaska OCS development to proceed immediately. Domestic development of oil is important. We have to reduce dependence on foreign oil from politically unstable areas around the world."  Kenneth Landon
    Brooklyn, NY.
  • Carl Portman (NGP Carl Portman by Dave Harbour, BOEMREPhoto) writes: "The Resource Development Council (RDC) is writing to urge the Bureau of Ocean Energy Management to affirm Lease Sale 193 as held in 2008. The Supplemental Environmental Impact Statement (SEIS) provides sufficient information and analysis to support a decision affirming the sale.
    OCS oil and gas  development is absolutely critical to Alaska’s future
    economy. With the Trans-Alaska Pipeline System now running at one-third
    capacity, exploration blocked in ANWR, and non-development activists
    working toward Wilderness designations in the National Petroleum Reserve, nothing less than Alaska’s future economy is at stake.

  • Judy Eledge wrote: "On behalf of Anchorage Republican Women’s Club, we would like to express our strong support of oil and gas development in the Chukchi Sea and other areas of Alaska’s Outer Continental Shelf (OCS) and to urge the Bureau of Ocean EnergyCongressman Don Young by Dave Harbour, BOEMRE, Chukchi Management, Regulation and  Enforcement (BOEMRE) to finalize the environmental review process and move forward with Lease Sale 193."
  • Congressman Don Young (NGP Photo) and 16 other House Members sent in a positive SEIS Comment on the Chukchi.
  • Tom Falskow writes: "I was reminded every time I walked into the Cancer Center at Providence Health Park that oil and gas industry donations helped to fund that center, along with numerous other companies that are either in the oil & gas sector or receive their revenues as a result of the oil & gas wealth.  Complete letter here
  • Jim Scherieble, General Manager-Alaska for Kenworth Alaska, writes: "The need to allow the development of Alaska’s natural resources has never been greater. It is essential that we cut through the hurdles that impede the progression of our economy. The economic recovery of Alaska and the U.S. can start with allowing the Alaska OCS to proceed quickly. There is no need to support the Middle East oil nations when we have our own resources available."
  • Brent Carlson of Anchorage writes that, "Alaska’s, and the United States, economic future is dependent on reliable and reasonably priced energy.  OCS development in Alaska’s North Slope should be allowed immediately. This is not deepwater drilling like in the Gulf of Mexico and enough studies and permitting has been done. The Trans Alaska Pipeline should be running 2/3 full,… not 2/3 empty."
Many organizations distributed comment cards signed by hundreds of Alaskans which spoke of the statehood compact and concluded: "I urge BOEMRE to affirm Lease Sale 193 and responsibly expedite permit approvals that allow lease tracts to be explored and developed without further delay."  The individuals below added personal, insightful notes to the cards received by BOEMRE (Let us know of spelling, etc. errors.):
  •  Dana Cruz: "Our company had 200+ employees working on North Slope exploration.  We now have 25+.  We need to get exploration going again."
  • Jeevan Pokhard.  "Its the right thing to do."
  •  Nicole St. Amand.  "Alaska and the US need this responsible, offshore exploration and, eventually, development.  Stop the delay."
  • Rocky Dippel (NGO Photo).  "As we approach the 235th "beginning of America" the 56 signers of the Declaration of Independence are rolling over in their graves as we forget what they fought against!  Drill for independence."
  • Marcus Oder.  "I believe the SEIS more than adequately addresses any concerns about the original Sale 193 EIS and thus further leasing, exploration and development should be allowed in the Alaska OCS: Chukchi and Beaufort areas."
  • Andy Petro.  "We need access to Alaska’s oil both from a national and from a state perspective.  Please support offshore drilling in Alaska."
  • Wayne Wooster.  "Fill the pipeline.  Don’t make Alaska a ward of the U.S. government."
  • Steve Pratt.  "Get it done, please!"
  • Claudio Glooschenko.  "I moved to Alaska for opportunity.  Please allow that opportunity to become available."
  • Lucille Petro.  "Don’t mess with my future!"
  • Renee Limoge.  Please allow Lease Sale 193 to progress.  We need the domestic energy production!
  • Thomas Lovas.  "Oil production is essential; affirm the sale."
  • John Sturgeon.  "I support jobs for Alaska and Lease Sale 193!"
  • Nancy Hendrix.  "We need responsible development now.  We need to work on self sufficiency."
  • Rachael Petro.  "Please hurry and support American energy sources.  It is done best in the U.S. where we have the environmental conscience and motivation to do it right."
  • John Shively.  "We need to reform the process so there is a single EIS that covers leasing, exploration and development."
  • Phyllis Thompson.  "This will help put more oil in the Alaska pipeline."
  • Michael Jesperson.  "Open up drilling.  We need the jobs and the energy."
  • Keith Silver.  "I lost my job due to the delay in the OCS.  Please affirm to allow others to work."
  • Mary Shields.  "It is past time for the U.S. to start developing its energy resources again.  our dependence on oil from non-friendly nations is inexcusable."
  • Thomas Hendrix.  "OCS is critical to our state and nation for security, energy and our economy."
  • James Udelhoven.  "Private Sector Jobs = Economic Recovery".
  •  Elizabeth Glooschenko.  "I want my children to have a place to call home in Alaska with the same economic opportunities I had."
  • Wendy Lindskoog.  "Oil is our lifeline, even for the Alaska Railroad: the company  I represent.  We need to develop domestic oil!"
  • Aves Thompson.  "Approval of these permits will create jobs."
  • J.P. Tangen.  "If the TAPS cannot be kept full, Alaska will have an 800 mile long candle and Alaskans will have to sell petroleum jelly for a living."
  • Tindra Cardwell.  "This is about my future as an Alaska resident."
  • Peter Macksey.  "Open please."
  • Bob Barndt.  "Our national defense is vital to the security of the nation.  Natural resources are the key to a great national defense.  Please allow us to bring more of our natural resources to market."
  • Nick Karnos.  "We have willing investors, which is the difficult part.  please remove the roadblocks to development."
  • Craig Taylor.  We need more development here for our people."
  • Colleen Baer.  "Please allow our state the opportunity for economic growth and stability."
  • Keith Miles.  "Please get it done."
  • Ethan Schutt.  "The history and current status of Lease Sale 193 and other Alaskan OCS development activity is deplorable.  Do the right thing and approve L.S. 193."
  • Bruce Anders.  "BOEMRE also needs to be pushing for and supporting state revenue sharing for Federal leasing programs."
  • Jess Hinker.  "Please sustain the lifestyle of Alaska families by allowing development here in our state."
  • Jane Henderson.  "Alaska must develop our resources in order to grow and support our people."
  • Geri Crowley.  "We need resource development: oil, gas and other resources."
  • Nathan Baer.  "There have been too many interferences from outside groups.  oil is vital to the economic health of Alaska and the United States."
  • CC Reed.  "Ensure future Alaska generations have a viable economic future."
  • Chris Stuckey.  "I support opening OCS."
  • Walt Sandel.  "I support opening OCS."
  • Dr. James J. Pizzadili.  "Alaska has the highest standards and the cleanest record in the world.  Time to let go of bogus "clean air" rules for the Arctic ocean."
  • Rafael Leborrett.  "Keep pumping the oil."
  • Bill Muldoon.  "Responsible Development = Job Security"
  • Zachary Reigue.  "Keep the pipeline flowing and promote job growth for the good of all Alaskans."
  • Lynda Evans.  "If oil leaves, we won’t need to worry about restaurants, four-wheel drive, military, police or fire fighters.  We’ll all be gone.  Alaska will become a wilderness that no one can afford to visit."
  • Susan Arcole.  "Our dependence on Arab oil is throwing the US economy into chaos.  We need to develop our own resources.  It is urgent."
  • Don Dwiggins.  "More regulation will turn the U.S. into a third world country!"
  • Mike Thomas.  "Respect our constitutional rights"
  • Dave Krigbaum.  "Soon!!  Please!!  Responsibly!!"
  • John Sturgeon.  "Affirm Lease Sale 193."
  • Dean McVey.  "Shell Oil has held up their end of agreements to the tune of $4 billion.  It is time for the Federal government to hold up its end."
  • Amy Mackey-Hornak.  "Alaska needs to move the economy forward.  This is an instrumental first step."
  • William Bernier.  "It’s time to do this."
  • Matthew Mellon.  I represent about 150 direct and indirect employees that would benefit from exploration and development of Lease Sale 193.  They would like to go to work."
  • Michael Ferris.  "Please move this permit forward.  It is extremely important to the Alaska economy."
  • Bob Laule.  "Energy independence is critical for our future."
  • Cheryl Boren Heinze.  "I represent hundreds of people in the Matanuska Valley who have no access to these comment cards…but strongly endorse Lease Sale 193!"
  • Mark Korting.  "This seems to be appropriate."
  • Julie Korting. "I believe it’s time to move forward!"
  • Wayne Leighty.  "As a lifelong Alaskan and PhD in resource management/economics, I urge you to move forward this development.  Let’s not sacrifice the huge benefits on the alter of fear."
  • John Rogers.  "The USA needs oil and gas produced domestically."
  • Donna Logan.  "To keep Alaska growing and to support our state is an obligation to develop natural resources.  Please support the Chukchi Sea lease sale."
  • Vladimir Katic.  "New oil and gas from Chukchi Sea exploration and development is critical to future operation of TAPS and economic viability of the state of Alaska."
  • Pat Doyle.  "…concerned that any future delay will impact our local economy negatively."
  • Tom Maloney.  "We need to lower unemployment and increase private investment in Alaska and the entire United States."
  • R. J. R.  "Our country needs these oil resources to keep America strong and less reliant on imports."
  • Ken Fuller.  "Without these developments Alaska will become an economic disaster area."
  • Susanne Fairbanks.  "Responsible development must be efficiently and expeditiously pursued.  Thank you."
  • Bill Miernyk.  "Drill."
  • Stanley Foo.  "…developing our domestic natural resources responsibly is critical to our national security and our economic recovery."
  • Ron McCormick.  "Please assure this goes through.  Thank you."
  • Frank Brown.  "The U.S. needs local supplies of energy.  Expedite permit approvals."
  • James Duffield.  "Move forward please!!"
  • Michael Smith.  There is no valid reason to not develop the OCS and a host of reasons to do so."  

For Immediate Release *** July 12, 2011

Contact: Craig Koshkin, (713) 337-8820, ckoshkin@consumerenergyallliance.org

 

Thousands Call for More Offshore Drilling in Alaska
CEA Delivers More Than 128,000 Public Comments Supporting

Responsible Energy Production in Chukchi Sea

 

WASHINGTON, DC – The president of Consumer Energy Alliance (CEA) announced today that well over 100,000 public comments from Alaska and across America have been delivered to the federal government voicing support for responsible oil and gas development in Alaska’s Chukchi Sea.

 

CEA delivered more than 128,000 comments that it collected during a 45-day public comment period to the Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE), the federal agency that oversees offshore oil and gas leasing. BOEMRE is in the process of finalizing its environmental impact study (EIS) for leasing in the Chukchi Sea, specifically Lease Sale 193.

 

After delivering the comments, CEA Alaska chapter chairman Jeff Jones said, "Issuing the necessary permits for offshore oil and gas production in Alaska would provide a much-needed boost to the American economy. Alaska’s offshore resources are estimated at about 27 billion barrels of oil, which during peak production could provide the United States with 1.3 million additional barrels per day, all while restoring capacity to the critical Trans-Alaska Pipeline System. Developing these vast energy resources would also create more than 54,000 new jobs nationwide and generate nearly $200 billion for federal, state, and local governments."

 

Jones said that the more than 128,000 comments that CEA delivered yesterday, as well as the thousands of additional comments supporting development, all send a clear message: Americans demand more jobs and more energy security. "Now is the time to move forward with responsible offshore energy production in Alaska, a process that begins with finalizing Lease Sale 193," Jones said.

 

CEA President David Holt also issued the following statement:

 

"Moving forward with energy development in offshore Alaska will be a key component of a balanced and sensible energy policy. These 128,000 public comments make clear that Americans are not interested in keeping energy resources under lock and key, and the federal government should move swiftly toward creating an all of the above plan that utilizes all of America’s vast energy resources."

 

The Chukchi Sea, off Alaska’s northwest coast, offers more oil and gas resources than any other undeveloped U.S. offshore energy basin. According to independent experts, Chukchi may be one of the largest untapped sources of oil and natural gas in the entire world.

 

In May, BOEMRE released its Revised Draft Supplemental Environmental Impact Statement (SEIS) for Chukchi Sea Lease Sale 193. By law, the agency had to allow 45 days for public comments on the SEIS, a period that ended yesterday, July 11, 2011.

 

###

 

Consumer Energy Alliance (CEA) is a nonprofit, nonpartisan organization, comprised of more than 160 affiliate members, including energy consumers and producers, and tens of thousands of consumer advocates, that supports the thoughtful utilization of energy resources to help ensure improved domestic and global energy security, stable prices for consumers and balanced energy policy for America.

 


 

 

 

 

 

 

 

 

 

 

 

 I was in attendance at the Alaska Governor’s rally in Anchorage in March of this year.  Governor Parnell spoke not only to the need for our State of Alaska to start being more receptive to further oil and gas development at the State level, but also the fact that the Federal government holds many of the keys to the future of our nation’s economy through projects that have yet to receive public approval or backing. 

 
The Chukchi is but one of several projects vital to this nation.  Without such projects, we can be assured that the State of Alaska will cease to continue providing both needed energy for our nation as well as great jobs for Americans that fuel our economy. 
 
I am in full support of allowing Alaska OCS development to proceed quickly.  My family has now lived in Alaska for the past 11 years.  I work in the oil and gas industry, so you could assume that my position is a bit biased on the subject, but then I see what tremendous impact this industry has on our State and the well-being of our citizens and I cannot stand by and watch that fade away into a sad and slow decline of all that we have accomplished for our nation.  Being on the inside of this industry allows me to understand that within the next decade we will cease to have an oil and gas industry in the State of Alaska without further new oil and gas developments in the works.
 
On a more personal note, I had a major medical event in my life this past year that has required consultation with specialists and lots of follow-up care.  Being from originally from Seattle, I assumed that I would need to get on the airplane and travel down to Seattle for much of my treatment at their wonderful medical facilities.  This would have created lots of strain on our family as well as incurred lots of further cost to travel and spend time away from my family.  To my great fortune, we had all of the specialists and advanced technologies for my condition available here in Alaska!  I can guarantee you that this would not be the case if we did not have a vibrant and robust economy founded on our oil and gas resources.  Without this economy and the direct and indirect funding it provides to our citizenry, I most assuredly would have been on an airplane to Seattle.  I was reminded every time I walked into the Cancer Center at Providence Health Park that oil and gas industry donations helped to fund that center, along with numerous other companies that are either in the oil & gas sector or receive their revenues as a result of the oil & gas wealth.  Having oil and gas employees like myself, further allows some of the specialist doctors to move here from places all over the USA because of the medical insurance benefits that companies such as mine cover – allowing us to have better care providers right here at home and creating great jobs for that sector of the economy!
 
This story is a but one example of what we have created in terms of great jobs, both directly in the oil and gas industry and in other fields in our community as a result of the vibrant economy we currently enjoy.  Turning off the oil and gas spigot will certainly bring this nation’s economy further on its knees and will lead to loss of further jobs in the State of Alaska as well as to the nation at large.  We can develop Alaska OCS responsibly – just look at Norway and the United Kingdom where such offshore development has been ongoing since the 1960’s. 
 
Let’s give our nation a  shot the in the arm that it needs to get back on the top of the economy and energy needs and that will generating jobs for our next generation!  (Tom Falskow)