Petroleum News by Eric Lidji (NGP Photo).  Repsol has announced three “new good quality hydrocarbon discoveries” from its recently completed North Slope exploration program, the company said on April 23.  The Qugruk No. 1 and Qugruk No. 6 wells produced two hydrocarbon shows with “encouraging results during production tests,” and the Qugruk No. 3 well identified hydrocarbons “at multiple levels,” according to the Spanish supermajor. Repsol drilled Q1 to around 8,179 feet, Q3 to around 10,544 feet and Q6 to around 8,651 feet.

(Your author is in China.  While updates have been sporatic, we will resume normal operations in a few days upon our return to Alaska.  The gracious patience of our readers is appreciated.  -dh)

Petroleum News.  The new natural gas storage facility operated by Cook Inlet Natural Gas Storage Alaska, or CINGSA, near the city of Kenai on Alaska’s Kenai Peninsula played an essential role in filling what would otherwise have been shortfalls in Southcentral Alaska’s utility gas deliveries during the past winter,....

(Your author is in China.  While updates have been sporatic, we will resume normal operations in a few days upon our return to Alaska.  The gracious patience of our readers is appreciated.  -dh)

Petroleum News.  Cathy Foerster (NGP Photo) and Norm Rokeberg were among Gov. Sean Parnell’s appointments approved by the Alaska Legislature April 8.  Foerster, who holds the petroleum engineer seat on the Alaska Oil and Gas Conservation Commission, and is serving as the commission’s chair, was appointed 2005 and reappointed in 2007. Her current reappointment was effective March 1; the term expires March 1, 2019.  Rokeberg was confirmed to the Regulatory Commission of Alaska. He was named to the seat March 1, replacing Kate Giard, who resigned as a commissioner Jan. 4. Rokeberg’s term expires March 1, 2019.

Today's dispatch comes via Shangri-La Hotel in Shanghai, China.  -dh

From NGP Reader, Pedro van Meurs (NGP Photo).  This is a reminder that my well known course, World Fiscal Systems for Oil and Gas, is scheduled to take place in Rio de Janeiro during the week June 3 – 7, 2013.  The course will include the spectacular results of my survey World Rating of Oil and Gas Terms, 2011-2012, which covers 156 countries in the world. Also there will be some special emphasis on Brazil. I would be grateful if you could recommend participants for this course. The course is computer interactive. Please click here for the course program and other course information.  If you have trouble with the link, please copy and paste the following URL: http://www.petrocash.com/Common/courses/default.aspx If you need any further information please contact us. Best regards, Pedro van Meurs President, Van Meurs Corporation PO Box CR-56766 # 1261

Today's Energy Links From The Office of the Federal Coordinator:

• Analyst says Asia LNG trading hub unlikely to succeed
• India struggles with new pricing formula for natural gas
• BP suggests new natural gas pricing system to Indian government
• Japan-Korea LNG price for June deliveries falls to $14.85
• National oil companies not as dominant in LNG as in oil
• Rosneft, Marubeni agree to consider LNG plant
• Energy Department working through comments on LNG exports
• Canadian regulators adopt new pipeline safety rules
• Western Canadian oil not guaranteed to lower pump prices

 From the Office of Alaska Department of Natural Resources Commissioner, Dan Sullivan: Alaska gas opportunities capture attention at LNG 17

A number of keynote speakers highlighted Alaska’s role in supplying domestic and global energy markets during the weeklong conference. During Monday’s opening ceremony, Nobuo Tanaka, former head of the International Energy Agency, and Chris Smith (NGP Photo), the U.S. Department of Energy’s acting assistant secretary for fossil fuels, specifically mentioned Alaska’s important role as a global energy supplier. Other LNG 17 speakers who referenced Alaska during their presentations included Shigeru Muraki, executive vice president of Tokyo Gas Co., Japan’s largest natural gas utility, and Daniel Yergin (NGP Photo), a global energy expert and author.

On Wednesday, Natural Resources Commissioner Dan Sullivan (NGP Photo) gave a presentation on the comparative opportunities of Alaska natural gas during a main-hall plenary session focusing on the North American LNG market. “In addition to highlighting the comparative advantages of an Alaska LNG project, this was also a great opportunity to update potential investors on the progress that the Parnell Administration and legislators made this year to spur new investment through fiscal reform and increase the efficiency of oil and gas permitting on state lands,” Sullivan said.  

CBC News.  China's largest bank will be helphttp://www.northerngaspipelines.com/sites/all/modules/fckeditor/fckedito...); background-position: 0px -528px;" alt="" />ing to finance the proposed Kitimat refinery, which would process oil from the Alberta oilsands in B.C., instead of the raw bitumen being shipped overseas.  B.C. media mogul David Black said he has signed a memorandum of understanding with the Industrial and Commercial Bank of China (ICBC) for the proposed refinery that is estimated to cost $25 billion.

Shooting Oneself In the Foot

Commentary by Dave Harbour

Certain left leaning Alaskans are intent on shooting Alaska's economy in the foot.  

They are promoting a voters' referendum that would repeal the oil tax reform recently enacted.  Just as the Legislature and Governor acted to improve the investment climate through oil tax reform, these people are acting to maintain the uncertainty of the investment climate--adversly affecting all Alaskans, particularly the future of the coming generations.  

Readers can bet that this group will be composed of an odd assembly of socialists, environmental extremists, publicity seekers and ex-public officials who see the oil industry as enemies and not the strong supporters of Alaska's way of life.  

One can envision investors gathered around a breakfast or boardroom table in coming days, concluding that Alaska is still too uncertain and risky  to merit a major new financial commitment.  

So, what should Alaskans do now?  Do not sign the anti oil petition.  Those who do sign it will be telling investors: "Stay out; we can do just fine without your money and commitment!"

Meanwhile, Alaska's economic lifeline, the Trans Alaska Pipeline, continues its steady throughput decline from 1/4 capacity toward zero.   Only a change in Alaska's investment climate can produce a greater flow of investment.   Repealing tax reform will drive a stake through the heart of investor confidence, perhaps for a very long time.    (References: Fairbanks News Miner, SB 21 and the Petition to repeal it.)  -dh