Companies and MarketsAlaska Highway Gas Pipeline Project: Denali’s Competitive Advantage over TransCanada.  Two pipeline entities, TransCanada and a newly created pipeline company, The Alaska Gas Pipeline LLC (Denali) are into a race to build and operate a natural gas pipeline from North Slope to the Alberta Hub, where the gas can be sent to various North American markets. TransCanada is an independent pipeline company with a vast existing network in Canada. TransCanada builds and owns hydrocarbon transmission lines in Canada and the United States. For the last few years a research study  and work have been carried out by the company to construcCraig Campbell - 12-2002 Appointment Ceremony by Dave Harbourt the Alaska Gas Highway Pipeline. The Alaska Gasline Inducement Act (AGIA), which was unveiled on March 2, 2007 for the development of Alaska gas resources by offering incentives to companies that produce gas resources and companies that can build a pipeline in a state. TransCanada received the license from AGIA along with a $500 Million state subsidy.     *     House Majority.  The House Judiciary Committee will hold a confirmation hearing for Lieutenant Governor-designee Lt. Gen. Craig Campbell (NGP Photo-r) Monday, July 20, 2009 in Fairbanks. The hearing, which will be teleconferenced and carried by KTOO’s Gavel-to-Gavel, will begin at 9:30 a.m. at the Fairbanks Legislative Information Office, Room 380. The Fairbanks LIO is located at 1292 Sadler Way.  "The Governor quit and went fishing," Judiciary Chair Jay Ramras, R-Fairbanks, said. "Governor Palin failed to leave specific instructions, so the Legislature is stepping in to bring order to the constitutional chaos she created."     *      AP via ADN by Dan Joling.  The Center for Biological Diversity gave a 60-day notice that it will sue the Environmental Protection Agency for failing to consider the effects of pesticides on polar bears, a threatened species, and their Arctic habitat.  Spokeswoman Rebecca Noblin said the poisoning of the Arctic is a silent crisis that also threatens Arctic people. … Natalie Dawson, a biologist with the group’s Anchorage office, said the pollutants accumulate in plankton at the bottom of the food web. Fish eat plankton, seals eat thousands of fish and polar bears eat hundreds of seals.  The lawsuit will take aim at the more than 1 billion pounds of pesticides used in the United States to control weeds, insects and other organisms.

Scroll Down for previous July Posts…."Five of the largest environmental groups in the world have become rooted in Alaska….  Their strategy is simple: form local partnerships where possible to lend a “face” to the fight against energy development. Pure numbers are not important here but names are and that was never more evident than in April when the Washington D.C. Circuit Court ordered the Department of Interior to vacate its approved 5-year OCS leasing plan.  The plaintiffs in that case include at least three international environmental groups and one local indigenous group. That local group might be hard-pressed to fill a table at this luncheon.  That table could influence an outcome for a country that already imports 60% of its oil how quickly that number will grow to 80%. And that table in the back could drive the US Federal Treasury, (which could use some cash right now), to refund over $10-Billion in lease bonuses because of a 5-year OCS leasing plan that was, in layman’s terms, voided on a technicality."   6) Comparing today to the TAPS, 1970s-era atmosphere.  "Imagine, for a moment, how drastically different Alaska would look today if not for a pipeline project that, in reality, was made possible by one vote. One vote changed the energy landscape in and outside of Alaska for decades. Fortunately, that vote was in favor of a project that was one of the most significant of its time. But had that vote gone against the Trans-Alaska Pipeline, the U.S. would still be getting its 700-thousand barrels a day. It just wouldn’t be coming from Alaska – where environmental and safety standards are the most stringent in the world."   -dh.

7-8-09.   OilweekFor the sixth time in nine months, and the second time in three days, a bomb has exploded near EnCana´s natural gas pipeline in northeastern British Columbia.  The blast early Saturday morning took place less than a kilometre from where EnCana workers were trying to cap a gas well damaged in an explosion Thursday.   "Our crews were at the wellhead site, where they were working to stop the gas leak," EnCana spokeswoman Rhona DelFrari said from Calgary.  … RCMP spokesman Cpl. Dan Moskaluk said the EnCana crew, as well as a nearby resident, reported the explosion.  …   EnCana has offered a $500,000 reward for information and set up a special phone line for the bomber to call them but so far it hasn´t rung.  Meanwhile, EnCana is maintaining bolstered, 24-hour security along the pipeline. But DelFrari admitted there´s no way to ensure the bomber doesn´t strike again.  "Let´s face it, it´s hard to patrol hundreds of kilometres of pipeline and we have about 150 wells in the Dawson area," she said.  (Note:  Northern pipeline operators everywhere, take additional precautions in this age of eco- and Islamic terrorism.  -dh)    *     CBDConservation organizations and a western Colorado county today filed a legal challenge to a Bush-era plan that designated energy corridors that promote coal-fired and other fossil-fuel power plants. Instead of building new electric lines and transmission towers to connect areas high in solar, wind, and geothermal energy, the Bush plan envisioned building them to existing or proposed dirty coal plants.   (Note how headline writer inserts bias into the report, "dirty coal plants".    Eco-journalistic terrorism.  -dh)     *     Media NewswireThe developing natural gas industry in Pennsylvania will create jobs and offer opportunities for local residents who seek training and industry experience, according to the Marcellus Shale Workforce Needs Assessment released on Tuesday, June 23.

7-7-09.  Report: Yesterday the Anchorage Chamber focused on Alaska’s oil and gas industry.  Chairman-Elect Tony Izzo (NGP Photo-r), one of Alaska’s leading energy experts himself, introduced Mort Tony Izzo - Chamber Chairman - 7-6-09 by Dave HarbourPlumb (NGP Photo-r with brochure) of First National Bank of Alaska who provided Chamber members with two, excellent new publications of a coming four part series.  These first two, include : "Alaska’s economy is like a three-legged stool" (31% Petroleum, 35% Federal government and 34% all other sectors), and Dr Scott Goldsmith at Chamber 7-6-09 by Dave Harbour"There’s a good chance your job depends on petroleum" ("We can trace a third of all Alaska jobs directly to petroleum.").  The to-be-announced parts 3 and 4 of the series will deal with how the Alaskan economy survives challenges such as declining oil production.    Izzo then introduced retired University of Alaska-Anchorage Economist, Scott Goldsmith (NGP Photo-l), to present, "How Petroleum Has Transformed the Alaskan Economy".  THIS PRESENTATION SHOULD BE UPDATED ANNUALLY AND SHOWN TO EVERY ALASKAN GOVERNOR, COMMISSIONER, LAWMAKER, MAYOR, ASSEMBLY, TEACHER AND SCHOOL CHILD (GRADES 5-12).  Click this link to see the slides, read the presentation, listeMort Plumb at Chamber on 7-6-09 by Dave Harbourn to his audio as you read…and actually watch Dr. Goldsmith answer a question (Click on Izzo clip.  I have to comment here that it is truly illustrative of our modern society’s chaos that one of us could conceive of the question asked in the video clip.  The person, presumably knowing that Alaska is 90% dependent for its operating funds on oil, asked, "What should we do to replace oil?"  Shouldn’t an intelligent question be, "What should we do to encourage the exploration and development of more oil?"  Anyway, you’ll hear Dr. Goldsmith give a proper, rational answer.  -dh  *  Furthermore: For those who value their jobs in Alaska or hope that continuing prosperity here follows their children into other generations, this should be a family education piece.  We’ve reported quite a lot recently on the economic travails of Inuvik and other Northern Canadian peoples resulting from a chaotic regulatory process.  And, we’ve reported on the challenges faced by Alaska OCS exploration, ANWR exploration and other legal and regulatory challenges to projects.  Dr. Goldsmith’s presentation can be viewed either as, "Here is your life with petroleum," or, "Here is your life without petroleum".  His Alaska case history is universal enough that it can be absorbed as relevant by citizens of this or other natural resource provinces, at other times and with respect to other projects.  -dh)   *  KSDP, Sand PointSenate Energy Chair Lesil McGuire today said her first priority as president of the Pacific Northwest Economic Region (PNWER), will be jump-starting a Northern Pipeline Coordinating Council (NPCC), to research and help resolve cross-border route, regulatory, workforce and supply issues that could slow construction of the Alaska North Slope natural gas pipeline.   *    Independence Day Report:  A wonderful 4th of July it was, in Anchorage, with breakfast and family activity on the park strip followed by the annual small town parade at 11.  My favorites in the parade were crab fisherman Phil Harris, Mayor Dan Sullivan, Senator Mark Begich and marchers for Outer Continental Shelf (OCS) jobs and ‘Gas Pipeline Supporters’. 

7-6-09.  ADN.  What was supposed to have been a day trade turned into a headache for Rep. Jay Ramras (NGP Photo) last week, when Conservatives 4 {Governor Sarah Palin, NGP Photo} blogger Rebecca Mansour took him to task for aRep Jay Ramras by Dave Harbour 5-09 $172,000 investment in BP.Governor Sarah Palin by Dave Harbour 5-09 Ramras, a critic of Palin’s Alaska Gasline Inducement Act (AGIA), bought the stock in 2008 about a month after voting against awarding the AGIA license to TransCanada, a pipeline company. … Last week he bought 5,000 shares in TransCanada to balance his holdings in BP and blunt the attacks of those he called "terrorist bloggers." (As of Thursday, he said, he had a negative position in both.) "Where do you draw the line?" he asked.   (Comment.  Jay, you are dedicated and good at what you do in the Legislature and in business.  Where do you draw the line?  You invest in things the Legislature cannot be perceived to affect.  Try DSU, or BIIEX, or GOLDX, MOS or RIG….  You have a long career as both a respected business leader and statesman.  Don’t give your opponents excuse for criticism as they will have plenty of reason to attack you on the merits of issues alone.  Hang in there; you are among the best and the brightest.  You care about Alaska and her future.  Forego the borderline trades.  Of course you have no intent of profiting from your Legislative duties.  Make sure there that everyone also has the PERCEPTION that you are always on the right track as well!   The lower road may not be illegal but for those in the spotlight the high road is the only road.  -dh     *     Alaska Gas Pipeline Blog.  Bit of a shocker. I hope this means the business climate in Alaska improves for construction of the Alaska Gas Pipeline. 

7-2-09.  Calgary Herald by Claudia Cattaneo.  The conversation in this town of 3,500 in the Western Arctic should be about aboriginal self-sufficiency, environmentally responsible Northern development and a new clean-energy storehouse with immense potential. After all, the proposed $16.2-billion Mackenzie Valley natural-gas pipeline project was supposed to be under construction by now.  Instead, the talk is about the regulatory bungling, federal government inaction and fading industry interest in what would be one of Canada’s largest infrastructure projects.        *       Much coming later in the day.  Canada Day yesterday: HAPPY BIRTHDAY!  Anchorage Mayor Sullivan has energy priority.  A new Arctic Regional Advisory Council draft from Senator Begich……..

7-1-09.   Commentary: Yesterday, the Resource Development Council for Alaska held its annual luncheon.  (Watch here for a coming audio link.)  I’m guessing that 800 people filled that 600 person Howard Rock Ballroom at the Sheraton.  Having forgotten to make a reservation, to my delight Brad Keithley, a friend and attorney, called to say he had an extra seat at his table.  What a pleasure it was to be there, too.  My kind of people.  Hard working entrepreneurs, business folks who realized where real wealth comes from: not from subsidies, grants, donations and taxes on others.  RDC President Rick Rogers first introduced Senator Mark Begich (NGP Photo-l) who proficiently discussed his Alaska natural resources agenda.  He also referred to a, "letter to the editor" connected with his remarks on OCS and an upcoming visit of Senators led by Barbara Boxer.  I was pleased that the Daily News had teed up the issue of a proposed "Arctic Citizens Advisory Council" with its readers in its Sunday Editorial, and followed that with my Op-ed piece on the same subject yesterday morning.  I’m pretty sure that nearly all 800 attendees had read both Senator Begich’s Yin and my Yang.  Many came to me expressing appreciation for my position.  I won’t go into details about the 5 minute exchange Senator Begich, his Chief of Staff David Ramseur (NGP Photo-l below) and I shared afterward, because it was personal and not completely relevant.  The bottom line is that, 1) I would not change the Op-ed piece I wrote, except for a devious little typo, and 2) we agreed to stay in touch on this and other issues and I don’t expect the good relationship we’ve shared for over 20 years to suffer from yet another policy disagreement between us.  Here are some other highlights of his presentation:  1) energy bill: "Senator Murkowski worked hard to make sure it contained some Alaska provisions."  2)  environment: "There is no question that Alaska sees the impact of climate change; Alaska is ‘ground zero’ from that perspective".  3)  On upcoming visit of his colleague Senators: "What we have to do is get the Senators up here.  They nay not be in line with us on ANWR," but he emphasized that they could be on other issues.  "As these Senators come to Alaska," he said, "I’m going to need your help," again referring to a ‘letter to the editor’.  4.  Gas Pipeline.  "I’m very pleased to see TransCanada and ExxonMobil getting together as well as the Denali progress.  You’ll hear talk a lot about gas in the Senate because I want that to be the agenda."    The Keynote Speaker, David Lawrence (NGP Photo-r above) Exploration EVP of Royal Dutch Shell, gave perhaps the best oil industry, corporate-level speech I’ve heard in the last 10 years over multiple Federal and State venues.   Lawrence announced the company would be building an icebreaker for Shell’s Arctic work and introduced the builder, Gary Chouest (NGP Photo-r), who delivered a personal appraisal of the oil industry’s impact on Louisiana–from a shrimp fishing family and business perspectives.  Back to Lawrence’s comments.  They are important for the candor and Alaska investment and the raw courage they represent in today’s climate of politically orchestrated sound bites.  I think our NGP readers will find these highlights motivating if not inspiring: 1) Alaska’s responsibility and opportunity: "The role Alaska has played and the role Alaska WILL play on resource development and the future of energy is unquestionably larger than any other state, and frankly most countries. So, yours is an enviable place in the world".  2)  Alaska’s Choices.  "It is not a question of oil and gas versus renewables, or renewables versus biofuels, or biofuels versus oil and gas. It is not a matter of OR at all.  It’s a matter of AND – we need all of the above."  3)   Alaska’s relationship with renewables.  "Optimistically, we believe renewables could provide around 30% of the world’s energy by the middle of this century, up from 3% today.  But where will the other 60- 70% come from?  Places like Alaska, we hope. Why – because the resource base is huge – another potential Gulf of Mexico scale resource…."  4)  Alaska is ‘Ground Zero’.  "Unfortunately, Alaska, particularly the offshore, is ground-zero in the misguided effort to put us in an ‘”either / or world “ – where fossil fuels play no role in the bridge to an energy future.  For economic progress, revenue generation, jobs, energy security AND protecting our environment, it all needs to come together – oil and gas, renewables, biofuels, CO2 management – a world of AND."  5)  On environmental opposition.