Shell Plans To Explore The Chukchi This Summer!

Dan Fause, ASAP, Alaska Gasline Development Corporation, AGDC, Photo by Dave HarbourRelated Photo Cutline, Journal of Commerce, by Tim Bradner.  Alaska Gasline Development Corp. President Dan Fauske (NGP Photo) said the change in the Alaska Stand Alone Pipeline project to increase the capacity to a 36-inch diameter and use high-strength steel could allow up to 2.6 billion cubic feet per day to be shipped. That improves the economics of the project compared to previous restrictions that limited it to no more than 500 million cubic feet per day.  (Bradner's is one of the most informative, thorough, readable gas pipeline updates we have seen.  Kudos!  -dh)

Journal of Commerce by Tim Bradner.  A year ago there was a lot of complaining about state money being wasted on the Alaska Stand Alone Pipeline project, the little brother to the big North Slope gas pipeline project.  … But a funny thing has happened. The project has morphed. Little Brother pipeline isn’t little anymore. It has grown up.

Video: Today, U.S. Senator John Barrasso discussed the LNG Permitting Certainty and Transparency Act (S. 33), that will speed up the approval process for exports of liquefied natural gas (LNG) to countries which do not have free trade agreements with the United States.  Additionally, the U.S. Chamber of Commerce and the American Petroleum Institute issued letters of support for S. 33 in advance of today’s hearing.   

Calgary Herald by Dan Healing.  A consortium including Calgary-based midstream and energy firm Altagas Ltd. has taken possession of the proposed Douglas Channel LNG project through a plan of arrangement that ends a Companies’ Creditors Arrangement Act process.   (Alaskans will note the consortium includes investors from Asian and European market areas.  -dh)

Shell Gears Up For 2015 Chukchi Exploration Season!

World Energy News by Joseph Keefe.  Oil major Shell wants to revive its Arctic oil drilling programme this year after a near two-year suspension, angering environmentalists who say the risk of an oil spill is too high.

Robert Dillon, U.S. Senate Energy and Natural Resources Committee, Shell to Drill Chukchi 2015, Dave Harbour PhotoRobert Dillon (NGP Photo) of the Senate Energy and Natural Resources Committee reports this afternoon that, "Shell CEO Ben van Beurden today told a conference in London that Shell would drill in Alaska’s Chukchi Sea this summer.

(Photo: Shell), ocs drilling platform"Shell has invested nearly $6 billion in leases and exploration in the Chukchi and Beaufort seas off Alaska’s northern coast," Dillon said.  "The Arctic holds 13 percent of the world’s undiscovered oil reserves, and 30 percent of undiscovered natural gas deposits, so the potential for Alaska is immense. Arctic waters off Alaska’s northern coast contain an estimated 30 billion barrels of oil and 221 trillion cubic feet of natural gas, according to the federal government."

Dillon said the resources are "critically important to the nation, state and continued operations of the Trans Alaska Pipeline System (TAPS)" in terms of domestic oil supply and jobs. 

Shell aims to restart Arctic drilling this year – CEO (Reuters)

LONDON Thu Jan 29, 2015 5:25am EST

Jan 29 (Reuters) – Royal Dutch Shell is planning to restart oil drilling in the Arctic this year, Chief Executive Ben van Beurden said on Thursday.

The oil company suspended its Alaskan drilling programme in 2014 to rein in costs and in the face of fierce environmental opposition.

Van Beurden said he aimed to restart the campaign this year, pending approval of the necessary permits and the conclusion of various legal challenges.

"Yes, we are minded to drill in the Chukchi Sea," he told reporters at a conference in London.