3 legislators look to next session.  Kenai Peninsula Online.  

Chenault said one of his concerns will be the uncertain future of the Alaska LNG Project under the state’s sole leadership….

Below is Ak-Headlamp’s good review, from Alaska’s perspective, of Presidential appointments. 

We’ll just add this comment: With Trump energy policies in place, all kinds of energy activity could increase, from exploration and development on State leased lands, to Canadian/U.S. pipelines, to Federal on- and off-shore lands access.  But since Trump seems focused on ‘jobs’ more even than ‘energy’ we do see a temptation for him to provide some level of taxpayer subsidy to wind and solar projects which are, otherwise, uneconomic and contribute to both the national debt and liberal constituencies.  With his budding friendship among technology giants, we could also expect to see favorable support for such projects as Elon Musk’s auto and space adventures.  In short, we envision an emerging policy characterized more by practical job support than a conservative, free enterprize philosophy.  -dh

Ak-Headlamp Today: Filling the roster. President-elect Donald Trump has tapped Republican Rep. Ryan Zinke, who has represented Montana’s at-large congressional seat for one term, to serve as secretary of the Department of the Interior, according to an individual with firsthand knowledge of the decision. In addition, Trump has picked Rick Perry to head the Energy Department, an agency whose name he forgot during a presidential debate even as he vowed to abolish it.

Alaska Senator Lisa Murkowski issued the following statement on Perry’s appointment, “I welcome the President-elect’s nomination of former Gov. Rick Perry to be Secretary of Energy. I strongly believe the leadership at this Department should have a broad understanding of the need to increase access to energy, make it more affordable, and improve environmental performance – all key factors that should drive our nation’s innovation policy. As a former governor of Texas, Rick recognizes the economic and security benefits of technology innovation and an energy supply that is diverse, reliable, and affordable. I look forward to meeting with Gov. Perry to discuss a wide range of important issues, including the high cost of energy in Alaska, the United States’ innovation excellence, the future of nuclear energy, LNG exports, and the Strategic Petroleum Reserve. I also look forward to learning more about the team he would put in place around him, and to considering his nomination before our committee at a hearing in early January.”

Headlamp applauds both choices as they signal a new commitment to responsible resource development that was absent from the Obama administration. 

Shell has turned away from giant “frontier” projects, focusing instead on exploring closer to home, such as in Malaysia where it has been producing oil for more than a century. Many of its rivals are following suit. Shell, like many of its peers including BP and Exxon Mobil, have been forced into such strategies as the chances of finding new and huge reservoirs in hitherto unexplored frontier areas has diminished. The rate of successful exploration has dropped sharply in the last decade, with the proportion of projects finding any oil or gas down from around 40 percent to about 30 percent, according to Andrew Latham, vice president of exploration at consultancy Wood Mackenzie. Fewer than half of the finds go into commercial production. For Shell, the success of the new strategy and the Alaskan failure mean it will not return to frontier areas in the near future, but Ceri Powell, Shell’s head of exploration still sees opportunities for big discoveries in the likes of West Africa, Namibia, South Africa, Uruguay and eastern Canada.

Without question, Trump is building the most pro-drilling Cabinet in American history. In addition, a portion of Trump’s promise to speed economic growth and create 25 million new jobs rests on his commitment to leasing more federal lands and offshore areas for drilling. In the campaign, Trump’s advisers estimated that such an expansion would generate nearly $100 billion a year in additional economic growth over the next decade. The source for their projections was a study by a Louisiana State University economist, Joseph Mason, published by the Institute for Energy Research, a group that champions pro-fossil-fuel policies. “There’s been a lot of rhetoric from Trump about ramping up U.S. oil and gas production, but I think there are relatively few regulatory steps they can take to achieve that,” said Jason Bordoff, a former energy adviser to President Obama who is the founding director of the Center on Global Energy Policy at Columbia University. “You can open a lot of new areas, and you can scrap a lot of environmental rules, and on the margin that might slightly reduce the cost of drilling a new well. But that has a negligible impact compared to the swings of the global oil market.”

The Exxon vs Gov. Walker feud got much more interesting with the presumptive appointment of Exxon CEO Rex Tillerson to Secretary of State. Exxon holds the state’s largest share of natural gas reserves and was, until recently, the lead partner in the effort to build a gas line, a role the state is now taking over. Tillerson, who said he’s been involved in Alaska natural gas projects at Exxon since 1985, told World Gas Intelligence that Alaska has been its own “worst enemy” on the pipeline project, saying the state changes its approach every time it changes governors. Gov. Walker has frequently fired back.

BP ALASKA TEACHERS OF EXCELLENCE NOW ACCEPTING NOMINATIONS

*       NEW AWARD FOR UNSUNG HEROES IN ALASKA SCHOOLS

BP is accepting nominations for the BP Teachers of Excellence program, which recognizes Alaska teachers’ exceptional work. In addition to honoring teachers for the 22nd year, the program is also accepting nominations for unsung heroes in Alaska’s schools, such as principals, counselors, teacher assistants or others. Anyone can nominate a BP Teacher of Excellence or the new BP Educational Allies award, by visiting BPteachers.com<http://www.bpteachers.com/>. The deadline for nominations is February 1, 2017.

The program honors K-12 teachers and other school staff from public or private schools who have made important contributions to education and their communities. Each BP Teacher of Excellence will receive $500 and a $500 matching grant to their school. BP will select one Teacher of the Year who will receive a $1,500 scholarship for continuing education. Educational Allies will also receive a cash award and recognition at the annual awards ceremonies in the spring.

Since the program’s inception in 1995, BP has recognized more than 680 Alaska teachers and still receives more than 1,000 nominations each year.

Further information:

Dawn.patience@bp.com<mailto:Dawn.patience@bp.com> 907-301-8726
Or AKBPTeachers@bp.com<mailto:AKBPTeachers@bp.com>

Breaking news this afternoon:

State receives $17.8 million in oil and gas lease sales

(Anchorage, AK) – The Division of Oil and Gas today received 410 bids from companies and investors seeking oil and gas leases on state lands during the division’s annual North Slope, Beaufort Sea, and North Slope Foothills areawide oil and gas lease sales. Winning bids totaled nearly $17.8 million.

By acreage, this year’s North Slope sale is the second largest of its kind since 1998, when areawide oil and gas leasing began. By dollar amount, it is the third largest since 1998. The division received 402 bids on 384 tracts for a total of 599,880 acres, with winning bids totaling $16,900,490. 

In the Beaufort Sea sale, the division received 8 bids on 7 tracts totaling 33,460 acres, with winning bids totaling $870,431. The division did not receive any bids for lease tracts in the North Slope Foothills.

“I’m very pleased to see the level of activity including new entrants in the lease sales. We look forward to working with the successful bidders,” said Natural Resources Commissioner Andy Mack.

“Today’s lease sale results are very encouraging and demonstrate that the state of Alaska remains highly attractive to companies and investors interested in exploring and developing untapped hydrocarbon resources,” said Chantal Walsh, director of the Division of Oil and Gas.

The results are considered interim until the Division of Oil and Gas determines that the winning bidders are qualified and the bids valid. Following bid adjudication, the preliminary results will be posted at http://dog.dnr.alaska.gov/Leasing/SaleResults.htm later this week.