2-23-17 Oil/gas Investing in a fiscally challenged state run by a government considering energy industry tax increases in a low price environment!

We always appreciate Ak-Headlamp’s analysis. Based on what you read today, we wonder if you will be buying oil stocks or selling? You certainly wouldn’t be inclined to invest large sums of your own money in a remote, Alaska North Slope pipeline/LNG project run by temporarily elected and appointed politicians and bureaucrats, would you? You would? Well, how about if that state were teetering on fiscal collapse and considering raising taxes on the oil industry in a low price environment? -dh

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Alaska Headlamp Commentary

Yesterday, the Alaska State Senate joined the Alaska House of Representatives in approving House Joint Resolution 5, urging the United States Congress to pass legislation to open the coastal plain of the Arctic National Wildlife Refuge (ANWR) to oil and gas development. The U.S. Geological Survey estimates the coastal plain of the refuge holds 10.4 billion barrels of oil and possibly as much as 16 billion barrels. It’s North America’s greatest prospect for conventional oil production, according to Sen. Lisa Murkowski.

“The ability of the oil industry to safely operate in the Arctic is evidenced by the responsible development of Prudhoe Bay and other fields,” said Rep. Westlake. “I have no doubt that legislation can be crafted in Congress that can allow for development in ANWR while protecting the natural environment and the subsistence resources that are vital to my region.”

According to Sen. Murkowski’s address to the legislature, “We have opportunities folks. At the same time we are focusing on oil and gas, we must do more to work to realize Alaska’s world-class mineral potential, whether we are talking about a gold mine in Southwest, a graphite deposit near Nome, or rare earths here in Southeast.” If you missed any of Sen. Lisa Murkowski’s address, check out the link here.

In a letter to EPA Administrator Scott Pruitt, Rep. Lamar Smith, R-Texas, chair of the House Science Committee, charged the agency with overstepping its statutory authority under President Barack Obama on the proposed Pebble project. Given the committee’s work, “as well as President Trump’s commitment to swift and lawful permitting decisions, the Committee urges you to rescind the 2014 decision and pursue the regular order of permitting for this and all projects that require permits under Section 404(c)” of the Clean Water Act, Rep. Smith wrote. Smith called the EPA’s decision “unprecedented” and the scientific assessment “questionable.”

According to reports, the oil-sands operations in northern Alberta are among the costliest types of petroleum projects to develop. In addition, Canadian crude sells for less than benchmark U.S. crude because of the added cost to ship it to American refineries and an abundance of competing supplies from shale fields. Exxon Mobil Corp., for example, slashed proved reserves the most in its modern history after removing the entire $16 billion, 3.5-billion-barrel Kearl oil-sands project from its books on Wednesday. That was followed by ConocoPhillips’ announcement that erased 1.15 billion oil-sands barrels, plunging its reserves to a 15-year low.

Alaska: The Most Dangerous State in America

An investors paradise?

(Comment: How could this be when Alaska has among the most subsidized welfare systems in the country, among the costliest education systems, the most non-profits per capita, the highest per capita spending and a crashing economy? Answer: maybe Alaska spends too much time and public money building a ‘nanny state’ and not enough effort supporting private enterprises and personal responsibility. -dh)

By Samuel Stebbins, Michael B. Sauter, Evan Comen and Thomas C. Frohlich January 12, 2016 6:56 am EST – WALL STREET

Violent crime has become less common in the United States in recent years. There were slightly more than 1.1 million reported incidents in 2014, or 366 incidences per 100,000 residents, a 9.4% decrease from the 2010 rate of 404 violent crimes for every 100,000 Americans. While the nation is becoming safer, many states have a higher violent crime rate than the national average rate, with the 10 most dangerous states reporting a rate of at least 445 violent crimes per 100,000 people.

Based on violent crime data from the Federal Bureau of Investigation’s (FBI) Uniform Crime Report, 24/7 Wall St. reviewed the 10 states with the highest violent crime rates. Violent crimes include murder, rape, robbery, and aggravated assault. Of the 50 states, Alaska is the most dangerous, with 636 reported violent crimes for every 100,000 residents.

1. Alaska
> Violent crimes per 100,000: 635.8
> Population: 736,732
> Total 2014 murders: 41 (11th lowest)
> Poverty rate: 11.2% (6th lowest)

Alaska’s violent crime rate is the highest of any state in the country. While murders and robberies are not as common in Alaska as they are in many of the other most dangerous states, rape and aggravated assault are highly prevalent. With roughly 105 reported rapes for every 100,000 state residents, the incidence of rape in Alaska is the highest of any state in the country and nearly triple the corresponding national rate. The rate of aggravated assault in Alaska is also disproportionately high. About 440 assaults are reported for every 100,000 people, the second highest rate in the country and nearly double the corresponding national rate.

Unlike most states with a high violent crime rate, people in Alaska are much less likely to be impoverished than most other Americans as the state has the sixth lowest poverty rate in the country. Also, only 3.9% of Alaskan households earn less than $10,000 annually, the second smallest share of any state in the country after only New Hampshire.

More here….

About the Author: wpnorthern

Dave Harbour, publisher of Northern Gas Pipelines, is a former Chairman of the Regulatory Commission of Alaska, a Commissioner Emeritus of NARUC, NARUC's Official Representative to IOGCC and Vice Chairman of NARUC's Gas Committee. He served as Gas Committee Chairman of the Western Conference of Public Service Commissioners. He also served as commissioner of the Anchorage Bicentennial Commission and the Anchorage Heritage Land Bank Commission. He earned a Bachelor of Arts Degree: English, at Colorado State University, a Master of Science Degree: Communications-Journalism at Murray State University and graduated from Utility Regulatory School for Commissioners at Michigan State University. He served as a Vice President for Communications and Public Affairs at Alaska Pacific University, taught bank marketing classes at the University of Alaska and was an English teacher at Los Alamos High School. Harbour served in ranks of Private - Captain during a 4-year assignment with the Army in Korea, Idaho, Georgia and Fort Meade and received the Meritorious Service Medal among other commendations. Harbour is also a past Chairman of the Alaska Council on Economic Education, the Alaska Oil & Gas Association Government Affairs Committee, the Anchorage Chamber of Commerce, the Export Council of Alaska and the Department of Commerce's District Export Council. He is a past President of the Alaska Press Club, American Bald Eagle Foundation, Consumer Energy Alliance-Alaska and Common Sense for Alaska. Harbour was instrumental in founding the American Bald Eagle Research Institute (UAS), the Alaska Support Industry Alliance, the Downtown Anchorage Business Partnership, and Arctic Power. He also served as CEO of several small Alaska organizations, including the Anchorage Parking Authority and Action Security, Inc. Harbour is also Chairman Emeritus of the Alaska Oil & Gas Congress. Harbour's wife, Nancy, is a professional, performing arts administrator and his three boys, Todd, Benjamin and William work in the fields of environmental management, energy marketing and medicine.