6-10-16 New Worldwide Energy Report Highlights Need For Competitive - Not Predatory - Government Policies

6-10-16 New Worldwide Energy Report Highlights Need For Competitive — Not Predatory — Government Policies

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Keith Meyer, President, Alaska Gasline Development Corporation

Alaska must not be facing a ‘fiscal crisis’ after all. With HH gas less than $3 and some renegotiated Asian LNG gas deals in the $5 range and Alaska LNG sold in Asia needing 100-150% higher landed prices than that, here is the latest headline from the Alaska, government-owned LNG project company, AGDC: “New AGDC president to make half million dollars a year….” Socialism may not yet be in full bloom on the Last Frontier…but its Alaska spring sprouts now range from pipeline/tanker transportation to a government organized gas utility to subsidizing Medicaid and Obamacare entitlements — amid massive, deficit spending. Don’t blame or cry for Alaska; after all, how can lessons from Venezuela & Argentina in an equatorial climate have any relevance to Arctic Alaska?

Note, we consider Meyer to be an outstandingly well qualified LNG project CEO. We hope and expect that his impressive background will, someday, be once again directed toward another free market enterprise. -dh

From our Ak-Headlamp friends TODAY: The comment period on the Bureau of Ocean Energy Management (BOEM) outer continental shelf proposal closes in a week! Tell the BOEM what you think here.

Our anonymous, Mid Atlantic energy analyst friend…

…tells us this morning that oil & gas prices continue to trend upward. He says, “Both crude oil and natural gas are showing surprising strength technically, with much more pressure to the upside than downside at this point. … No matter how one looks it, NG appears to be making a clear breakout. The next major resistance would seem to be in the $3.00-3.50 range.

Tara Stevens of BP today provides us with the company’s recently released annual Statistical Review of World Energy 2016. We have provided these valuable reports to our worldwide readers for many years.

The 2016 report provides useful energy industry data and trends. In our opinion, it offers some good global context within which to consider Alaska’s oil and gas competitive position. In particular, this report reinforces our repeated caution to Alaska and Canadian energy decision makers that they need to be more mindful of world competition.

The report carefully analyses the challenging world in 2015 of 1) low energy prices, 2) improved technology leading to greater supply availability and 3) stagnant demand.

We would add an observation that improved technology combined with worldwide alternative energy subsidies (i.e. at taxpayer/ratepayer expense) continues to diminish fossil energy demand, though subsidies for alternatives in Europe seem to be losing a little favor.

In our view, decision makers will do their constituents no favors if they continue to focus on higher oil & gas taxes (i.e. Read Alaska) and regulations (i.e. Read U.S. Federal) and permit conditions on industry (i.e. Read NEB) … and taxpayer/ratepayer subsidies for otherwise uneconomic energy alternatives.

This is a new world of modest demand, dynamic technological improvements and higher prospective reserves. We believe it is a world that government policy makers should wisely consider to be HIGHLY COMPETITIVE. With that understanding they could then develop reasonable and predictable, tax and regulatory policies to attract — not discourage — energy industry investment.

In this way, governments of energy producing areas could produce a renaissance of free market prosperity, jobs and reasonably restrained bureaucracies.

What a pleasure it would be to study a “2017” or “2018 Statistical Review of World Energy” reflecting a growing adherence to such enlightened policies.

Find more information and the current report here. -dh

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.