8-29-16 Both Alaska and Canada Confront Economic Challenge

David Blackmon NARUC Photo by Dave Harbour_11-14-016

David Blackmon, NGP Stock Photo by Dave Harbour

Alaska Headlamp. Might as well wave the white flag. In another piece, Forbes contributor David Blackmon argues that the DOI Five-Year plan marks a “surrender” in US Arctic policy. According to Blackmon, “As Russia gears up to dominate the Arctic region, having created the world’s largest fleet of ice-breaking ships and even going so far as to plant its national flag at the North Pole, DoD officials have let it be known that…

Frasier Institute:

Taxes, not basic necessities make up largest Canadian household expense
The average Canadian family spends more on taxes than on housing, food and clothing combined, finds Taxes versus the Necessities of Life: The Canadian Consumer Tax Index.

Our Australian energy analyst friend today blogged:

LNG and international gas

Late last week the proponents of the massive Alaska LNG project (BP, Exxon and Conoco) told the Alaskan State Government that they would now not be proceeding to the US$2B FEED stage of this project (they have already spend US$500M on pre-FEED).

The producers offered to sell their gas to the State if it wanted to proceed with the project alone – which bizarrely seems to be the policy of the State’s Governor (note to said Governor – please pay your debts such as the rebates owed to explorers before bankrupting your State).

We think this project now has no chance of going ahead in the short/medium term – like pretty much the vast majority of other green-fields LNG projects around the planet.

In case there are still those in Alaska who believe the world revolves around their remote, untapped resources, note that the Australians in general are watching:

The Australian/Wall Street Journal. ExxonMobil has decided not to invest in the next stage of a proposed natural gas export terminal in Alaska and says it will work with its partners to sell its interest in the project to the state government.

KTVA: State plans to take over gasline project, still unsure how to pay for it

Alaska Journal of Commerce: Study: Investors willing to take lower return could drop AKLNG cost 40%

Juneau Empire: Analysis: Gas price drop renders pipeline questionable

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.