8-3-18 Friday Musings

Friday Musings:



Commentary: Nakedness

We are extremely disappointed with republican Kevin Myer and Alaska’s current democrat lieutenant governor for their continuing support of Governor Bill Walker’s socialized LNG export scheme.  For years we have provided evidence that in wake of lower shale-induced gas prices and extensive LNG export competition the producers have been right in proclaiming that, for an Alaska North Slope gas export project, “now is not the time”.  Alaska’s mostly tidewater based competitors do not have to include the cost of a massive, 800 mile Arctic gas pipeline.  Most offer better logistics, lower labor costs, more moderate working climates.  That’s why so many competing projects are underway while Alaska’s government owned scheme is stuck on high center.  Worse, Alaska is spending precious money on this Quixotic quest while mired in a fiscal crisis in the only high unemployment state in the nation.  The lack of logical, decisive, Alaskan leadership is breathtaking but few are gasping for breath out of fear they will be criticized for observing that, “The Emperor” is wearing no clothes.  See the report below.  -dh

Lieutenant governor candidates discuss LNG, taxes, Stand for Salmon in Kenai

By

…. The candidates were more divided in response to another question submitted by the chamber members: ““What will need to be done to further the AK LNG Project and terminus in Nikiski?”

“I love way you word your question — it isn’t ‘Do we want it or not?’ It’s ‘How do we fast-track it?’” Grunwald responded. “Right now there’s a glut in the market for gas — we’ve got Texas and Lousiana and also Russia is selling tons of gas to China … And we definitely don’t want to deal with the Chinese. Sorry, but they’re communists, and they want to get a hold into our country, and we would be a part of that process. So we want to get private industry involved in partnership with the state.”

Jackson described the gasline plan — on which the state-owned Alaska Gasline Development Corporation has spent about $5 million a month in 2018 and which has an estimated final cost around $40 billion — as “a very expensive project for hopes, and whens, and ifs.” Wright said “the project is not profitable as it sits” and that “it’s something that at this point we need to back off on.”

Mallott and Meyer, on the other hand, agreed that the project “needs to continue on the track that it’s on,” as Mallott said.

“The market will ultimately determine the reality of this pipeline,” said Mallott. “All forecasts so far show that with the state in control and the gas supplied by the owners, with the investment potential already being finalized, that this is the final project and should be strongly supported by all Alaskans.”

Responding to those who said the project needs more private sector involvement, Meyer said the savings from tax deferrals justify a state-led project.

“The Legislature is supportive of this project, and we think it will work,” Meyer said. “But we haven’t seen the financial numbers to know yet if it will work or not. We don’t know who the investors are… But the reason it makes sense for the state to do this instead of the oil companies is because the state gets some tax advantages, federal tax advantages, that the private sector doesn’t. If this project’s going to work, I think the current proposal the governor has is the one that’s going to work.”  (Full Story Here)


Alaska Governor Bill Walker unfazed by China’s tariff threat on LNG  (SEE OUR COMMENTARY)

By:
Elwood Brehmer, Alaska Journal of Commerce

Gov. Bill Walker and Alaska gasline officials insist China’s immediate threat to put a slap an import tariff on U.S. liquefied natural gas should not impact the long-term viability of the $43 billion Alaska LNG Project.

On Friday, the Chinese government announced a proposal to put a 25 percent tariff on roughly $60 billion of U.S. goods the country imports, including U.S. oil and natural gas.

The potential tariffs are the latest move in a tit-for-tat trade dispute initiated by President Donald Trump earlier this year that has slowly been escalating through the summer.

The face-off between the economic superpowers is in sharp contrast to the trade-focused trip Trump and Commerce Secretary Wilbur Ross made to Beijing last November. That trip culminated in a ceremony in which some of the largest companies from each country signed trade deals before Trump and China President Xi Jinping.  (MORE HERE)


Can you believe this report from Must Read Alaska?

DAY PASSES FOR INMATES!

The Department of Corrections has implemented a new policy that allows qualified “super-volunteer” citizens to check inmates out of prison for day excursions. It’s a policy that few know about: Inmates could be the guy standing next to you right now at the coffee shop.


Notes:

Alaska Infrastructure Development Luncheon IV
November 13, 2018
Sheraton Anchorage Hotel
Noon – 2:00 pm (doors open at 11:45 am)
Individual Seats – $45 (WTC members); $55 (non-members)
Tables – $500 (seats 8)

Aves Thompson, Executive Director of the Alaska Trucking Association (ATA), has received a Lifetime Achievement Award at the National Conference on Weights and Measures (NCWM). Since 1905, NCWM’s primary function has been to develop the national standards for weights and measures. Prior to that, there was no uniformity among the various states, counties and cities for testing and approving weighing and measuring devices used in commerce.

Thompson, prior to joining the ATA, was chief and director of the State of Alaska Division of Measurement Standards in Anchorage. The award comes for his 19 years of service to NCWM in several leadership roles.

He was chairman of the 3,500 member conference in 1998-99 during a time of dramatic change. He helped usher the NCWM into the 21st Century through business model changes and outsourcing. He also represented the NCWM at the Asia Pacific Legal Metrology Forum in Bali, Indonesia and the International Organization of Legal Metrology in Paris.

He has been head of the Alaska Trucking Association since 2006.
To learn more about Alaska Trucking Association visit their website: www.aktrucks.org

From  Petroleum News:

Click Here

  • Thomson quest   08/05/2018   The Point Thomson project, operated by ExxonMobil, was designed to produce 200 million cubic feet of recycled gas and 10,000 barrels of condensate a day. ExxonMobil continues to face technical challenges in the high-pressure sands of the eastern North Slope field. The company is determined to conque….
  • Conoco earnings up   08/05/2018  ConocoPhillips reported $1.3 billion in second-quarter adjusted earnings on July 26, compared to second-quarter 2017 adjusted earnings of $178 million, the company said July 26 in reporting results for the quarter. For Alaska, the figures are adjusted net income of $418 million, compared to $167 mi….
  • BP profits climbing   08/05/2018   In a July 31 earnings call, reporting BP’s results for the second quarter of this year, the company’s group chief executive, Bob Dudley, commented that BP’s underlying global profit for the quarter had been $2.8 billion, compared with $2.6 billion in the first quarter and $700 million a year earlier….
  • Oxy taking hard look at Alaska? Crude oil price predictions upbeat  08/05/2018  Rumors that Occidental Petroleum is taking another look at Alaska have surfaced in the past few weeks – the latest spurred by the state’s upcoming SALSA lease sale. Melissa Schoeb, Oxy’s vice president of corporate affairs, told Petroleum News July 31 that as a matter of company policy she could not….
  • Pikka, Willow API gravity – 08/05/2018 (Login to read Full story) An item in the July 29 issue of Petroleum News, “Narwhal, Willow in Nanushuk; investors unworried w. oil price,” confused the API gravities of Pikka/Horseshoe oil and Willow oil. Willow oil is lighter, with an API gravity of 42 to 43, while Pikka/Horseshoe is heavier oil, with an API gravity of 30…..
  • SALSA — tract groupings, not prospects – 08/05/2018 (Login to read Full story) The Alaska Division of Oil and Gas has pointed out that wording in a story, “Bids on blocks,” in the July 29 issue, is not accurate. The story said the state was acting as an aggregator with the SALSA, Special Alaska Lease Sale Areas, to be offered in the fall areawide oil and gas lease sales and r….
  • DOE expedites small-scale export approvals– 08/05/2018 (Login to read Full story) The U.S. Department of Energy has announced that it is speeding up the approval process for the small-scale export of natural gas, including liquefied natural gas, from U.S. export facilities to non-free trade agreement countries. The regulatory change says that DOE will approve an application for t….
  • Stork awarded contract renewal by Ecopetrol– 08/05/2018 (Login to read Full story) Fluor Corp. announced July 26 that Stork, part of Fluor’s diversified services segment, was awarded a five-year contract renewal by Ecopetrol S.A. to operate and maintain its surface facilities on the Cusiana and Cupiagua gas fields in Colombia. These facilities process 30 percent of the Colombian i….
  • Lynden gets it done for North Slope customer – 08/05/2018 (Login to read Full story)Lynden International said July 20 that its Anchorage crew has coordinated many charters, but rarely do they involve one of the world’s largest commercial cargo aircraft, the Antonov 124. “When one of our customers ‘rings the bell’ and needs an 82,000-pound,60-foot-long, 11-foot-high mud pump house f….
  • Nabors announces second quarter 2018 conference call – 08/05/2018 (Login to read Full story) Nabors Industries Ltd. invites you to join Anthony G. Petrello, chairman and CEO, and William Restrepo, CFO, Aug. 1 at 10 a.m. Central Time for a discussion of operating results for the second quarter ended June 30. Nabors will release earnings after the market closes on July 31. Please call 10 to 1….
  • Exxon profit surges, just not enough – 08/05/2018 (Login to read Full story) Rising oil prices pushed second-quarter profit at Exxon Mobil Corp. up by 18 percent, but the results July 27 fell short of Wall Street expectations, and shares dropped in early trading. Exxon earned $3.95 billion in the second quarter, or 92 cents per share. Analysts were looking for $1.26 per shar….
  • DA pipeline builder wants suit dismissed – 08/05/2018 (Login to read Full story) The company that built the Dakota Access oil pipeline wants a North Dakota judge to throw out a lawsuit over its ownership of agricultural land, claiming it’s not violating a Depression-era state ban on corporate farming that it calls unconstitutional anyway. Attorneys for Dakota Access LLC also ask…

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About the Author:

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.
By |2018-08-03T15:06:26+00:00August 3rd, 2018|AGDC, Alaska's Fiscal Crisis, Commentary, Government Waste, LNG|0 Comments