Alaska Dispatch by Rena Delbridge (NGP Photo-left). North Slope oil companies issued a
warning on Wednesday morning: Without significant state and federal changes, investment and new exploration will taper off dramatically in 2010. They also cited huge shale gas reserves in the Lower 48, unfavorable state fiscal policies and massive risk associated with the multibillion dollar cost of a proposed natural gas pipeline as real challenges to delivering Alaska’s natural gas to markets. Spokespeople for majors BP and ConocoPhillips and the smaller Pioneer Resources spoke to several hundred resource industry professionals at the Resource 
Development Council’s annual Anchorage conference. The bottom line? As North Slope infrastructure ages and easy, profitable oil is drained, companies face increased risk they must balance with lower potential rewards. The increasingly complicated, remote and costly Alaska projects under consideration will have to compete for the companies’ investment dollars on a global scale. "Really, there is no easy oil left on the North Slope," Pioneer Natural Resources Alaska president Ken Sheffield (NGP Photo-l, Presentation) said. "Alaska projects face stiff competition for investment dollars." … ConocoPhillips won’t drill exploratory wells in 2010, said Helene Harding (NGP Photo-r, Presentation), vice president for North Slope operations and development. … BP Exploration Alaska President John Minge (NGP
Photo-l) said his company remains committed to unlocking the next pot of North Slope gold — heavy oils 
and natural gas. … Governor. Sean Parnell (NGP Photo-l) has said the state’s tax structure is fair and that producers have yet to approach him with figures demonstrating a need for revisions, but that his door is open. On behalf of ExxonMobil, the final of Alaska’s Big Three producers, Lee Bruce (NGP Photo-r) addressed only progress on two initial wells at the Pt. Thomson field, where legal face-offs between the state and Exxon continue.
ADN Story by Elizabeth Bluemink (NGP Photo). Oil and gas companies on Wednesday gave a mixed forecast on their plans for work in Alaska next year…. For the first time since 1965, ConocoPhillips will not drill a 
new exploration well in Alaska next year. Instead, the company plans to focus its spending on 
developing its Chukchi Sea leases and making improvements at the two big oil fields it runs, Kuparuk and Alpine, said Helene Harding (NGP Photo-above-r), vice president of North Slope operations and development. "We’re shifting our focus offshore," she said. ConocoPhillips spent more than $500 million last year to obtain its Chukchi leases in federal waters. It is now working on offshore development studies with Shell, which spent $2.1 billion to acquire leases during the same lease sale. Shell hopes to begin drilling on its leases next year.
Further NGP Comment: RDC President Wendy Lindskoog (NGP Photo-r), opened the Conference and introduced "Governor Governor Parnell. Parnell emphasized his priority focus on the Importance of Alaska OCS development. Among many other social and economic accomplishments in less than six months in office, he discussed
his interaction with 
Secretary Ken Salazar and the active role he has played in responding to a landslide of Obama Administration initiatives that could delay or quash OCS activity. He did defended the Administration’s support for the state’s gas pipline law (AGIA) and tax policy (ACES) but in the case of the latter, indicated that he would be open to hearing evidence and a case for change. He closed by quoting Alaska’s Federal Government Relations Director, John Katz (NGP Photo) as saying he (Katz) had never seen the State being so actively required to defend its right to develop its own resources. Department of Natural Recources Commissioner Tom Irwin (NGP Photo-r), recalled the Trans Alaska Pipeline diminishnment of throughput from 
2.1 Mmbs/d in 1988 to the current throughput, 2/3 down, and the effect that decline has on a state unrestricted budget that is 90% dependent on oil and gas revenue. "We are absolutely in full sync with Governor Parnell’s OCS position." Shell’s Pete Slaiby (NGP Photo-right opposite Bluemink, Presentation), briefed
the audience on Shell’s 2009 challenges and accomplishments, including some 75 community engagements. He then listed the ‘myths’ environmental activists have used in opposing reasonable OCS development and the answers to those–in most cases–emotional allegations which lack a basis in fact. His 2010 and beyond outlook radiated confidence in the Company’s commitment, but conditioned a successful Alaska OCS program on pending court and DOI and EPA decisions. Consumer Energy Alliance President David Holt (NGP Photo-l, Presentation) briefed the resource development audience on his national non-profit’s efforts to help
elected officials and other decision makers view energy policy through the eyes of consumers. He said that his organization, representing over a hundred national consuming and producing organizations, 
advocated an, "all of the above" approach, emphasizing that the consuming and public interest must rely on fossil fuels to provide an energy basis for a future time when more alternative energy technologies could be employed. His comment that, "The road to energy independence runs through Alaska; the road to economic recovery runs through Alaska", was a theme several other speakers quoted during the balance of the conference.
Secretary Salazar’s Special Assistant for Alaska Affairs, Pat Pourchot (NGP Photo-l), quoted Secretary Salazar’s 2009 public statements affirming his commitment to Federal land use policies that included reasonable oil and gas policies, and went on to announce the opening of a new ‘Climate Change Center’ for Alaska. "President Obama and Secretary Salazar have expressed strong support for Alaska…," he said. -dh
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