HQ Yellowknife. Bob McLeod (NGP Photo) said the Mackenzie Gas Project would translate to billions of dollars for the NWT and Canadian economy, calling it a “nation building endeavour.”
cent within two years on an oversupplied North American market and a shift toward drilling more lucrative oil prospects, according to a new report. … Fevered drilling for shale gas in the United States flooded North American markets at a time when demand was soft because of the recession. As prices fell on abundant supply, producers steered their drilling programs toward more profitable oil and natural gas liquids assets. "Natural gas production in Canada has been gradually declining as a result of these two trends," said chief executive Gaetan Caron (NGP Photo), in a statement. "This is expected to continue unless a closer balance between demand and available supply can be reached, pushing natural gas prices up."
Commentary: We applaud
Governor Sean Parnell’s (NGP Photo) courage and consistency in protecting the public interest as represented in his letter to Senate leaders yesterday clarifying his position on Coastal Management Program legislation lingering in the last week of a special session. We admire Senator Cathy Giessel (NGP Photo) for her floor speech this week during the special session. -dh
On the heels of this week’s Wall Street Journal article detailing Alaska’s critical relationship to the declining throughput of the Trans Alaska Pipeline (TAPS), Natural Resources Deputy Joe Baylash (NGP Photo) told an Alaska Support Industry Alliance audience yesterday that, "The situation is urgent."
TAPS is an economic lifeline for Alaska, providing over 85% of the state government’s operating revenue and sustaining over a third of the entire economy. With TAPS oil volumes (throughput) declining at a 6-7% annual rate, the days of that facility are numbered unless new volumes can be discovered and brought into production. He said that one of the
Administration’s principle goals is, "…arresting the declining throughput of TAPS."
Baylash said that, "every day we are seeing a new record for low throughput," and that upcoming cold winters could create conditions leading to a premature shutdown. This is because lower throughput lengthens the time for a barrel of oil to move 800 miles from the Alaska North Slope to the ice free port of Valdez. Slowing the passage of oil causes the temperature of oil to decline in the insulted pipeline, especially during a very cold winter. Baylash said that in recent winters, Alaska has," dodged a bullet," noting that winter problems become more serious as oil temperatures decrease due to declining throughput.
Baylash said that to increase throughput, action at the state and federal levels was required (as we have noted herein over the last several years). He said that the state’s adoption of a more competitive tax regime would increase incentives for new work on the Alaska North Slope. He said that Governor Parnell would support a balanced coastal management program law now being debated in a special session, but would veto a bill that was not in the interest of the state. "Alaska has gone above and beyond other states when it comes to local input in coastal management programs." He said the state was dedicated to continue its fight against federal obstruction which contributes to the lack of new pipeline throughput from federal lands.
ADN. A 90-minute public forum on gas line benefits for Alaska’s economy that was held this week at
the University of Alaska Anchorage will be replayed on cable television. The forum will be rebroadcast at 8 and 11 p.m. Friday, 1 p.m. Sunday, and 11 a.m. and 5 p.m. Monday on the same TV channels statewide that carry Gavel to Gavel. Panelists included Larry Persily (NGP Photo), federal coordinator, Alaska Natural Gas Transportation Projects; Scott Goldsmith, economics professor, Institute of Social and Economic Research, UAA; Brian Rogers, chancellor, University of Alaska Fairbanks; and Bill Van Dyke, petroleum engineer, Petrotechnical Resources Alaska. Thanks to Persily’s Communications Director, Jennifer Thompson, we have this story from agency writer, Bill White. * The video is on the agency’s home page now.
ADN. Shell Oil as expected has submitted an offshore exploration plan for up to six exploratory wells in the Chukchi Sea off Alaska’s northwest shore over the next two years.
Politico: House completes oil drilling trifecta. The House Thursday afternoon passed the third of three GOP offshore drilling bills as lawmakers continue to battle over high oil and gas prices. Thursday’s bill would direct the Obama administration to open waters off Alaska, California and much of the Atlantic Coast to offshore drilling. The Interior Department would have to craft a five-year lease plan that meets the goal of producing 3 million barrels of domestic oil a day by 2027. Wednesday, the House passed legislation to expedite drilling permits in the Gulf of Mexico. Last week, lawmakers approved a bill to force new lease sales for areas in the gulf and off the Virginia coast.
Senator Cathy Giessel’s Floor Speech:
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