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Commentary: Yesterday, Alaska's Deputy Commissioner of Revenue, Bruce Tangeman (NGP Photo), provided updates on the, "More Alaska Production Act & Gasline Heads of Agreement". Here is the video and a link to the presentation .pdf. — In a similar vein, yesterday we were queried by a Lower 48 oil and gas publication on challenges we perceive Governor Parnell faces. See our response, below. See EIA Comment. -dh
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Juneau Empire Op-Ed by Rep. Eric Feige (NGP Photo). As Sen. Mark Begich and Rep. Andy Josephson have recently opined about the Pebble Mine, I offer some of my own thoughts in response to the rhetoric of politicians more interested in inciting fear and “us versus them” thinking over facts. (This Op-Ed is a responsible perspective on the "rule of law" issue that threatens all construction projects and violates constitutional protections, as we have long held. Kudos to Representative Feige. -dh)
Note: Over the years we have developed a high regard for the unbiased, professional and diligent work of the NEB. (We did not have that view of the NEB in the late 1970s, though that is another story.) While accidents and citizen response to emergencies can be disconcerting, responsible companies like TransCanada and agencies like the NEB have shown why the public interest is protected–even in the most challenging circumstances. -dh
National Energy Board Chair & CEO Gaétan Caron (NGP Photo) commented on recent media reports, this week. "I wish to correct some factual inaccuracies in a media story on the NEB’s investigation report into a 2009 pipeline rupture on TransCanada’s Peace River Mainline that was published on February 4, 2014." Read more, here. Reference this CBC story. -dh
Journal of Commerce by Tim Bradner. State legislative committees continue to work their way through Gov. Sean Parnell’s proposed natural gas pipeline deal with North Slope producers and TransCanada Corp.
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A note on Weiss’ claim that oil companies would reap big profits from exports: he conveniently forgets to add on the cost of transporting the oil overseas, which would more than make up for the roughly $10/barrel price difference. The reason the export ban needs to be lifted is because it provides an incentive for more oil production here at home. Without new markets, once U.S. refineries can’t handle any more domestic crude oil, producers will have no option but to stop looking for new oil. We suspect that’s really the outcome Weiss and the Center for American Progress want – and why they want to leave the antiquated ban in place.
Find the complete video of the FOX News segment here.
We received an email from an energy publication journalist friend this week: "Hi Dave: How’ve you been? Do you think Sean’s new plan will work? J….."
We replied this morning: "Good to see you’re still kickin’, J….
"The Governor has a difficult challenge. With a backdrop of falling production upon which over 90% of the state operating budget and nearly half the state’s economy is based, there are continuous pressures to increase the budget. Some areas of the state are facing crippling fuel oil prices and natural gas shortages, prompting cries for government subsidized energy projects. Meanwhile, the state has several billion in state savings accounts – money needed for subsidizing energy and other capital projects – balanced by over $10 billion in public employee pension fund liabilities. (Note: this does not include the some $40 billion in the permanent fund, which is not subject to legislative appropriation.)
"The Governor succeeded, with help from a republican controlled legislature, in passing oil tax reform last session to boost exploration and development. Soon after the session, democrats and environmentalists solicited sufficient signatures to put an oil tax reform repeal referendum on the ballot in the upcoming, August primary election. That jeopardizes more oil from state lands on the North Slope.
"When Shell postponed its Arctic OCS plans for this summer and when DOI closed off half of the National Petroleum Reserve – Alaska to petroleum exploration and development, throughput for the Trans Alaska Pipeline System (TAPS) from federal lands was further threatened.
"Solution: The leadership of the state needs to find a ‘golden mean’ that provides new TAPS throughput from state lands and new TAPS throughput from federal lands. It needs to do this while controlling spending, neutralizing the public pension fund unfunded liability and assuring that citizens in vulnerable areas do not suffer for lack of energy—among other challenges.
"Accordingly, we have great empathy for the Governor and Legislature right now, knowing that their challenges are more in the category of a Gordian knot than of a routine Legislative session.
"Keep in touch, and, thanks for asking!"
Dave
TODAY'S HOT ENERGY LINKS FROM CONSUMER ENERGY ALLIANCE:
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The Roger Hedgecock Show: Michael Whatley (NGP Photo) Discusses the Keystone XL Pipeline
Houston Chronicle: Energy secretary backs mix of power sources
During a visit to San Antonio Thursday, Energy Secretary Ernest Moniz said President Barack Obama's push for use of all energy sources – his "all of the above" energy policy – is the best solution to meet the nation's power needs.
MSNBC: Ed: Fighting for a safer way to transport US oil
Recent oil train disasters make safety a top priority for those supporting the completion of the Keystone Pipeline. Ed Schultz and environmentalists discuss.
Bloomberg: Redford: Alberta Won’t Play Emissions Chicken on Keystone
Alberta Premier Alison Redford, who has lobbied the U.S. to approve the Keystone XL pipeline, says her oil-rich Canadian province won’t toughen rules to cut carbon emissions from crude producers until the U.S. takes similar steps.
Reuters: Green groups step up opposition to eastward Canada pipeline
Environmental groups are stepping up efforts to convince Canadian authorities to reject a major new pipeline to the east coast, with one think tank saying on Thursday that filling the new line would generate up to 45 percent more carbon emissions than the controversial Keystone XL.
National Geographic: Keystone XL Assessment Report Finds No Significant Environmental Objections
The State Department issued its final environmental impact statement on the Keystone XL pipeline, which echoed findings in previous analyses that the pipeline would lead to no substantial increase in greenhouse gas emissions. It found that approximately 147-168 million metric tons of carbon dioxide would be created by producing, refining and burning the pipeline’s oil. The report’s release kicks off a 30-day public comment period as well as a 90-day “national interest determination” period during which eight federal agencies are allowed to offer their views. Ultimately, the decision on the permit for Keystone XL rests with President Barack Obama.
Slate Magazine (blog): AFL-CIO Backs Keystone XL
The AFL-CIO is moving this winter to be support the construction of the Keystone XL pipeline.*
This has some people surprised on the grounds that the project is set to create very few permanent jobs. The issue here, however, is all about the building trades unions. The building trades have been backing Keystone for a long time because from the viewpoint of a construction worker all jobs are temporary jobs. Actually building the pipeline will involve thousands of construction workers.
The Wall Street Journal: Cross-Canada Pipeline Will Boost Emissions, Report Says
A report says a planned Canadian pipeline project would increase emissions even more than Keystone XL. But these pipelines’ impact on climate change remain a matter of debate.
The Columbian: Tesoro acquiring safer rail cars for Vancouver terminal
Tesoro Corp. said Thursday it has begun replacing older cars in its oil rail car fleet with safer, post-October 2011 cars. The company said it is committed to have its full fleet replaced by the middle of this year, before construction of its proposed oil-by-rail terminal at the Port of Vancouver.
Pittsburgh Business Times (blog): Consol: Marcellus Shale program responsible for increase in reserves
Consol Energy (NYSE:CNX) announced Thursday it has added 1.63 trillion cubic feet equivalent (tcfe) of proved of natural gas reserves through extensions and discoveries.
Associated Press: Executives hail project agreement as significant
Executives from the North Slope’s major oil and gas companies on Wednesday hailed an agreement with the state as a major step forward in pursuing a major liquefied natural gas project. While they made clear there is still a long way to go in determining whether a project will be successful, they said the effort has the support of senior managers and the parties are at a place they’ve never been before in efforts to commercialize Alaska gas.
Washington Free Beacon: Photos Debunk Key Anti-Fracking Claim
Newly released photos of a flaming water well have renewed skepticism of claims by environmental activists and federal regulators that hydraulic fracturing made drinking water supplies in Parker County, Texas, flammable.
UPI: Oil, gas powering manufacturing growth, API economist says
American Petroleum Institute chief economist John Felmy said increased U.S. oil and gas production is driving growth in the manufacturing sector. Felmy said new drilling technologies like hydraulic fracturing and horizontal drilling have put the United States "in a position of strength" economically.
E&E News: Greenspan shoots down oil-exports talk
The man once famous for moving global markets with his words has declined to endorse unrestricted crude oil exports from the United States. Alan Greenspan, former chairman of the Federal Reserve, was invited by an audience member during an oil and gas conference here yesterday to give a plug in favor of a rule change that would allow the industry to export greater volumes of domestically produced crude oil to markets abroad.
Columbus Dispatch: Oil drillers pay for fracking workshops for teachers
Think of oil and gas drilling like removing the filling from a Twinkie, Ohio science teachers were told in an industry-funded workshop last week. Each teacher was handed a snack cake and a plastic straw. Put the straw in the wrong place, and you don’t get much cream. Put it in too many places, and you destroy the Twinkie. The teachers began poking around.
Capital Gazette: Bill to ban fracking in Maryland lacking support
A bill to ban fracking, the controversial method of extracting natural gas from deep layers of shale rock, landed with a thud in the Maryland Senate on Tuesday. SB 360 meant to prohibit the practice of hydraulic fracturing, perhaps preempting a state commission that has been weighing the issue since 2011 and is due to conclude its work this summer.
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