Alaska | Alaska Politics | Oil & Gas

Emails show public divided on oil industry tax cut plan

by Becky Bohrer | ADN
JUNEAU — For months, Gov. Sean Parnell has expressed confidence in his plan to cut oil production taxes as a way to spur new development. But he apparently has not convinced a significant number of Alaskans. A review of emails received by his office shows a public deeply divided on whether it’s the right thing to do.

The records showed roughly 63 writing in favor and 56 against, with the rest asking questions, taking no clear position or digressing to another issue. A state public records official said there are some additional records that could be made available as early as this week.

Read the full article in the ADN.

Alaska | Alaska Politics | Oil & Gas

ACES oil tax will take economy to the brink
How can rational people see ACES as anything but an economy killer?

by Paul Jenkins | ADN
Those who understand that Alaska’s Clear and Equitable Share oil tax is draconian dreck much adored mostly by Palinistas, Democrats and other oil industry haters can only marvel at the folks who loudly, even belligerently, defend the tax.

Read the full article in the Anchorage Daily News.

Alaska | Energy | Federal Regulation | Oil & Gas

Governor Issues Statement on American Energy

Gov. Sean Parnell

Press release
JUNEAU–Governor Sean Parnell today issued the following statement on the importance of American energy development, in response to comments President Obama made while traveling in Brazil:

“The federal government should be focusing on increasing responsible energy development in America, not in Brazil. When President Obama said the U.S. stands ready to be ‘one of Brazil’s best customers’ when its new oil resources are developed, he demonstrated a fundamental misunderstanding of the critical importance of American energy security and the availability of existing domestic resources, including in Alaska.”

Read more->

Alaska | Endangered Species | Federal Regulation | Oil & Gas

Too Many Bears
Who says polar bears don’t like oil wells?

by Jim Burke | ALASKA DISPATCH
NORTH SLOPE–Construction workers for ENI Petroleum had just finished building the ice road connecting their land-based operations to a nearby island when a worker made a discovery that would bring them to a halt for days. There, on the edge of the manmade island not too far from where the road entered, was a polar bear. This wasn’t just any polar bear. On Friday, there, in the Beaufort Sea close to an oil industry drilling project, appeared a mother bear and her cub.

Read the full story in the Alaska Dispatch.

Alaska | Federal Regulation | Oil & Gas

Alaska Pipeline Operator Calls for Political Action
Alyeska official testifies that consequences of reduced oil flow are dire.

The Associated Press
JUNEAU — The state’s economic artery, the trans-Alaska pipeline, could require expensive upgrades or even shut down if more oil doesn’t begin coursing through it soon, the line’s operator said Friday.

Read more in the ADN.

Alaska | Economy | Endangered Species | Federal Regulation

Alaska Files Suit over Habitat Designation
USFWS disregarded federal law by including inappropriate geographical areas

Our suggestion...

State of AK press release
JUNEAU–The State of Alaska has filed suit against the U.S. Fish and Wildlife Service (USFWS) over its unprecedented, expansive designation of critical habitat for polar bears, which have been listed as “threatened” under the Endangered Species Act (ESA). In a separate suit, the state is challenging the decision to list these bears as threatened.

The designation of 187,157 square miles of critical habitat for the polar bear, an area larger than 48 of the 50 states, is unnecessary in that the agency itself acknowledges that the designation will not provide substantial protection for the animals. Read more->

Alaska | Oil & Gas | Politics

The pipeline’s flow problem
Shutdown grows more likely as oil production falls

Sen. John Coghill | FAIRBANKS DAILY NEWS-MINER
FAIRBANKS–My Senate district includes nearly 400 miles of the trans-Alaska pipeline system, the Valdez shipping terminal and three of the four refineries operating in Alaska. The communities along the pipeline receive property tax revenue, as does the state. We all prosper from having this oil delivery system as well as from the value of the oil.

When the pipeline shut down in January, it almost became a frozen stick of wax. With water, wax and oil as thick as molasses going quickly below freezing, the engineers had a real dilemma in trying to restart the pipeline and deliver to the refineries before they had to shut down their facilities.

Imagine if that pipe had frozen beyond being able to get it going: What would be the cost to Alaska? America? The price of heating fuel to your home? The price of fuel to the Army and Air Force? The cost of fuel to the two largest airports in Alaska, plus the schools, public safety, roads, home values, refineries closing down?

Read the full article in the Fairbanks Daily News Miner.

Alaska | National politics | Oil & Gas

Murkowski urges action to boost Alaska oil production
Opening the Arctic National Wildlife Refuge back on the table

by Becky Bohrer | AP
JUNEAU–In a sobering message to a joint session of the Legislature, Murkowski said Alaska cannot afford to take its future for granted. While the state currently enjoys billions of dollars in savings, it faces forecasts of declining oil production — a huge worry given that oil is Alaska’s economic lifeblood.

She said the unrest in the Middle East — and potential for disruptions in the oil supply — has put the issue of opening the Arctic National Wildlife Refuge to development back on the table.

Read full text of Sen. Murkowski’s speech to the Alaska Legislature.
Read full article in the ADN.

Alaska | Alaska Politics | Economy

Economist says state spending too much of its oil money
BUDGET: State poised to spend $500m more than what is prudent.

Scott Goldsmith, Ph.D., Professor of Economics

By Elizabeth Bluemink | Anchorage Daily News
A leading state economist says Alaska is saving too little of its oil wealth for future generations.

The good news is that Alaska is rich enough — in oil wealth savings and in petroleum reserves — that it can afford to spend $5 billion of its oil wealth every year, even after the oil fields die away, said Anchorage economist Scott Goldsmith.

The bad news: The state is likely to spend more than $5.5 billion in petroleum dollars in the coming budget year, he wrote in a report published by the University of Alaska Anchorage’s Institute for Social and Economic Research on Tuesday.

Read more in the Anchorage Daily News.
More information: UAA Institute of Social and Economic Research.

Alaska | Federal Regulation | Oil & Gas

Begich Comments on Deepwater Horizon Commission Report

Press release:
U.S. Sen. Mark Begich commented on the report of the National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling and its recommendations intended to improve oilfield safety and strengthen protection from and response to future spills. He specifically cited the Commission’s recommendations on moving forward on Arctic energy development and was pleased the Commission found a moratorium on development in the Arctic is not justified.

Read Sen. Begich’s entire press release.

Alaska | Alaska Politics | Oil & Gas

Oil Tax Structure Must Be Competitive
Why oil companies will go elsewhere when we get too greedy

by Frank Murkowski, Juneau Empire
JUNEAU–At a $100 market price for a barrel of oil the current marginal tax rate for the Gulf of Mexico is 43%, for Alberta it is 55%, and for Alaska under ACES it is 85%. Alaskans simply cannot compete with the Gulf of Mexico for oil and gas exploration and development capital by imposing a tax that is twice the amount charged there. Read more->

Alaska | Economy | Federal Regulation

Governor Outlines Strategy to Fight Overreach
“Federal agencies act more like the watchmen of a locked warehouse.”

Governor Sean Parnell

FAIRBANKS– In a speech before hundreds attending the Rotary Club of Fairbanks, Governor Sean Parnell today focused on how recent federal restrictions have crippled resource development and blocked jobs for Alaskans. From the offshore drilling moratorium, to ocean zoning, to the effort to lock up the National Petroleum Reserve-Alaska, the governor outlined numerous ways Washington is encroaching on Alaska’s sovereignty in developing its natural resources.   Read more->

Alaska | Federal Regulation | Oil & Gas

Congressman Young introduces bill to delist polar bears
Polar bears, ANWR, conservation bills introduced.

Congressman Don Young

Press Release

WASHINGTON D.C.–H.R. 39, to delist the Polar Bear – this legislation would delist the polar bear as a threatened species under the Endangered Species Act of 1973.

“Listing an animal as ‘threatened’ despite its increasing populations is absurd and incredibly irresponsible,” said Rep. Young. “This listing threatens the economic well-being of hardworking Alaskans. My legislation sets America back on the path to responsible development and prosperity.”

Read more->

Alaska | Energy | Oil & Gas

Locking up Alaska:
ANWR wilderness designation bill introduced in US House

by Mary Pemberton, Associated Press
WASHINGTON D.C–Rep. Edward Markey D-Mass., on Wednesday reintroduced a bill to designate the Arctic National Wildlife Refuge as a wilderness area. If successful, the move would put the refuge — and its estimated 11 billion barrels of recoverable oil — beyond the reach of oil companies perhaps forever.

Read more in the Anchorage Daily News

Alaska | Environment | Federal Regulation | Oil & Gas

Another Drilling Smackdown
The Whitehouse loses again in court

This just in from the Wall Street Journal Opinion page:

Federal Judge Martin Feldman in New Orleans last week unceremoniously dumped the 10 safety regulations Mr. Salazar slapped on the drilling industry in June in the wake of the spill. The judge found Interior had ignored clear rule-making requirements. Public “notice and comment were required by law. The government did not comply,” and so the rules are void, declared Judge Feldman, who is the same judge who previously threw out the Administration’s deep water drilling moratorium as unjustified by either science or safety.

Read more at Wall Street Journal: Opinion Journal

Alaska Politics | Federal Regulation | Oil & Gas

ANWR Legislation: Alaska’s HJR 18

With the political climate in Washington D.C., it’s likely someone will be trying to lock up ANWR from any resource development.  The Alaska Legislature is considering a resolution asking Congress to think twice about taking any such restrictive action.  Here’s the full text of HJR 18: Read more->

Nate Beeler
The Columbus Dispatch
May 16, 2012
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