The shale oil revolution in the lower-48 has finally impacted Alaska.
On April 11, the 940 foot oil tanker Alaskan Explorer returned to Valdez from a two week journey to a refinery in Washington state after delivering almost 1,000,000 barrels of Alaska crude from the North Slope. For the first time since the Trans Alaska Pipeline System (TAPS) began transporting North Slope crude to the Alyeska Pipeline oil terminal at Valdez, 300,000 barrels (12,600,000 gallons) of Alaska North Slope crude oil was being returned to Valdez for the first time. (1 barrel = 42 gallons)
The day the crude oil was returned to Valdez by the Alaska Explorer, the oil storage tanks at Alyeska’s oil terminal were 90% full. The oil storage tanks have not been this full since the start of oil flowing down TAPS. Having to return oil added to the lack of capacity. This is a serious situation with respect to maintaining the oil flow from the North Slope.
One of the major concerns of Alaska’s politicians has been when will North Slope oil production fall to such a level that the TAPS will no longer be able to move the oil? This amount has been estimated to be a little as 300,000 barrels per day to as much as 500,000 barrels per day. If TAPS operations has to be stopped at present levels due to an oil glut in the lower 48, there is a very real possibility that TAPS operations may not be able to be restarted.
Last year, Thomas Barrett, the president of Alyeska Pipeline Company, warned the Legislature that any shut down of TAPS that lasted for more than three days could result in a permanent shut down of TAPS. The automation of TAPS in the 1980s removed the pumps from some of the pump stations, thereby reducing the ability to pressurize the pipeline. Present volumes are marginal with respect to restarting TAPS. The estimate of the shutdown volume was 300,000 barrels per day until 2010, when it was admitted by Barrett that the actual shut down volume could be as much as 500,000 barrels per day.
The reason the oil was returned to Valdez has been the increasing volume of oil produced from the Bakken Shale deposits in North Dakota and from other shale deposits in Texas and Pennsylvania. The same technology that has increased the natural gas reserves of the United States to as much as 200 years at present rates of consumption has now allowed access to oil previously considered unrecoverable.
Another factor is the reduction in the use of gasoline in the U.S. due to higher mileage vehicles. This has led to a decreased demand for crude oil in the face of increased supplies. The U.S. is now exporting refined gasoline in quantities not seen since the 1960s to Central and South America.
The Parnell Administration failed to publically note the return of Alaska crude to Valdez. To have made the public aware that Alaska crude was returned because of an oil glut Outside might have caused a problem for an Administration that has been heavily criticized for its lack of progress on a natural gas pipeline.
One thing is for certain, due to high international demand for crude in Asia, the price of gas is not going down appreciably anytime soon. The domestic price of crude is set by the international market.
The return of Alaska’s oil to Valdez has serious portent for the future of TAPS and for the market for Alaska’s crude. It would truly be ironic for TAPS to have to shut down because there is a glut of oil in the lower-48.
Showing posts with label Alaska Legislature. Show all posts
Showing posts with label Alaska Legislature. Show all posts
Tuesday, May 1, 2012
Tuesday, November 22, 2011
Will the Alaska Army National Guard be there for us . . .
The congressional super committee that was to allegedly make an effort to reduce the deficit has apparently chosen to play politics. It now appears that an impasse has occurred that will result in $1.2 trillion in automatic spending cuts over the next 10 years. The portent for Alaska and the rest of the country of this taking effect is something that this governor and this Legislature need to ponder before the next legislative session begins in January.
The automatic $1.2 trillion in cuts will have an immediate and devastating impact upon the military. As a result of current FY 2012 cuts already in place, with additional cuts imposed by the automatic reduction in spending, the military’s portion of spending cuts will rise to $1 trillion. The result of this reduction, says Sec. of Defense Leon Panetta “will be devastating.”
Allegedly, the war effort in Iraq and Afghanistan theaters of operations are over. The troops will be coming home. Unfortunately, the war is not over, as additional areas of operations have been opened in the Middle East and Africa by President Obama. The latest operation being troops and helicopters very recently deployed to Ghana. Syria is now on NATO’s hit list with ever increasing threats and war talk by NATO countries. Another Alaska Army brigade is getting ready for another deployment to Afghanistan, even though the war is allegedly winding down. An Alaska Army National Guard unit was recently deployed to the Middle East.
Defense cuts necessitated by the recession will negatively impact capability, readiness and manpower in both active and reserve components through at least this decade. More military bases will be closed bringing the threat of the Congressional base closing axe upon Alaska’s two major military bases.
Under the Obama Administration, the National Guard and reserves play a major role in Libyan operations, Iraq and Afghanistan, the Balkans (Kosovo), and the expansion of the war into Africa, Libya, and Yemen.
Due to the weakening of U.S. force structure by spending cuts already in place, the Peoples Republic of China (PRC) and the Russians have initiated open military challenges not seen since the Cold War. The Russians have increased their presence and spending in former Soviet Republics in the Caucus Region with their invasion of Georgia (South Ossetia) and have increased their military presence in Moldava, Dagestan, and Chechnya. Russia has signed a treaty with Ukraine for an additional 25 years for the use of the former Soviet naval base at Sevastopol. Recently, the Russians moved two brigades of troops and additional air and naval units to the far north of Russia to once again challenge the West in the Arctic. The Peoples Republic of China has openly warned the U.S. to stay out of disputes in the China Sea with Vietnam and the Philippines. Chinese naval and air harassment of U.S. and Japanese naval units and aircraft continues off the coast of Japan and elsewhere in the China Sea. Both Russia and the PRC have adopted a first strike policy, with the PRC’s military doctrine being very explicit in designating the United States as its primary adversary.
The reality of our military situation is that our forces are stressed and overextended with multiple deployments ongoing at any time, all the while, suffering concurrent manpower reductions and budget cuts affecting readiness and capability. Major airlift capability is now limited with the closure of the C17 production line by the Obama Administration.
Given the realities of the recession, and the underlying causation of overspending for too many years, the impact upon the military capability of the United States will be draconian through this decade.
Entitlements, which have outgrown military spending, will be the last items reduced by politicians who put their reelection above the defense of the country.
With the downgrading of our military capability will come the wolves seeking advantage, first at the periphery of American military reach, then ever closer to our borders as they sense opportunity. This challenge to American power has already begun in our hemisphere. There are almost daily incursions from Mexico by armed paramilitary forces in support of drug smuggling operations. Iran is militarily invested in Chavez’s Venezuela. The PRC runs the Panama Canal and is expanding its influence in the Caribbean. Al Qaida and Hezbollah have a presence in South America, training personnel for infiltration into the Great Satan of America. Meanwhile, Russian TU95 Bear bombers of Cold War fame once again regularly test U.S. and Canadian air defenses.
Submarines of the PRC Navy have embarrassed the United States Navy at least twice during the Obama Administration. The PRC is accelerating development of tactical nuclear missiles intended to deal a death blow to the U.S. aircraft carrier battle groups in the Pacific.
The Canadians will not be much help in any Arctic defense strategy in the face of a declining military. The Canadians have already admitted that they may have to rely upon contractors for personnel and logistics.
One of the more disturbing aspects of the Afghanistan and Iraq operations was the reliance on Russian contractors for air transport of military equipment and supplies.
One of two strategies for maintaining the U.S. military will develop as the recession, inflation, and resulting world civil unrest increase. The increasing turmoil will result in an ever increasing dependence upon the reserves and National Guard for troops and equipment to augment regular military units. Or, the National Guard and reserves will be stripped of their equipment and reduced in manpower in favor of maintaining a viable, standing military.
The regular U.S. military will continue to be reduced, but called upon to do more, given the ever increasing decline in military capability in Western Europe and Canada. The U.S. Navy played a major role in support of the Libyan campaign by having to provide the majority of aircraft for the Libyan bombing campaign.
The impact of the increasing violence into the U.S. from Mexico’s drug wars will undoubtedly force future administrations to defend our borders from the threat of narco terror, further stressing the military.
James J. Carafano, a defense analyst for the Heritage Institute, in his article on State Defense Forces (SDF) “Small Answers to big problems” in the March 23, 2011 Washington Times, advocated for increasing the number of 32 USC § 109(c) State Defense Forces in the U.S. He also pointed out that the greatest resistance to the State Defense Force concept comes from the State Adjutant Generals, for reasons unknown.
In his letter to then Governor Sarah Palin in September, 2008, then LTG Craig Campbell, Commissioner/Adjutant General (TAG), DMVA, envisioned an expanded role for the Alaska State Defense Force (ASDF), including combat support, and a retention of the ASDF State Military Police Constabulary role as part of the State’s military force structure.
Since 2010, MG Thomas H. Katkus, Commissioner/TAG appointed by Gov. Sean Parnell, has worked purposefully to diminish, disarm, and render ineffective and irrelevant the ASDF. The Parnell Administration acted to disarm and to render ineffective the state-only part of the organized militia in favor of a federal-only emergency military response to disasters in Alaska.
The National Guard belongs to the President, not the Governor, and to believe otherwise is incredibly naive in the face of two U.S. Supreme Court decisions to the contrary.
This action on the part of the Parnell Administration in a time of war calls into question the Parnell Administration’s support of the 2d Amendment and Art. 1 § 19 of the Constitution of the State of Alaska.
The Legislature is complicit in its silence.
Those Alaskans who value their 2d Amendment rights need to be very concerned. The stage has been set and the precedent established with the disarming of the ASDF for the disarming of the Alaska unorganized militia in an emergency.
This is the first time that I can remember in my 57 years as an Alaskan that the Legislature and the Governor have acted with open eyes and clear intent to make Alaskans less safe.
The automatic $1.2 trillion in cuts will have an immediate and devastating impact upon the military. As a result of current FY 2012 cuts already in place, with additional cuts imposed by the automatic reduction in spending, the military’s portion of spending cuts will rise to $1 trillion. The result of this reduction, says Sec. of Defense Leon Panetta “will be devastating.”
Allegedly, the war effort in Iraq and Afghanistan theaters of operations are over. The troops will be coming home. Unfortunately, the war is not over, as additional areas of operations have been opened in the Middle East and Africa by President Obama. The latest operation being troops and helicopters very recently deployed to Ghana. Syria is now on NATO’s hit list with ever increasing threats and war talk by NATO countries. Another Alaska Army brigade is getting ready for another deployment to Afghanistan, even though the war is allegedly winding down. An Alaska Army National Guard unit was recently deployed to the Middle East.
Defense cuts necessitated by the recession will negatively impact capability, readiness and manpower in both active and reserve components through at least this decade. More military bases will be closed bringing the threat of the Congressional base closing axe upon Alaska’s two major military bases.
Under the Obama Administration, the National Guard and reserves play a major role in Libyan operations, Iraq and Afghanistan, the Balkans (Kosovo), and the expansion of the war into Africa, Libya, and Yemen.
Due to the weakening of U.S. force structure by spending cuts already in place, the Peoples Republic of China (PRC) and the Russians have initiated open military challenges not seen since the Cold War. The Russians have increased their presence and spending in former Soviet Republics in the Caucus Region with their invasion of Georgia (South Ossetia) and have increased their military presence in Moldava, Dagestan, and Chechnya. Russia has signed a treaty with Ukraine for an additional 25 years for the use of the former Soviet naval base at Sevastopol. Recently, the Russians moved two brigades of troops and additional air and naval units to the far north of Russia to once again challenge the West in the Arctic. The Peoples Republic of China has openly warned the U.S. to stay out of disputes in the China Sea with Vietnam and the Philippines. Chinese naval and air harassment of U.S. and Japanese naval units and aircraft continues off the coast of Japan and elsewhere in the China Sea. Both Russia and the PRC have adopted a first strike policy, with the PRC’s military doctrine being very explicit in designating the United States as its primary adversary.
The reality of our military situation is that our forces are stressed and overextended with multiple deployments ongoing at any time, all the while, suffering concurrent manpower reductions and budget cuts affecting readiness and capability. Major airlift capability is now limited with the closure of the C17 production line by the Obama Administration.
Given the realities of the recession, and the underlying causation of overspending for too many years, the impact upon the military capability of the United States will be draconian through this decade.
Entitlements, which have outgrown military spending, will be the last items reduced by politicians who put their reelection above the defense of the country.
With the downgrading of our military capability will come the wolves seeking advantage, first at the periphery of American military reach, then ever closer to our borders as they sense opportunity. This challenge to American power has already begun in our hemisphere. There are almost daily incursions from Mexico by armed paramilitary forces in support of drug smuggling operations. Iran is militarily invested in Chavez’s Venezuela. The PRC runs the Panama Canal and is expanding its influence in the Caribbean. Al Qaida and Hezbollah have a presence in South America, training personnel for infiltration into the Great Satan of America. Meanwhile, Russian TU95 Bear bombers of Cold War fame once again regularly test U.S. and Canadian air defenses.
Submarines of the PRC Navy have embarrassed the United States Navy at least twice during the Obama Administration. The PRC is accelerating development of tactical nuclear missiles intended to deal a death blow to the U.S. aircraft carrier battle groups in the Pacific.
The Canadians will not be much help in any Arctic defense strategy in the face of a declining military. The Canadians have already admitted that they may have to rely upon contractors for personnel and logistics.
One of the more disturbing aspects of the Afghanistan and Iraq operations was the reliance on Russian contractors for air transport of military equipment and supplies.
One of two strategies for maintaining the U.S. military will develop as the recession, inflation, and resulting world civil unrest increase. The increasing turmoil will result in an ever increasing dependence upon the reserves and National Guard for troops and equipment to augment regular military units. Or, the National Guard and reserves will be stripped of their equipment and reduced in manpower in favor of maintaining a viable, standing military.
The regular U.S. military will continue to be reduced, but called upon to do more, given the ever increasing decline in military capability in Western Europe and Canada. The U.S. Navy played a major role in support of the Libyan campaign by having to provide the majority of aircraft for the Libyan bombing campaign.
The impact of the increasing violence into the U.S. from Mexico’s drug wars will undoubtedly force future administrations to defend our borders from the threat of narco terror, further stressing the military.
James J. Carafano, a defense analyst for the Heritage Institute, in his article on State Defense Forces (SDF) “Small Answers to big problems” in the March 23, 2011 Washington Times, advocated for increasing the number of 32 USC § 109(c) State Defense Forces in the U.S. He also pointed out that the greatest resistance to the State Defense Force concept comes from the State Adjutant Generals, for reasons unknown.
In his letter to then Governor Sarah Palin in September, 2008, then LTG Craig Campbell, Commissioner/Adjutant General (TAG), DMVA, envisioned an expanded role for the Alaska State Defense Force (ASDF), including combat support, and a retention of the ASDF State Military Police Constabulary role as part of the State’s military force structure.
Since 2010, MG Thomas H. Katkus, Commissioner/TAG appointed by Gov. Sean Parnell, has worked purposefully to diminish, disarm, and render ineffective and irrelevant the ASDF. The Parnell Administration acted to disarm and to render ineffective the state-only part of the organized militia in favor of a federal-only emergency military response to disasters in Alaska.
The National Guard belongs to the President, not the Governor, and to believe otherwise is incredibly naive in the face of two U.S. Supreme Court decisions to the contrary.
This action on the part of the Parnell Administration in a time of war calls into question the Parnell Administration’s support of the 2d Amendment and Art. 1 § 19 of the Constitution of the State of Alaska.
The Legislature is complicit in its silence.
Those Alaskans who value their 2d Amendment rights need to be very concerned. The stage has been set and the precedent established with the disarming of the ASDF for the disarming of the Alaska unorganized militia in an emergency.
This is the first time that I can remember in my 57 years as an Alaskan that the Legislature and the Governor have acted with open eyes and clear intent to make Alaskans less safe.
Tuesday, July 5, 2011
The lights still will not come on . . .
The 500mmcf per day line, the so called bullet line, Harry Noah's bullet line, the pipeline that "doesn't pencil"--make economic sense--is a dead end.
There is only one permitted, dedicated right of way to tidewater, the one mile corridor created with TAPS.
I have never seen 61 people try so hard to ignore the obvious in the face of overwhelming information available as to the market for LNG, the route, and the economics.
"We have to do something to get gas to south central and Fairbanks, why there is a crisis coming,” cry the pols.
Squandering $214M to do nothing on project that is not viable is doing something? It is admitted by Chennault and Hawker that the State will have to subsidize the natural transported in that line, because the volume is too low and would raise the cost to consumers. It would be cheaper to import gas . . . from Russia.
The Legislature and the Governor need to have an epiphany to cover their ignoring the obvious and declare "now I see, now I see" and commit to the only project that is economically viable, the all-Alaska natural gas pipeline to Valdez, with the 250mmcf per day spur to the Enstar hub at Palmer. The gas liquids would be pulled off at FBKS, giving the interior new industry and fuels for the Bush.
What State ‘leader’ would ignore the ongoing benefits of the gas liquids used in-state? More importantly, why. Value added resource development has been the Holy Grail of Alaska’s resource development forever. Cheap energy will make possible what is otherwise too expensive. The impact would be tremendously beneficial to our agriculture, mining and timber sectors.
Maybe, former Gov. Sarah Palin can apologize to Alaskans for sticking it to them with AGIA after campaigning on the all-Alaska natural gas pipeline to the governor’s office.
I wonder if dear Sarah has promised Gov. Sean Parnell a seat in her cabinet so long as he continues AGIA so that she can claim “expertise” of oil and gas development as part of her grandiose scheme to become Sarah the First, Queen and President? She must have done so, as no rational, prudent human being of sound mind would continue with AGIA in the face of shale gas and the burgeoning LNG market.
In order to get out of the AGIA dead end, the State would have to declare AGIA uneconomical and prepare for a potential court battle. Or, continue to roll the dice with the end of TAPS. Gas development would spur more oil development.
Leadership is what is needed, but leadership is not what we have.
Instead, we have Mike Chennault and Mike Hawker's questionable melding of AHFC, the ARR, Noah's former group, and a committee of legislators comprising the Alaska Gas Development Corporation promoting a pipeline that everyone says is too expensive and must be subsidized forever. They created an unholy abomination of State and quasi-State corporations, all of which had no gas development mandate until Chennault and Hawker pushed it through to unseeing, unknowing and apparently, uninterested Legislature.
Meanwhile, AS 41.41 is ignored which created the Alaska Natural Gas Development Authority and the all-Alaska natural gas pipeline.
What is so hard about all of this that these fine folks in our Legislature cannot understand? LNG is the market, we have 40 years of history with the Japanese on LNG deliveries, why are we not taking advantage of our opportunities?
Like the Japanese want to deal with the . . . Russians? Or, the ME?
We need leadership in Juneau, not someone who has violated their oath of office with the appointment of two legislators to cabinet posts in violation of the law. Gov. Sean Parnell should be impeached for what he did in the Therriault and Dahlstrom cases. However, no one in the
Legislature has the cojones to step up in defense of the constitutional affront by this governor.
And, we pay the price with $200M more going down a rat hole just to make a couple of politicians 'feel good'.
Our opportunities on the world market wane as time passes and our leaders look for “inspiration”, all the while ignoring the obvious.
There is only one permitted, dedicated right of way to tidewater, the one mile corridor created with TAPS.
I have never seen 61 people try so hard to ignore the obvious in the face of overwhelming information available as to the market for LNG, the route, and the economics.
"We have to do something to get gas to south central and Fairbanks, why there is a crisis coming,” cry the pols.
Squandering $214M to do nothing on project that is not viable is doing something? It is admitted by Chennault and Hawker that the State will have to subsidize the natural transported in that line, because the volume is too low and would raise the cost to consumers. It would be cheaper to import gas . . . from Russia.
The Legislature and the Governor need to have an epiphany to cover their ignoring the obvious and declare "now I see, now I see" and commit to the only project that is economically viable, the all-Alaska natural gas pipeline to Valdez, with the 250mmcf per day spur to the Enstar hub at Palmer. The gas liquids would be pulled off at FBKS, giving the interior new industry and fuels for the Bush.
What State ‘leader’ would ignore the ongoing benefits of the gas liquids used in-state? More importantly, why. Value added resource development has been the Holy Grail of Alaska’s resource development forever. Cheap energy will make possible what is otherwise too expensive. The impact would be tremendously beneficial to our agriculture, mining and timber sectors.
Maybe, former Gov. Sarah Palin can apologize to Alaskans for sticking it to them with AGIA after campaigning on the all-Alaska natural gas pipeline to the governor’s office.
I wonder if dear Sarah has promised Gov. Sean Parnell a seat in her cabinet so long as he continues AGIA so that she can claim “expertise” of oil and gas development as part of her grandiose scheme to become Sarah the First, Queen and President? She must have done so, as no rational, prudent human being of sound mind would continue with AGIA in the face of shale gas and the burgeoning LNG market.
In order to get out of the AGIA dead end, the State would have to declare AGIA uneconomical and prepare for a potential court battle. Or, continue to roll the dice with the end of TAPS. Gas development would spur more oil development.
Leadership is what is needed, but leadership is not what we have.
Instead, we have Mike Chennault and Mike Hawker's questionable melding of AHFC, the ARR, Noah's former group, and a committee of legislators comprising the Alaska Gas Development Corporation promoting a pipeline that everyone says is too expensive and must be subsidized forever. They created an unholy abomination of State and quasi-State corporations, all of which had no gas development mandate until Chennault and Hawker pushed it through to unseeing, unknowing and apparently, uninterested Legislature.
Meanwhile, AS 41.41 is ignored which created the Alaska Natural Gas Development Authority and the all-Alaska natural gas pipeline.
What is so hard about all of this that these fine folks in our Legislature cannot understand? LNG is the market, we have 40 years of history with the Japanese on LNG deliveries, why are we not taking advantage of our opportunities?
Like the Japanese want to deal with the . . . Russians? Or, the ME?
We need leadership in Juneau, not someone who has violated their oath of office with the appointment of two legislators to cabinet posts in violation of the law. Gov. Sean Parnell should be impeached for what he did in the Therriault and Dahlstrom cases. However, no one in the
Legislature has the cojones to step up in defense of the constitutional affront by this governor.
And, we pay the price with $200M more going down a rat hole just to make a couple of politicians 'feel good'.
Our opportunities on the world market wane as time passes and our leaders look for “inspiration”, all the while ignoring the obvious.
Saturday, August 15, 2009
Palin’s appointment is going to haunt Parnell
Last year, Sarah Palin appointed a pipeline czar. Harry Noah, who was Executive Director of Mental Health Trust Lands, was appointed by Sarah to the newly created position of natural gas pipeline czar. The position was charged with overseeing the development of natural gas pipelines and moving Alaska’s gas to market. Harry is a miner without oil and gas experience, but is someone who has ties to Dep. Commissioner Marty Rutherford, Dept. of Natural Resources (DNR).
Rutherford was a former lobbyist for TransCanada. She has worked for the State in one capacity or another from the Knowles Administration through the Palin Administration, and now is one of Parnell’s upper echelon DNR staff. This individual, like Noah, has no oil and gas experience, but has been continually put in positions to influence oil and gas decisions.
The problem for Parnell is, that Noah’s post duplicates the voter created Alaska Natural Gas Development Authority’s (ANGDA) portfolio. ANGDA was created with the approval of Proposition 3 by 62% of Alaskans voting in the 2002 election.
What was ANGDA’s mandate?
To develop and market Alaska’s natural gas resources both in-state and for export, including the building of a natural gas pipeline to Valdez.
Then Gov. Frank Murkowski, who had campaigned on his own pipe dream, did not support ANGDA. Gov. Murkowski tried to give ANGDA the cold shoulder. He initially refused to fund ANGDA. Murkowski was finally forced to give the voter created authority an office and a meager budget to begin the job of getting Alaska’s gas to market. Murkowski then proceeded to continue to ignore ANGDA for the rest of his tenure as governor.
ANGDA remained in the shadow of the Murkowski pipeline to nowhere dream for the rest of the Murkowski Administration.
Sarah Palin, running against Murkowski in 2006, supported both an all-Alaska pipeline route down TAPS to Valdez and ANGDA as the vehicle to get our gas to market and to build the pipeline. During the gubernatorial campaign, Sarah criticized Murkowski’s pipe dream. ANGDA was mentioned prominently in many of her speeches on natural gas issues.
The looming Cook Inlet natural gas shortage was also a topic spoken of by our former Governor as an example of ignoring the obvious.
Once in office, Sarah Palin did a Frank Murkowski with her AGIA plan, which became the third such plan to build a large capacity (>4bcf/day) pipeline through Canada. This plan, like those of her predecessors, served to increase Canadian job opportunity, both in Alaska and Canada.
Earlier this year, Sarah appointed Harry Noah as her pipeline czar. Shortly thereafter, ANGDA’s funding was cut by the Palin Administration.
Since, the ongoing row between ANGDA and Noah has become more obstructionist on Noah’s part.
In creating the pipeline czar position, Gov. Sarah Palin did exactly what she campaigned against: duplication of mission, and an unnecessary growth of government.
As reported in the Copper Center Record in April of 2009, ANGDA has evolved into a highly respected professional organization with innovative ideas to get Alaska’s gas to market and to make use of the abundant propane that is part of our natural gas deposits for home and business heating in the Bush.
The core of ANGDA’s strategy has been to engage the private sector’s participation in its plans. The propane initiative has a commitment for propane production from the North Slope producers. Private companies will transport, distribute and sell the propane. ANGDA is conducting seminars so that electric utilities will be able to bid intelligently on natural gas supplies during the upcoming open season.
ANGDA has completed both the rights of way and economic studies for the Glenn-Richardson highway route for a 24 inch natural gas line to Palmer’s Enstar Hub. This route will take off from either the AGIA pipe at Big Delta or from an all-Alaska pipe to Valdez at Glennallen.
The economics of gas delivery are tied to volume. Taking off of either proposed big pipeline projects gives south central Alaska gas customers the best pricing for delivery. The cost of our gas will be included in the transport of the larger volume, thereby reducing the cost of any gas delivered to south central.
Pipeline Czar Harry Noah wants a 24 inch pipeline from the North Slope down the Parks Highway to Anchorage. The low volume of approximately 500 million cubic feet per day in comparison to the rates for transporting 2.5 bcf per day through an all-Alaska pipeline to Valdez will result in south central gas customers paying double or more on their gas rates to provide Fairbanks with essentially, the cheapest gas in the State. This is because Fairbanks gas would have the least cost for transport. Those of us in south central and on the Kenai would pay more because of the distance transported.
ANGDA’s position is that if the Open Seasons in 2010 for the Alaska-Canada pipe projects (AGIA and Denali) are a bust, then an in-State "bullet line" from the North Slope through Fairbanks down into south central Alaska should be considered. Until then, it makes the most economic sense to bring a spur line down the Richardson and Glenn highways off of any of the proposed large diameter pipeline projects to the gas hub at Palmer.
Presently, projects under consideration are Conoco-Phillips Denali project and AGIA (TransCanada and Exxon).
TransCanada and Exxon have recently expressed interest in an all-Alaska pipeline to Valdez and LNG terminal option, given the Canadian LNG terminal project at Kittimat, B.C. (This is what the Alaska voters created ANGDA to do in 2002.)
ANGDA has already completed much of the work in evaluating the Parks route. ANGDA’s work with that of the U.S DOE in 2005, private oil industry in the mid- 1990's, and the 1988 Federal Environmental Impact Study completed by the former Yukon Pacific Company (YPC) all concluded that while the Parks Highway route and the Richardson/Glenn are about equal in cost of construction, the Parks route has permitting and engineering hurdles yet to be addressed.
The Parks Highway route would require rights of way through State and federal parks and wildlife refuges, including major salmon tributaries. This route would be a lawsuit magnet by the environmental anti-development groups. Further, the route presents major engineering challenges along the route near Cantwell, Denali, and at Hurricane Gulch that have yet to be addressed.
The only route that will get natural gas to south central in a timely manner is the ANGDA route down the Richardson/Glenn Highway corridors. This route has none of the Federal or State environmental or engineering impediments. This route uses the existing TAPS oil corridor to Glennallen. The last 150 miles from Glennallen to Palmer is the only segment not in the TAPS right of way. In 2005, ANGDA acquired the State of Alaska Conditional Right of Way for last 150 miles to Palmer from Glennallen . Therefore, the route proposed by ANGDA has none of the impediments of the Parks Highway route. Both routes use the TAPS corridor right of way north of Fairbanks.
The ANGDA preferred route will provide the cheapest gas to Alaskans.
Pipeline Czar Harry Noah now intends to duplicate the work on the Parks Route with additional studies at additional State expense. Baker Engineering is contracted to repeat much of what has already been accomplished by ANGDA, the feds and YPC.
Playing against all of this is the looming shortfall in Cook Inlet natural gas supplies. The specter of rolling brown outs and blackouts during peak winter months are being publically discussed for the first time. The lack of sufficient supplies of Cook Inlet natural gas to fuel both homes and Chugach’s gas turbines at Beluga Point was openly and harshly discussed at a recent Regulatory Commission of Alaska (RCA) meeting reported by the Petroleum News. The power utilities were criticized for not having any contingency plans for such an eventuality.
Yet, the reality is, this is a looming situation known for years. It is the result of the politics of oil in Alaska, and a lack of concern by Alaska’s Legislature and governors, including Sarah Palin.
As previously reported, Marthon Oil complained to the Anchorage Chamber of Commerce earlier this year about declining gas supplies and the intransigence of the Regulatory Commission of Alaska (RCA) in issuing new drilling permits for exploration, making it difficult for the oil company to plan and allocate drilling resources. Just 7 new wells were drilled in Cook Inlet last year.
Over 10,000 new wells were drilled in Alberta alone last year. That volume of new wells is considered a bad year for oil and gas in Alberta. Down from 13,000 the year before and 18,000 the year before that.
ANGDA was created by the voters in 2002 to do what Harry Noah was charged with under the Palin Administration. Gov. Sean Parnell is continuing that mistake.
Sarah Palin’s Harry Noah may be the albatross impeding the Parnell Administration’s attempt to get Alaska back on the oil and gas development map.
The voters knew what they wanted in creating ANGDA. We wanted an all-Alaska natural gas pipeline. However, three governors and the Legislatures of those years all failed us.
The Canadians are moving swiftly to tie up Asian gas markets for their LNG facility under construction at Kittimat, B.C.
Funny, the Canadians can export natural gas to Asia cheaply, but Alaska cannot.
Why?
Both Sarah Palin and Frank Murkowski attempted to thwart the will of the people by impeding ANGDA’s mission.
The specter of rolling brownouts and blackouts in the middle of winter in Alaska’s most populated region is real.
Parnell needs to eliminate the position of pipeline czar, and let ANGDA do its job. If he continues to allow Noah to create conflicts with ANGDA and to further delay the opportunity to put Alaska’s North Slope gas to best use, Parnell may very well have to answer to the people in 2010.
Rutherford was a former lobbyist for TransCanada. She has worked for the State in one capacity or another from the Knowles Administration through the Palin Administration, and now is one of Parnell’s upper echelon DNR staff. This individual, like Noah, has no oil and gas experience, but has been continually put in positions to influence oil and gas decisions.
The problem for Parnell is, that Noah’s post duplicates the voter created Alaska Natural Gas Development Authority’s (ANGDA) portfolio. ANGDA was created with the approval of Proposition 3 by 62% of Alaskans voting in the 2002 election.
What was ANGDA’s mandate?
To develop and market Alaska’s natural gas resources both in-state and for export, including the building of a natural gas pipeline to Valdez.
Then Gov. Frank Murkowski, who had campaigned on his own pipe dream, did not support ANGDA. Gov. Murkowski tried to give ANGDA the cold shoulder. He initially refused to fund ANGDA. Murkowski was finally forced to give the voter created authority an office and a meager budget to begin the job of getting Alaska’s gas to market. Murkowski then proceeded to continue to ignore ANGDA for the rest of his tenure as governor.
ANGDA remained in the shadow of the Murkowski pipeline to nowhere dream for the rest of the Murkowski Administration.
Sarah Palin, running against Murkowski in 2006, supported both an all-Alaska pipeline route down TAPS to Valdez and ANGDA as the vehicle to get our gas to market and to build the pipeline. During the gubernatorial campaign, Sarah criticized Murkowski’s pipe dream. ANGDA was mentioned prominently in many of her speeches on natural gas issues.
The looming Cook Inlet natural gas shortage was also a topic spoken of by our former Governor as an example of ignoring the obvious.
Once in office, Sarah Palin did a Frank Murkowski with her AGIA plan, which became the third such plan to build a large capacity (>4bcf/day) pipeline through Canada. This plan, like those of her predecessors, served to increase Canadian job opportunity, both in Alaska and Canada.
Earlier this year, Sarah appointed Harry Noah as her pipeline czar. Shortly thereafter, ANGDA’s funding was cut by the Palin Administration.
Since, the ongoing row between ANGDA and Noah has become more obstructionist on Noah’s part.
In creating the pipeline czar position, Gov. Sarah Palin did exactly what she campaigned against: duplication of mission, and an unnecessary growth of government.
As reported in the Copper Center Record in April of 2009, ANGDA has evolved into a highly respected professional organization with innovative ideas to get Alaska’s gas to market and to make use of the abundant propane that is part of our natural gas deposits for home and business heating in the Bush.
The core of ANGDA’s strategy has been to engage the private sector’s participation in its plans. The propane initiative has a commitment for propane production from the North Slope producers. Private companies will transport, distribute and sell the propane. ANGDA is conducting seminars so that electric utilities will be able to bid intelligently on natural gas supplies during the upcoming open season.
ANGDA has completed both the rights of way and economic studies for the Glenn-Richardson highway route for a 24 inch natural gas line to Palmer’s Enstar Hub. This route will take off from either the AGIA pipe at Big Delta or from an all-Alaska pipe to Valdez at Glennallen.
The economics of gas delivery are tied to volume. Taking off of either proposed big pipeline projects gives south central Alaska gas customers the best pricing for delivery. The cost of our gas will be included in the transport of the larger volume, thereby reducing the cost of any gas delivered to south central.
Pipeline Czar Harry Noah wants a 24 inch pipeline from the North Slope down the Parks Highway to Anchorage. The low volume of approximately 500 million cubic feet per day in comparison to the rates for transporting 2.5 bcf per day through an all-Alaska pipeline to Valdez will result in south central gas customers paying double or more on their gas rates to provide Fairbanks with essentially, the cheapest gas in the State. This is because Fairbanks gas would have the least cost for transport. Those of us in south central and on the Kenai would pay more because of the distance transported.
ANGDA’s position is that if the Open Seasons in 2010 for the Alaska-Canada pipe projects (AGIA and Denali) are a bust, then an in-State "bullet line" from the North Slope through Fairbanks down into south central Alaska should be considered. Until then, it makes the most economic sense to bring a spur line down the Richardson and Glenn highways off of any of the proposed large diameter pipeline projects to the gas hub at Palmer.
Presently, projects under consideration are Conoco-Phillips Denali project and AGIA (TransCanada and Exxon).
TransCanada and Exxon have recently expressed interest in an all-Alaska pipeline to Valdez and LNG terminal option, given the Canadian LNG terminal project at Kittimat, B.C. (This is what the Alaska voters created ANGDA to do in 2002.)
ANGDA has already completed much of the work in evaluating the Parks route. ANGDA’s work with that of the U.S DOE in 2005, private oil industry in the mid- 1990's, and the 1988 Federal Environmental Impact Study completed by the former Yukon Pacific Company (YPC) all concluded that while the Parks Highway route and the Richardson/Glenn are about equal in cost of construction, the Parks route has permitting and engineering hurdles yet to be addressed.
The Parks Highway route would require rights of way through State and federal parks and wildlife refuges, including major salmon tributaries. This route would be a lawsuit magnet by the environmental anti-development groups. Further, the route presents major engineering challenges along the route near Cantwell, Denali, and at Hurricane Gulch that have yet to be addressed.
The only route that will get natural gas to south central in a timely manner is the ANGDA route down the Richardson/Glenn Highway corridors. This route has none of the Federal or State environmental or engineering impediments. This route uses the existing TAPS oil corridor to Glennallen. The last 150 miles from Glennallen to Palmer is the only segment not in the TAPS right of way. In 2005, ANGDA acquired the State of Alaska Conditional Right of Way for last 150 miles to Palmer from Glennallen . Therefore, the route proposed by ANGDA has none of the impediments of the Parks Highway route. Both routes use the TAPS corridor right of way north of Fairbanks.
The ANGDA preferred route will provide the cheapest gas to Alaskans.
Pipeline Czar Harry Noah now intends to duplicate the work on the Parks Route with additional studies at additional State expense. Baker Engineering is contracted to repeat much of what has already been accomplished by ANGDA, the feds and YPC.
Playing against all of this is the looming shortfall in Cook Inlet natural gas supplies. The specter of rolling brown outs and blackouts during peak winter months are being publically discussed for the first time. The lack of sufficient supplies of Cook Inlet natural gas to fuel both homes and Chugach’s gas turbines at Beluga Point was openly and harshly discussed at a recent Regulatory Commission of Alaska (RCA) meeting reported by the Petroleum News. The power utilities were criticized for not having any contingency plans for such an eventuality.
Yet, the reality is, this is a looming situation known for years. It is the result of the politics of oil in Alaska, and a lack of concern by Alaska’s Legislature and governors, including Sarah Palin.
As previously reported, Marthon Oil complained to the Anchorage Chamber of Commerce earlier this year about declining gas supplies and the intransigence of the Regulatory Commission of Alaska (RCA) in issuing new drilling permits for exploration, making it difficult for the oil company to plan and allocate drilling resources. Just 7 new wells were drilled in Cook Inlet last year.
Over 10,000 new wells were drilled in Alberta alone last year. That volume of new wells is considered a bad year for oil and gas in Alberta. Down from 13,000 the year before and 18,000 the year before that.
ANGDA was created by the voters in 2002 to do what Harry Noah was charged with under the Palin Administration. Gov. Sean Parnell is continuing that mistake.
Sarah Palin’s Harry Noah may be the albatross impeding the Parnell Administration’s attempt to get Alaska back on the oil and gas development map.
The voters knew what they wanted in creating ANGDA. We wanted an all-Alaska natural gas pipeline. However, three governors and the Legislatures of those years all failed us.
The Canadians are moving swiftly to tie up Asian gas markets for their LNG facility under construction at Kittimat, B.C.
Funny, the Canadians can export natural gas to Asia cheaply, but Alaska cannot.
Why?
Both Sarah Palin and Frank Murkowski attempted to thwart the will of the people by impeding ANGDA’s mission.
The specter of rolling brownouts and blackouts in the middle of winter in Alaska’s most populated region is real.
Parnell needs to eliminate the position of pipeline czar, and let ANGDA do its job. If he continues to allow Noah to create conflicts with ANGDA and to further delay the opportunity to put Alaska’s North Slope gas to best use, Parnell may very well have to answer to the people in 2010.
Wednesday, April 15, 2009
Sarah Palin and Levi
Once again, our Governor has risen to the bait. She has something stuck in her craw and that something is the father of her oldest daughter’s child.
Why? Levi Johnson has been on the talk circuit telling all. And, Sarah is angry.
I have written locally and nationally on Examiner about our gov’s penchant for lacking the self-discipline, deportment, sense of duty, sense of propriety, and understanding of protocol that causes her office to be dragged in the mud right along with her in her zeal to slam back at her detractors. If all of her public retorts were in response to policy criticism, maybe she would be justified for a zealous defense. Once again, it is the soap opera of family, particularly that circumstance revolving around an unwed daughter that brings focus to Governor Palin the public spectacle, and not as the “tested leader” she claims to be.
The worst of this is the soap opera like atmosphere that surrounds this distraction. A daughter, pregnant out of wedlock, a young man, her boyfriend and father of the kid, and the predictable disaffection of the boyfriend come mommy in law to be’s sudden fame. This is good for at least a year on any soap opera.
Even the entertainment anchors on CNN today were lamenting that Gov. Palin needs to stop bringing her family issues to the public forum. (And, I am no fan of CNN, the Communist News Network.)
One thing that has to be asked of those who see Sarah Palin as a leader worthy of national prominence, is “where is your husband in all of this”, and “why is he not speaking for the family” since Sarah is gov and really should not be dragging the State of Alaska into her family fights.
Yes, where is Todd in all of this?
If not Todd, why is there not a family spokesperson to keep the gov’s office out of all this family squabble?
Why must Sarah interject the State of Alaska and her office as Governor into such a soap opera?
Enough on that tripe. And, it is tripe.
Again, ask yourself why our governor continually drags the State into her soap opera at home?
Is such the role of the Governor of the State of Alaska?
Is this what you want for President?
Replacing Sen. Kim Elton
Sarah has a dispute going with the dems. When former Sen. Kim Elton resigned to take his position with the Obama Administration, the Governor had a seat that she had to fill. The protocol in the past has been for the dems to select 3 names and to submit them to the gov for a final selection. Instead, the dems submitted one name.
Governor Palin responded with her own choice and the battle has gone back and forth from there.
It is incumbent upon the dems to provide three names. Once they have done so, I am certain that Gov. Palin will select from that list. Until then . . . it makes for good press and shows just how little respect the dem party has for protocol and established precedent.
In this regard, more power to Sarah Palin. She is holding the line and making her point.
Sarah and Stimulus Money
Gov. Palin’s position on the stimulus package has been if there is no additional baggage or cost to the State from the expansion of the programs most of the package represents, then, fine, Alaska will take the money. However, that is not the case.
Intertwining with this, is the usual Gov. and Legislature contest to see who can spend the most. The gov hacked the Legislature’s budget and they hacked hers. Part of the dispute is over education funding. The federal stimulus includes money for school repairs and other education issues that Palin believes should be subtracted from the State side buck by buck, so that the feds are paying the full education bill that is allowed by the funding from the stimulus package.
The Legislature disagrees. They, of course, want both to squander, without consideration to future liabilities incurred by the State for any funding accepted and program expansion required by the so called stimulus. Basically, the Legislature wants their cake and eat it too.
Who will come out on top?
Who knows? Not this session of the Legislature, anyway, unless there is compromise in the offing that has yet to be revealed.
I hope Gov. Palin sticks to her guns on this and the Elton replacement issue.
I further hope that she will stop being Sarah Soap Opera and realize that the gov’s job is full time.
Once again, our Governor has risen to the bait. She has something stuck in her craw and that something is the father of her oldest daughter’s child.
Why? Levi Johnson has been on the talk circuit telling all. And, Sarah is angry.
I have written locally and nationally on Examiner about our gov’s penchant for lacking the self-discipline, deportment, sense of duty, sense of propriety, and understanding of protocol that causes her office to be dragged in the mud right along with her in her zeal to slam back at her detractors. If all of her public retorts were in response to policy criticism, maybe she would be justified for a zealous defense. Once again, it is the soap opera of family, particularly that circumstance revolving around an unwed daughter that brings focus to Governor Palin the public spectacle, and not as the “tested leader” she claims to be.
The worst of this is the soap opera like atmosphere that surrounds this distraction. A daughter, pregnant out of wedlock, a young man, her boyfriend and father of the kid, and the predictable disaffection of the boyfriend come mommy in law to be’s sudden fame. This is good for at least a year on any soap opera.
Even the entertainment anchors on CNN today were lamenting that Gov. Palin needs to stop bringing her family issues to the public forum. (And, I am no fan of CNN, the Communist News Network.)
One thing that has to be asked of those who see Sarah Palin as a leader worthy of national prominence, is “where is your husband in all of this”, and “why is he not speaking for the family” since Sarah is gov and really should not be dragging the State of Alaska into her family fights.
Yes, where is Todd in all of this?
If not Todd, why is there not a family spokesperson to keep the gov’s office out of all this family squabble?
Why must Sarah interject the State of Alaska and her office as Governor into such a soap opera?
Enough on that tripe. And, it is tripe.
Again, ask yourself why our governor continually drags the State into her soap opera at home?
Is such the role of the Governor of the State of Alaska?
Is this what you want for President?
Replacing Sen. Kim Elton
Sarah has a dispute going with the dems. When former Sen. Kim Elton resigned to take his position with the Obama Administration, the Governor had a seat that she had to fill. The protocol in the past has been for the dems to select 3 names and to submit them to the gov for a final selection. Instead, the dems submitted one name.
Governor Palin responded with her own choice and the battle has gone back and forth from there.
It is incumbent upon the dems to provide three names. Once they have done so, I am certain that Gov. Palin will select from that list. Until then . . . it makes for good press and shows just how little respect the dem party has for protocol and established precedent.
In this regard, more power to Sarah Palin. She is holding the line and making her point.
Sarah and Stimulus Money
Gov. Palin’s position on the stimulus package has been if there is no additional baggage or cost to the State from the expansion of the programs most of the package represents, then, fine, Alaska will take the money. However, that is not the case.
Intertwining with this, is the usual Gov. and Legislature contest to see who can spend the most. The gov hacked the Legislature’s budget and they hacked hers. Part of the dispute is over education funding. The federal stimulus includes money for school repairs and other education issues that Palin believes should be subtracted from the State side buck by buck, so that the feds are paying the full education bill that is allowed by the funding from the stimulus package.
The Legislature disagrees. They, of course, want both to squander, without consideration to future liabilities incurred by the State for any funding accepted and program expansion required by the so called stimulus. Basically, the Legislature wants their cake and eat it too.
Who will come out on top?
Who knows? Not this session of the Legislature, anyway, unless there is compromise in the offing that has yet to be revealed.
I hope Gov. Palin sticks to her guns on this and the Elton replacement issue.
I further hope that she will stop being Sarah Soap Opera and realize that the gov’s job is full time.
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