A Citizen’s Guide

Petroleum News, in its edition for the week of June 25, has a story about a new report from the U.S. Department of Energy assessing natural gas demand in Alaska. It makes for some interesting reading.

The story begins:

“Given the current intense debate over various options for bringing North Slope natural gas to market, objective information is critical to assessing the feasibility of ideas that seem attractive but that may not withstand the rigors of harsh reality. Would, for example, a spur line to bring North Slope gas into Southcentral Alaska be economically viable? Is an Alaska-based petrochemical industry a real option or simply an optimistic mirage?

“The U.S. Department of Energy tackled those and other questions in a comprehensive report it has just released on potential Alaska natural gas demand in the years ahead.”

The full Petroleum News story is available here.

Oil company representatives Friday criticized Gov. Frank Murkowski’s call for a second special legislative session prior to the August primary election.

Daren Beaudo, spokesman for BP, said it politicizes the process.

“Legislators will be under pressure because of the election cycle to think and act in a way they otherwise wouldn’t,” he said. “Taking some time would probably put people in a better frame of mind.”

ConocoPhillips spokeswoman Dawn Patience agreed that calling lawmakers back to Juneau in July could complicate decisions on the proposed contract with BP, ConocoPhillips and Exxon Mobil to develop North Slope natural gas.

Murkowski notified lawmakers Thursday that he would call a second special session beginning July 12 to consider the proposed contract and changes to the state’s oil production tax. Read the rest of this entry »

To the editor:

Don’t build the gas line. Why ship it out? Instead, put turbines at the gas fields, produce electricity and run a high-voltage line down the center of the state and to Canada and then sell the electricity to them and the United States. Canada is selling electricity to the United States. Why do you think they want our gas to go through their country? So that they can get cheap natural gas to run their turbines and to sell electricity to the United States when we have shortages. Read the rest of this entry »

My phone rings and it’s my ol’ college football buddy Forrest Gump.

I recognize his Alabama drawl immediately. “So, Forrest, what prompts the call?” I ask.

Forrest: “Well, now that I have a lot of money and can’t be bought by oil company lobbyists, I thought you might want to talk to me about your beautiful state and something called “stranded gas.” Now you know I’m not a smart man, but I do know what stranded means. See, I’m a lot like that fellow Tom Irwin, and I can read.” Read the rest of this entry »

GAS LINE: The timing of the next special session of the Legislature is based on the timing of the primary election for governor.

And Gov. Frank Murkowski could do all of us a favor by rescinding his call for a special session and separating this issue from his re-election campaign.

Murkowski and the others seeking the governor’s post should use this time to argue and debate the gas pipeline contract all they want, but the administration should not try to force lawmakers into a corner with an artificial deadline created by the election, which is eight weeks from Tuesday. Read the rest of this entry »

JUNEAU—Gov. Frank Murkowski will ask lawmakers to allow him the authority to negotiate changes in a proposed natural gas pipeline contract with the oil companies, his chief of staff said Friday.

The governor is calling back legislators July 12 for a second special session on the proposed gas pipeline deal he worked out with Exxon Mobil Corp., ConocoPhillips and BP PLC.

The deal needs the approval of the Legislature. Public review of the contract ends July 24.

Chief of Staff Jim Clark said lawmakers at the start of the second special session will be given the following message: “If you will pass the amendments and give us the authority, we will then go back and ratify the contract.”

Two bills from the first special session, which ended June 8, will be reintroduced: one changing the taxing scheme for oil companies and another amending the state’s Stranded Gas Development Act to give Murkowski the authority to negotiate oil taxes as part of a gas pipeline contract. Read the rest of this entry »