Alaska LNG achieves cost reductions: Companies

Alaska LNG achieves cost reductions: Companies

The Alaska LNG Project is making progress in cost-reductions as preliminary engineering nears completion, managers of a joint industry-state consortium told state legislators in recent briefings. Wednesday. Estimates made earlier were for costs to range from $45 billion to $65 billion, but changes in the project made in preliminary Front-End Engineering and Design have lowered the cost to about $45 billion, industry members of the Alaska LNG Groups told lawmakers. The state of Alaska will take over the project at…

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State denies permit for Prudhoe–starts gas fight

State denies permit for Prudhoe–starts gas fight

Alaska’s Division of Oil and Gas denied approval for renewal of a key operating permit for the Prudhoe Bay field on the North Slope in a letter sent June 30 to BP, the field operator. The division gave field owners BP, ConocoPhillips and ExxonMobil until Sept. 1 to remedy issues that were raised, according to the letter. The current permit, the Plan of Development for the field, ended June 30 but has been extended to Nov. 1. The state is…

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Governor shows guts – whacks PFD payment

Governor shows guts – whacks PFD payment

Despite legislators’ inability to adopt fiscal reforms, the good news is that Gov. Bill Walker isn’t backing off. He is keeping the issue on the table, and showing plenty of guts. His June 29 veto of half the funding for the Permanent Fund Dividend is a strong and powerful wake-up call to the public and the Legislature–a message delivered with a sledgehammer. Let’s put it this way: He has chosen to be less the politician and more a governor. The…

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Budgets pass in both Houses – now what?

Budgets pass in both Houses – now what?

Both the state House and Senate have passed their versions of the FY 2017 state operating budget and both make several hundred millions of dollars in cuts from the current FY 2016 spending. But with about a month remaining before the Legislature’s scheduled April 17 adjournment, several big spending issues are still unresolved that will affect the final bottom line: (1) A budget figure for oil and gas tax incentive payments, which depends on what happens to House Bill 247,…

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Legislators arrive in Juneau: Meet grim budget reality

Legislators arrive in Juneau: Meet grim budget reality

The state Legislature convened its 2016 regular session Jan. 19 amid fresh concerns about plummeting oil prices and state revenues. It’s isn’t a pretty picture: Back-to-back $3 billion-plus budget deficits and draws from state cash reserves. If there’s a silver lining it is this: Pressure is growing on legislators to adopt a fiscal plan, tapping other resources, such as investment earnings, to offset lower oil income. Several Senate leaders have endorsed the idea of using Permanent Fund earnings, but the…

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Governor unveils new fiscal plan Oct. 28 in Juneau

Governor unveils new fiscal plan Oct. 28 in Juneau

State Attorney General Craig Richards unveiled Gov. Bill Walker’s new fiscal plan, in concept form, in a Oct. 28 briefing to legislators in Juneau. Essentially the plan calls for bulking up the Permanent Fund by transferring in other state savings accounts like the Constitutional Budget Reserve and also having certain oil revenues flow to the Fund instead of to the state general fund. The bulked-up Fund would then be managed like one of the large endowments that fund major universities…

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Alaska LNG Project may opt for larger pipe diameter: Governor

Alaska LNG Project may opt for larger pipe diameter: Governor

Alaska gas producers are considering expanding the pipeline size for the planned $50 billion-plus Alaska LNG Project from 42 inch to 48 diameter pipe, Gov. Bill Walker said Friday in an interview. The state of Alaska is a partner in the project with producers BP, ConocoPhillips and ExxonMobil. Walker has pushed for the larger pipe size to provide capacity for shipping more North Slope gas, the governor said. “If the pipe is expanded the state and the producers have agreed…

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Prudhoe will produce 14 billion barrels of oil, companies now say

Prudhoe will produce 14 billion barrels of oil, companies now say

Prudhoe Bay producers now expect to ultimately recover 14.1 million-14.2 billion barrels of oil from the giant Alaska North Slope field, about 60% of the estimated oil in place in the reservoir rock, company managers said. That’s up from 9.6 billion barrels, a 40% recovery, estimated when Prudhoe was first discovered in 1968. “The Prudhoe producers have done a very good job of maximizing recovery, and they’ve had a very high quality reservoir to work with,” said Mark Myers, Alaska’s…

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Repsol plans its new slope development

Repsol plans its new slope development

Repsol has laid out its plans for development of new oil discoveries in the Colville River delta. In an application filed with the U.S. Army Corps of Engineers June 15, the company has proposed construction of three drill sites, an operations center pad and pipelines sufficient to support 60,000 barrels per day of oil production. Once approved, the project would take about three and a half years to construct and would include 76 production and injection wells, a 150-bed operations…

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How much did Legislature cut in 2015? Not much

How much did Legislature cut in 2015? Not much

After all the wrangling over the state budget and extended legislative session and two special sessions, how much of the budget was really cut? Not much, it turns out. The figures are still being tallied but according to the Legislative Finance Division, the professional, and nonpartisan, financial analysis arm of the Legislature, the net state operating general fund reduction in Fiscal Year 2016 over the current FY 2015 is $161.23 million. The reduction in state agency budgets is estimated at…

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