Posted Thursday, March 29, 2012 - 8:00 am
The state Senate is continuing its detailed review of state oil and gas taxes, but there are growing worries the clock will run out before any revision of the oil tax can be agreed upon.
Lawmakers must adjourn April 15, although there are procedures where the session can be extended.
The Senate Finance Committee was expected to have its version of the tax change bill, Senate Bill 192, finished the week of March 26. It is possible that the full Senate could vote on the bill and send it to the House in early April.
Posted Thursday, March 22, 2012 - 10:06 am
Mining is growing fast in its economic punch in the state, new studies by the industry show.
In 2011 the industry employed 4,500 in producing mines exploration, up from 3,500 in 2010 in terms of equivalent full-time jobs, according to studies by McDowell Group, the Juneau-based consulting firm.
The average annual pay for a worker in mining reached $100,000 in 2011, up from an average of $95,000 the previous year. State revenues from mining totaled $148 million in 2011, 170 percent up from $58.9 million in 2010, which was also 40 percent up from 2009.
Posted Thursday, March 22, 2012 - 9:34 am
Despite new natural gas discoveries in Alaska’s Cook Inlet utilities in the region will still experience shortages of gas supply by 2014 due to declining production in maturing fields, according to a new study of Cook Inlet gas reserves and regional demand released Monday.
The only practical alternative to deal with the shortfall is the import of liquefied natural gas, said Pete Stokes, commercial manager with Petrotechnical Resources of Alaska, an Anchorage-based consulting firm.
Posted Thursday, March 22, 2012 - 8:39 am
From far Southeast Alaska to the far Northwest, minerals companies are busy with projects. Alaska has seven producing mines now, one more than last year.
The new producing mine is Nixon Fork on the upper Kuskokwim River, a remote location where fuel and supplies must be flown in. Several new mines may move into production the coming years, all in different parts of the state.
Here’s a review of the producing mines and prospects around Alaska:
Posted Thursday, March 22, 2012 - 7:44 am
JUNEAU — Sharp opinion differences over the proposed Pebble mine within the Bristol Bay community spilled out in Juneau March 19.
The occasion was an informal “lunch and learn” noon session for legislators and staff in the state capitol where Bristol Bay Native Corp., the regional Alaska Native corporation for the area, gave a presentation on its activities, finances and dividends paid to shareholders.
Posted Thursday, March 22, 2012 - 7:01 am
When a film producer called up CH2M Hill’s area manager Tom Maloney a few weeks ago to ask if the company’s empty fabrication shop could be used as space for film production, it was the last straw.
Maloney’s job includes keeping the shop full and its people working.
“I was tempted – it was revenue – but I just couldn’t let it happen on the odd chance that we might get some work into the shop,” Maloney said.
Posted Monday, March 19, 2012 - 7:51 am
Repsol E&P USA successfully secured and plugged its Qugruk No. 2 exploration well on the North Slope, the company said March 17.
Repsol encountered a shallow gas pocket and experienced a gas blowout at the well on Feb. 15, and although gas stopped flowing Feb. 16 the company has been working to thaw the rig and achieve control of the well since then.
There was no fire and no injuries in the incident. Gas was safely vented through a gas diverter system.
Posted Thursday, March 15, 2012 - 8:53 am
Repsol USA said it will plug and abandon its Qugruk No. 2 well after drilling crews were unable to repair damage in the well caused by a Feb. 15 gas blowout, a company spokesman said March 14.
“We are going to plug and abandon that wellbore,” Repsol spokesman Jan Sieving said in an emailed statement. “Currently we don’t have plans to re-drill at the location. All efforts are currently focused on safely securing and now plugging the well.”
Posted Thursday, March 15, 2012 - 8:39 am
State agencies have identified some key technology and permitting challenges for a North Slope shale oil play, an official in the state Division of Oil and Gas says.
Alaska-based independent Great Bear Petroleum and Halliburton are working in a partnership to test the production potential of a large shale formation south of the producing Prudhoe Bay and Kuparuk Ruver fields, with the first two test wells planned this spring, said Greg Hobbs, a petroleum engineer in the state Division of Oil and Gas.
Posted Thursday, March 15, 2012 - 8:34 am
With less than four weeks left in the 2012 legislative session, state senators are on the slow track in their work on changes to the state’s oil production tax.
The Senate Finance Committee took up Senate Bill 192 on March 13, a bill passed out of the Resources Committee on March 2. Sen. Bert Stedman, R-Sitka, co-chair of the finance committee, said the panel will continue working on the bill through to the end of the week of March 19.
Posted Wednesday, March 07, 2012 - 11:51 am
Buccaneer Energy’s new Kenai Loop No. 1 gas well near the city of Kenai is performing, producing about 5 million cubic feet of gas per day after about two weeks of steady production, the company says.
Production began Jan. 14, and the gas is being sold to both Enstar Natural Gas Co. and ConocoPhillips Alaska Inc. under contracts Buccaneer has signed with both companies.
Posted Wednesday, March 07, 2012 - 11:41 am
Repsol E&P USA has encountered a new problem, a blockage in the well bore of its Qugruk No. 2 exploration well on the North Slope, which has delayed attempts to bring the well under control.
Repsol encountered a shallow gas pocket Feb. 15, which resulted in a gas blowout and evacuation of the rig. The well is on the Colville River delta, west of the producing Prudhoe Bay and Kuparuk River fields.
Posted Wednesday, March 07, 2012 - 10:36 am
Given the distances, high costs and problems in workforce recruitment, Alaska’s hospitals feel they’re doing OK in serving health care needs in the state.
National medical-care review groups seem to agree. Health Strong Index ranked two of the state’s smaller hospitals, South Peninsula Hospital in Homer and Ketchikan General Hospital, among the top 100 U.S. “critical access” hospitals.
Critical access is a special federal designation for small community hospitals that offer 24-hour emergency services.
Posted Thursday, March 01, 2012 - 8:23 am
BP has completed the first of five pilot wells drilled to test production from the Sag River formation that overlies the main producing reservoir of the Prudhoe Bay field, company officials told state legislators Feb. 23.
The test wells involve long, extended horizontal production wells, drilled from the surface at an angle and then turned horizontally to intercept the thin production layer of rocks.
Posted Thursday, March 01, 2012 - 7:44 am
The U.S. Geological Survey has estimated the potential of undiscovered, technically recoverable onshore shale oil and gas resources on the North Slope, with estimates ranging from zero to 2 billion barrels of oil and from zero to 80 trillion cubic feet of gas.
The starting point is zero because shale oil and gas have not actually been produced on the Slope and it is not known whether hydrocarbons can actually be produced, much less whether the production can be profitable.
Posted Thursday, March 01, 2012 - 7:02 am
In what the company described as a “pre-emptive strike,” Shell asked an Alaska federal court for a declaratory judgment on the Department of the Interior’s approval of the company’s Chukchi Sea oil spill response plan, a company spokesman said Thursday.
“We’re not asking for the court to approve the plan but the government’s process in approving it,” company spokesman Curtis Smith said. “We believe any challenge to the approval will be on process, not the merits of the spill plan.”
Posted Thursday, February 23, 2012 - 12:13 pm
Repsol E&P USA was working Feb. 22 to get its drill rig operational and the company’s Qugruk 2 exploration well in the Colville River delta on the North Slope back under control after a shallow gas blowout, officials with the Alaska Oil and Gas Conservation Commission said.
Posted Thursday, February 23, 2012 - 12:11 pm
Alaska military officials are doing their best to soothe ruffled feathers in Alaska over the U.S. Air Force announcement that 21 F-16s based at Eielson Air Force Base near Fairbanks will be relocated to Joint Base Elmendorf-Richardson in Anchorage in 2013.
The relocation of military personnel and families will adversely affect the Fairbanks-area economy.
Posted Thursday, February 23, 2012 - 10:57 am
JUNEAU — The Legislature passed day 40 in its 2012 session Feb. 24, with 50 days left to go before the required April 15 adjournment. The big issues, mainly oil taxes and school funding, are percolating mostly in the background, but lawmakers are making steady progress on their major responsibility, developing the state budget for the next fiscal year, which begins July 1.
Posted Thursday, February 16, 2012 - 8:00 am
Alaska Gov. Sean Parnell is supporting continued work on a land natural gas pipeline to Canada although he is now urging North Slope producers to support an alternative pipeline to a possible large liquefied natural gas project at a southern Alaska port, a state official told a federal agency conducting an environmental review of the project Feb. 13.