Northern Gas Pipelines 2-20-12 O&G Briefs
How they voted - Chicago Post-Tribune - OIL EXPORTS AND KEYSTONE XL PIPELINE: The House rejected an amendment sponsored by Rep. Edward Markey, D-Mass., to the Protecting Investment in Oil Shale the Next Generation of Environmental, Energy, and Resource Security Act (H.R. 3408). The amendment would have required oil transported by the Keystone XL pipeline to be used in the U.S. unless a presidential waiver was granted on the grounds that exporting the oil would not increase prices or would not increase dependence on imports from hostile nations. The vote, on Feb. 15, was 173 yeas to 254 nays. (The House of Representatives passed out significant energy legislation last week. We will see what the Senate does. - AG)
Tax advice: Fundamental reform is needed in the oil patch – Fairbanks Daily News Miner, Editorial - “The three major oil companies are in a ‘harvesting mode,’ which means their main objective is drawing cash out of Alaska to invest elsewhere,” van Meurs told the committees during his presentation Tuesday. “The reasons for this are: No large and attractive projects available in Alaska under current fiscal terms for major oil companies (and) attractive opportunities outside Alaska.”
Alaska must sustain oil production: Falling investments should be reversed – Fairbanks Daily News Miner, Cynthia Henry - The reason is Alaska’s high production tax, ACES. Under ACES, there is little incentive to invest in the legacy fields, which hold much of the oil. As ConocoPhillips’ chief economist told Meet Alaska: “Alaska has the highest tax rate of any of the developed countries that ConocoPhillips might operate in. And of course that tax rate goes up substantially as the oil price goes up. So there is no upside for investment in Alaska.”
Domestic production eyed as gas prices head toward record-breaking height - Fox News - Nationally, gas prices are $3.53 a gallon, up 25 cents since Jan. 1, and likely headed to $4.25 a gallon by late April. Republicans have demanded more oil production at home, as well as building the Keystone XL pipeline across the middle of the U.S. to allow oil from Canada to reach Texas refineries.
Canada threatens trade war with EU over tar sands - The Guardian, Damian Carrington - "Canada will not hesitate to defend its interests, including at the World Trade Organisation," state letters sent to European commissioners by Canada's ambassador to the EU and its oil minister, released under freedom of information laws.
Mitsubishi to Invest in Encana's Natural Gas Development Project in British Columbia, Canada - Market Watch - MC has established a wholly owned subsidiary company Cutbank Dawson Gas Resources Ltd that will become the Partner to CRP. Under the transaction agreements, MC will pay CAD$1.45 billion as an upfront payment upon closing, and will also pay another CAD$1.45 billion over the coming five years that will be used to fund an incremental 30%, in addition to MC's 40% of the Partnership capital investments, to develop CRP's asset in accordance with an agreed-upon development plan.
Posted: February 20, 2012