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Morning Headlamp - Requests for Fiscal Certainty from State Fall on Deaf Ears

Clarity, please


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ImPORTant developments to come. Alaska's Port of Nome, the most northern port in the state, has pushed on the most recent US water infrastructure bill, arguing that accommodations for larger vessels will not only cut operating costs for the maritime industry in the Arctic but also translate into lower transportation costs. If successful, the Port hopes to tap the small but growing Alaska market that may eventually gain new access via an Arctic deep-draft port. "We've been anxiously awaiting the passage and hoping that it would pass and glad to see that it did," Nome Port Director Joy Baker told JOC.com "We hopefully will see some movement here in the next 60 to 90 days."

 

Clarity, please. Larry Wood, President of Terra Resources, Ltd., penned a commentary in the Alaska Journal of Commerce warning Governor Walker to "provide fiscal certainty, or watch the money go to other developments outside of Alaska." Discussing the state's involvement with the Alaska LNG project, Wood emphasized the need for clarity when it comes to the state's oil and gas tax structure. According to Wood the state should, "deregulate and reduce taxes in the face of the current recession, and stop growing government. Our economy is slowing, there is a worldwide depression; it is time to face reality."

 

According to Reuters, the biggest divergence between U.S. and Asian gas prices in a year has created an opportunity for tankers delivering liquefied natural gas, with most departures from a key Louisiana terminal in the last month-and-a-half heading toward East Asia, shipping data released on Wednesday show. "China is experiencing colder-than-normal conditions, demand has kicked higher and prices have followed," said Matt Smith, director of commodity research at energy data provider ClipperData in Louisville, Kentucky.

 

The Alaska Industrial Development and Export Authority board of directors unanimously approved a resolution to fold Fairbanks Natural Gas into the borough-owned startup utility Wednesday afternoon.

 

"I'm concerned that we're going to have four elected officials that will act not as public servants but politicians and will set rates not what is best for the public utility, but what's best for their reelection bid…I lived through 1970 and 1980 and 1990 when I saw the city of Fairbanks MUS deteriorate little, by little, by little because we had city councils and mayors who were elected that would not take the recommendation of the utility, would not raise rates, would not support bonds," AIDEA Board member Gary Wilken said. "Even though the utility was falling apart, they valued their seat more than they valued doing what was right."

 

First Reads

Alaska needs options for its natural gas
Alaska Dispatch News, Tim Bradner, January 11, 2017

'Fiscal certainty' is an idea whose time has come
Alaska Journal of Commerce, Larry Wood, January 11, 2017

State OKs gas utility merger, cautions against repeating past mistakes
Fairbanks Daily News Miner, Matt Buxton, January 11, 2017

Ports bill paves way for deep-water Alaska port
JOC.com, Reynolds Hutchins, January 11, 2017

U.S. shifts LNG exports to Asia as arb opens up
Reuters, January 11, 2017

AIDEA moves to advance Interior gas project, shed utility
Alaska Journal of Commerce, Elwood Brehmer, January 11, 2017

US Alaska Cosmopolitan Project Panorama Oil and Gas Upstream Analysis Report - Research and Markets
Business Wire, January 11, 2017

AK Headlamp
A project of the Alaska Support Industry Alliance
3301 C Street
Anchorage, AK 99503

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