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Morning Headlamp - Russians are kicking our rear


Welcome back. According to an Alaska Gasline Development Corporation (AGDC) press release, the Corporation, ExxonMobil, BP and ConocoPhillips have concluded agreements that will enhance AGDC's ability to progress an Alaska liquefied natural gas export project to commercialize Alaska's North Slope natural gas resources. According to the agreement, "the arrangement promotes the seamless continuation of the regulatory, commercial and optimization efforts. AGDC plans on completing the Federal Energy Regulatory Commission (FERC) pre-filing process, building upon the draft environmental and socioeconomic resource reports prepared by the parties during Pre-FEED." Headlamp is happy to hear the recent drama-filled relationship has come to an agreement heading into the New Year.


According to an Alyeska Pipeline Service press release, the volume of oil moved through the Trans Alaska Pipeline System increased in 2016, the first calendar year-over-year increase since 2002. In 2015, the pipeline moved 185,582,715 barrels and averaged 508,446 barrels per day. The predicted total amount moved in 2016 is around 517,500 barrels a day – a 1.8 percent increase. Entering its 40th year of operations, the pipeline has mostly reported annual throughput declines since its peak flow of 2 million barrels a day in 1988. The only exceptions were slight year-to-year increases noted in 1991 and 2002.


Alaskans are eagerly anticipating the selection of a new regional administrator for the Environmental Protection Agency, hoping that this time, an Alaskan will oversee the regional office. The position is key to how the agency is managed in the state, said John Iani, the last regional administrator to come from Alaska. "EPA is very thinly managed," with regional administrators reporting directly to the top in Washington, Iani said. The current Region 10 administrator is Dennis McLerran, a native of Washington state. He oversees about 500 employees and a $300 million budget, according to the agency. "We'll be putting names up," Rep. Don Young, R-Alaska, said of a variety of federal agency positions, in an interview earlier this month before Congress broke for the holidays.


The Interior Gas Utility announced it's close to signing an agreement with the Alaska Industrial Development and Export Authority to consolidate the utilities under local control and chart the course for its development for the next decade. "Right now, we have two utilities serving the broader Fairbanks community in the borough, and this agreement lays the groundwork for it to be consolidated into local control," IGU general manager Jomo Stewart said. "It lays out the financing for that to happen, but also to expand the system for more service at a lower cost to more people."  Headlamp would note that AIDEA paid $52 million dollars to lower the cost of energy in Fairbanks for less than 2000 people. Such attempts by government to expand and provide more energy service at lower costs have meant massive government funded subsidies in the past.  


First Reads

It's Alaska's turn for EPA regional administrator, but will Trump listen to tradition?
Alaska Dispatch News, Erica Martinson, January 1, 2017

Congressional delegation decries drilling prohibition
The Arctic Sounder, December 30, 2016

While Obama Smiles About 'The Ecosystem,' The Russians Are Kicking Our Rear in Arctic Drilling
Independent Journal Review, Andrew Clark, December 30, 2016

Alaska oil pipeline volumes usually decrease each year. But 2016 was different.
Alaska Dispatch News, Jeannette Lee Falsey, January 1, 2017

Interior Gas Utility, Fairbanks Natural Gas close in on merger
Fairbanks Daily News Miner, Matt Buxton, January 2, 2017

Alaska's retail sector is shedding jobs after years of growth
Alaska Dispatch News, Jeannette Lee Falsey, January 2, 2017

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Anchorage, AK 99503


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