Archive | Beaufort and Chukchi Seas

Same Old Tired Playbook: When in Doubt, Enviros Head Straight to the 9th Circus

Long overdue and considerable developments have recently been made toward finally access the job-creating energy reserves that remain under the federal government’s lock-and-key along the Beaufort and Chukchi Seas. The Interior Dept.’s bureaucracy that oversees offshore energy production – MMS – gave a green light for responsible production in the beginning of December, as we’ve written about.

But that’s not stopping those who are opposed to creating jobs and economic activity through accessing the estimated 15 billion barrels of recoverable oil and 76 trillion cubic feet of natural gas from thwarting these commonsense efforts. Predictably, they’re heading straight to the 9th Circuit Court of Appeals.

Reuters reports this under the headline “Shell offshore oil drill plan in Alaska challenged”:

Environmental and Alaska Native groups have filed a legal challenge seeking to overturn U.S. approval of Royal Dutch Shell Plc’s plans to drill up to three wells this year off the shore of Alaska, representatives said on Wednesday.

Late on Tuesday, the coalition of groups filed its challenge to drilling in the remote Chukchi Sea. The petition in the 9th Circuit Court of Appeals seeks to void the U.S. Minerals Management Service’s Dec. 7 approval of Shell’s plan for wells about 60 miles off Alaska’s northwestern coast.

Shell fired back, though, with actual facts, substance and coherence:

“It’s our belief the MMS was thorough in its technical and environmental evaluation of our 2010 Exploration Plan and that Shell has demonstrated its ability to operate in the Arctic in an environmentally responsible manner,” Shell spokesman Curtis Smith said in a statement. “A tremendous amount of work went into writing and evaluating this permit and we fully expect the MMS to be successful in defending its approval.”

Smith said “Shell has already completed four years of successful seismic and shallow hazard work in the Chukchi Sea – an area that could be home to some of the most prolific, undiscovered hydrocarbon basins in the U.S.

Thankfully, Alaskans have a fighter for jobs and secure energy as their chief executive. UPI reports this about Gov. Sean Parnell’s ongoing efforts to expand Alaska’s energy economy under the headline “Drill, baby, drill, says Alaska’s Parnell”:

“We will draw on that timeless Alaskan strength and ingenuity to make it happen,” he said. “We will not settle for any less than maximizing recovery of Alaska’s gas for Alaskans’ benefit.”

He pointed to potential oil and gas discoveries in Alaska’s outer continental shelf as a further source of state revenue in a stagnant economy still crippled by the recession.

I have made exploring and developing the OCS our priority,” he said.

Posted in Beaufort and Chukchi Seas, Jobs, RevenueComments (1)

GETTIN’ CLOSE: Access to Beaufort, Chukchi Energy Nearing

It’s been a long time coming, but finally substantial and measurable progress is being made toward finally unlocking the job-creating energy resources below the Beaufort and Chukchi seas. Imagine that? Well, you should. And can.

The Alaska Journal of Commerce’s Tim Bradner peels the layers back in “Shell one step closer to drilling in Beaufort, Chukchi seas”:

Shell Oil is a step closer to testing oil and gas prospects in the Beaufort and Chukchi seas this summer.

The U.S. Environmental Protection Agency has issued a draft air quality permit for Shell’s 2010 exploration program in the Alaska Chukchi Sea, and the company says it is now “guardedly optimistic” that it will be able to clear hurdles in time to drill in the summer open-water season in the Arctic, a Shell official said Jan. 8.

Pete Slaiby, Shell’s vice president for Alaska, said the agency’s release of a final draft air permit, actually a second version of an initial draft released last fall, is a positive step in Shell’s efforts to drill on leases for which it paid $2.2 billion in a 2008 outer continental lease sale in the Chukchi Sea.

Shell’s Slaiby describes EPA’s commonsense decision to move forward in the permitting process as a “big step”:

“The announcement is good news, but the length of the public comment period combined with likely appeals still pushes the boundaries of our ability to drill in 2010,” Slaiby said. “Obviously, the windows in which we have to operate are limited and a decision to move forward is an extremely expensive one. We will continue to monitor our options in the days ahead as we get closer to making that critical decision.”

Alaska’s two senators, Begich, a Democrat, and Republican Lisa Muskowski, provided important support for the permit, as did Republican Gov. Sean Parnell, Slaiby said.

Expanded access to Alaska’s sizable energy reserves, though, could all be for naught if excessive taxes in the state discourage production and drive businesses overseas. Gov. Parnell understands the need to balance responsible production with a tax code that will promote jobs and economic activity in the state.

The Associated Press reports this today under the headline “Alaska governor pushes changes to state energy tax”:

Gov. Sean Parnell said Thursday that he wants to give oil and gas companies greater incentives to do business in the state, a plan he says will boost production and create potentially hundreds of new jobs for Alaskans.

The plan comes amid forecasts of slumping oil production on Alaska’s North Slope and concerns by some Republican lawmakers that a state tax on oil and gas production – passed two years ago at the urging of then-Gov. Sarah Palin – is doing more harm than good and hindering new development.

Parnell said the recommendations strike a balance between protecting Alaska’s interests and declaring the state open for business. While the state currently has billions of dollars in budget reserves, Parnell said its economy is struggling and he’s trying to create more jobs and opportunities. The estimated hundreds of millions of dollars in additional tax credits are a small price to pay, he said, for a state that runs on oil and gas revenue.

And Sean Cockerham at the Anchorage Daily News reports this in a story entitled “Parnell seeks investment incentives for oil companies”:

Parnell said Thursday he doesn’t want the tax rate lowered, but does want tax credits for investments. His announcement comes as the oil companies and many Republican state legislators maintain Alaska’s oil taxes are too high and are driving away investment. This will be a battlefront in the legislative session which begins next week and in this year’s governor’s race, with candidates running on opposite sides of the oil tax issue.

Parnell said a new Department of Revenue study found the oil-tax system generally works well and that oil companies are increasing investment and jobs in the state. But he said there are incentives the state can give to create more economic activity.

“The numbers speak for themselves. Investment has been up in the industry. But frankly it could be better, that’s why we are offering incentives and credits,” Parnell said.

The Dept. of Revenue study on oil taxes can be viewed HERE.

Bottom line: Increasing access to Alaskan energy, while keeping taxes low for anyone that uses energy, is key to strengthening our national and economic security. Folks in Alaska overwhelmingly understand this. And a clear majority of Americans are realizing this, too.

Posted in Beaufort and Chukchi Seas, Jobs, RevenueComments (2)

All In This Together

We think it’s strange, more than anything else – this near-universally held view among energy reporters from the Lower-48 that all native Alaskan communities oppose the responsible development of the state’s abundant energy resources.

Now, we’re not saying that the native population is a monolith on this question; some have consistently opposed exploration for their own unique reasons. Here, the Gwich’in community comes to mind – folks whose principles are so strongly aligned against development that they opposed exploration on the coastal plain of ANWR without even living there. But, by and large, the natives’ position on energy exploration is pretty similar to the rest of the Alaska’s: If you can do it right, and do it safely, and generate revenue and jobs in the process – why the hell would anyone oppose a thing like that?

Heck, according to the dispatch we read in the Anchorage paper this morning, some native groups are actually teaming up with local energy producers to ensure this work gets off the ground offshore:

Shell is partnering with Olgoonik Corp., the Native village corporation for the Chukchi Sea coast village of Wainwright, and Ukpeaegvik Inupiat Corp., the Native village corporation for Barrow, to operate logistics bases in Wainwright and Barrow this summer, Shell spokesman Curtis Smith said.

And apparently Shell’s not the only operator in the area looking to partner with local native communities to turn Wainwright into an effective logistics hub for its offshore exploration activities. Conoco’s contributing to the effort as well:

Conoco Phillips anticipates using Wainwright as a base for small vessels and as a helicopter base in its early exploration of the Chukchi Sea, a Conoco spokeswoman said. Conoco plans to drill in the Chukchi in 2012.

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (0)

Will You Permit Me a Dance?

Imagine a world where one, single government agency would study all potential impacts of energy exploration offshore, and then, upon completion of its work, however long it needed to take, be empowered to issue one, single permit to allow that project to proceed. Now imagine a world with no heaven — it’s easy if you try. No hell below us; above us only sky. Good tune, right? Snap out of it, man: No such government office exists. Even so, the good guys score a win every now and again – and the news out of EPA today on Shell’s pending air permit would certainly qualify as that.  

We’ll let Reuters’ Alaska writer take the story from here:

The U.S. Environmental Protection Agency on Thursday tentatively approved a key air-quality permit that would allow Royal Dutch Shell to conduct oil-drilling operations later this year in Alaska’s Chukchi Sea.

The permit would allow emissions from the drilling ship and associated vessels that Shell plans to mobilize in the Chukchi during the summer and autumn open-water season. …

“We very much appreciate the work done by EPA Region 10 to issue Shell a draft air permit for our 2010 Chukchi drilling program,” Pete Slaiby, Shell Alaska’s vice president, said in a statement. “The issuance of this draft permit starts the clock on a critical timeline of events that will ultimately determine if we can explore our Alaska leases in 2010,” he added.

Interestingly, word of EPA’s long-awaited decision on the air permit hit our mailboxes a full 18 hours before we read about it on the Reuters site. Who gets credit for breaking the story? Not exactly sure it’s the most scientific calculation ever made, but a press release from new Alaska senator Mark Begich migrated into our Outlook at 5:35 PM yesterday afternoon. And the sentiment it contained hit the target squarely on the mark:

“Alaska has long been America’s energy storehouse and a green light on this Shell development means Alaska’s energy will continue to help fuel our nation’s factories and automobiles,” Begich said. “It has become increasingly clear that energy policy is national security policy, and the U.S. needs to focus more on production of our rich energy resources right here at home. Let’s stop paying billions a year to hostile countries and start putting Alaskans to work.”

But while it might’ve slid into a home a half-second late, the Reuters piece is indispensible in one key regard: It adds some much needed context to the challenges that remain before a single drop of oil can ever be produced in the Chukchi. Shell manager Peter Slaiby lays out the landscape in an extended quote toward the bottom of the piece:

“While today’s announcement is good news, the length of the public comment period combined with likely appeals still pushes the boundaries of our ability to drill in 2010,” he said in his statement. “Obviously, the windows in which we have to operate are limited and a decision to move forward is an extremely expensive one. We will continue to monitor our options in the days ahead as we get closer to making that critical decision.”

Ah, yes: The public comment period. Where would we be without it? Seriously: Where would the Interior Department be if it weren’t able to access the sage advice and unique wisdom found in the thousands of identical form letters aggregated and sent in by well-meaning environmental groups? Of course, in reality, these folks aren’t interested in using the public comment period as a force for good – only as a means of delay.

Incidentally, the only public comment period that should matter, in our estimation, is the public hearing that EPA is holding with Alaskans next month – on February 16. The Anchorage paper sheds some additional light on how that effort is slated to go down:

The EPA is taking public comment on its proposed permit through Feb. 17, Begich said. The EPA has tentatively scheduled a public hearing for Feb. 16 in Barrow that would be teleconferenced in Wainwright, Point Lay, Point Hope and Atqasuk, communities that could be affected by Chukchi oil and gas development.

And, by the way: If you can’t make that hearing, you shouldn’t hesitate to shoot off an email from wherever you’re at. According to EPA, you should direct your correspondence here: R10ocsairpermits@epa.gov. And if you click here, you’ll find about 150 other ways in which you can make your voice heard.

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (2)

Like Sands Through an Hourglass, These Are the Fights Over OCS

Just miles away, in the North Pole, Santa’s elves are working ‘round the clock to ensure the Christmas cheer is spread far and wide. At the same, those opposed to responsible, 21st century offshore oil and gas production – and the tens of thousands of good-paying jobs this production could generate – along Alaska’s outer continental shelf (OCS), particularly in our Beaufort and Chukchi Seas, are working just as hard to deliver a nice, big lump of coal in the stockings of those who depend on that energy.

This year has been a roll-coaster of sorts for expanded homegrown energy exploration offshore. There have been set-backs. Major ones. And there have also been flickers of hope, and commonsense advancements towards expanding oil and gas exploration in an environmentally-sound and sensitive way – potentially a huge shot in the arm to Alaska’s economy. Opening Alaska’s deep-oceans for energy exploration also represents a monumental step toward increased U.S. energy security.

KTUU-TV provides a quick end-of-year snapshot of the events that helped shaped the Alaska OCS debate this year. Among the highlights:

The Good

The Outer Continental Shelf in question is the area 20-70 miles off Alaska’s north and west coasts, where offshore drilling proponents say there is potentially 25 billion barrels of oil on tap and another 130 trillion cubic feet of gas.

In March, Northern Economics released a study on the impact of drilling. It was paid for by Shell Oil, the largest lease holder in the Beaufort and Chukchi seas, and showed that OCS development would employ 35,000 people annually over the next 50 years.

“Our 2010 plan of exploration was crafted as a direct result of feedback we got from North Slope stake holders that we were moving too fast, that it was too much and too soon. So the new plan reflects that. It’s one year, it’s one rig, and it’s half the number of wells we had previously planned to drill,” said Curtis Smith with Shell.

In September Gov. Parnell traveled to the nation’s capital to visit Salazar. “We’re gonna stay in full court press mode for as long as it takes to open the OCS,” Parnell said.

But last month the Department of the Interior Minerals Management Service approved Shell’s plan to start exploring in the Beaufort Sea.

Earlier this month the Interior Department approved Shell’s plans to start exploring in the Chukchi Sea.

The Bad

Almost immediately, [Sec. Salazar] put OCS drilling on hold, saying he needed more input from communities affected by exploration.

In late April a Washington, DC court of appeals said the federal lease program did not conduct adequate environmental studies. The court ordered all lease sales to a halt. Shell feared their $2.1 billion in leases in the Chukchi Sea would be taken away.

Shell is still in litigation regarding its five-year plan to drill on the Outer Continental Shelf.

And The Ugly

 The secretary said he’s in no rush to make a decision on offshore drilling.

While some maintain that proper environment and wildlife protections cannot be balanced with responsible, job-creating offshore energy production, the reality is actually quite the opposite. The good news is that these critical facts continue to come to the surface, helping to move the needles of public opinion. The bad news? We ain’t there yet – not by a long shot. And without the help of policymakers in DC, we can’t expect to get there either. Not gonna lie: It’s a bit of a helpless feeling – having bureaucrats in Washington, D.C. control so much of your land, resources and destiny.

As the sun sets on 2009, it’s fair to predict that in a year from now, KTUU will be once again looking back at another year of OCS developments in Alaska. With hope, the story they’ll be telling then will be one of the huge amounts of homegrown energy that is reaching working families, seniors and small businesses; recounting the enormous uptick in economic activity in Alaska and the job created through offshore energy development; and demonstrating that both the environment and wildlife can coexist with offshore drilling. With hope. And this kick-ass blog.

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (0)

‘BOUT. DARN. TIME. MMS Finally Gives Green Light (Well, Sorta) to Chukchi Sea Development

Salazar: “A key component of reducing our country’s dependence on foreign oil is the environmentally-responsible exploration and development of America’s…resources”

Hallelujah. The Interior Department’s bureaucracy that oversees offshore energy production – the Minerals Management Services (MMS) – finally cleared the way earlier today for responsible, job-creating energy production in the Chukcki Sea. Well, not exactly. But, as Sen. Murkowski says: “This is progress.”

Secretary Salazar didn’t exactly wax poetic, but here’s what he said in a press release entitled “Salazar Conditionally Approves Shell’s Exploration Plan For Certain Chukchi Sea Leases”:

A key component of reducing our country’s dependence on foreign oil is the environmentally-responsible exploration and development of America’s renewable and conventional resources,” said Salazar. “By approving this Exploration Plan, we are taking a cautious but deliberate step toward developing additional information on the Chukchi Sea.”

In 2008, Shell’s subsidiary paid $2.1 billion for leases during Chukchi Sea Oil and Gas Lease Sale 193. The 2008 sale was included in the previous Administration’s 2007-2012 Five-Year Oil and Gas Leasing Program to cover leasing for oil and gas in the Outer Continental Shelf for that five-year period.  The Exploration Plan now approved allows Shell to drill up to three exploration wells during the July-October open water drilling season.

“Our approval of Shell’s plan is conditioned on close monitoring of Shell’s activities to ensure that they are conducted in a safe and environmentally responsible manner,” added Salazar. “These wells will allow the Department to develop additional information and to evaluate the feasibility of future development in the Chukchi Sea.

Sens. Murkowski and Begich were also quick to applaud Sec. Salazar and MMS’s for finally getting off their respective cans and moving forward with a commonsense plan that will create good jobs up here and help drive down foreign oil imports from unstable regions of the world.

US Sen. Lisa Murkowski

“This is progress,” Murkowski said. “Today’s announcement from the MMS is an encouraging sign that Alaska’s oil and natural gas resources can continue to play a major role in America’s energy security.”

“While this represents a step forward, significant hurdles remain before exploration can advance in the Chukchi,” Murkowski said.

US Sen. Mark Begich

“This is another positive step for Alaska’s oil and gas industry. While challenges remain, approval of this exploration plan demonstrates Alaska will continue to play an important role in helping meet America’s energy needs.”

“I will continue to work with Interior Secretary Salazar to include protections that address concerns Alaskans and the rest of the nation have to develop these resources in a responsible manner,” Begich said. “The successful development of these reserves and those of the Beaufort Sea are key to the long term viability of the Trans-Alaska Pipeline and the future of the Alaska natural gas pipeline.”

Posted in Beaufort and Chukchi Seas, Energy SecurityComments (0)

Jobs Summit? We’ll Give You a Jobs Summit.

Nearly 16 million Americans officially unemployed. “Real,” unofficial unemployment reportedly past 25 million. And another 11,000 Americans lost their jobs last month. You know what we need? We need a summit. That was the message offered by President Obama yesterday, joined at the White House by lots of folks who loved to be there (“Can I get a box of presidential M&M’s?!) – but not many who are actually on the frontlines of job creation in America today.

You know who is creating jobs, though? Creating jobs despite an aging workforce, winnowing access to resources, and the specter of confiscatory tax rates from the federal government? America’s energy producers. And even though that industry is responsible for more than nine million direct and indirect jobs in this country – and seven and a half percent of its GDP! – you’d have been hard pressed to find a single voice representing those interests at the White House yesterday. Wasn’t a single one of them there.

Guess it’d be sort of like convening a summit on annoying people and forgetting to invite folks like Joan Rivers and Carrot Top, are we right? Consider: One recent study found that 1.2 million jobs could be created if the Administration simply moved forward with a commonsense plan to unlock our nation’s offshore energy reserves.

Another study from the University of Alaska Anchorage study examined how many Alaskan jobs could be created if Washington would finally give us a green light to produce our energy resources safely offshore. Hope you’re sitting down while you’re reading this.

So, how are jobs are we talking? Economists say 35,000 — that’s more than 3 times as many jobs that were lost nationwide last month.

And in terms of payroll; ball park figure? Can you say $72 billion?

But what’s an enormous figure like that mean to every day Alaskans and Americans looking for work? These energy production jobs pay almost $110,000 each year — more than twice the national average income of $43,500.

These economists also determined that “OCS-related employment growth could more than offset losses from the decline of petroleum production on state lands and could help sustain the economy for several decades.”

Here are few key excerpts from the study entitled “Economic Analysis of Future O!shore Oil and Gas Development: Beaufort Sea, Chukchi Sea, and North Aleutian Basin”:

Besides the direct jobs in the oil and gas sector, jobs would be created in other sectors of the economy; these jobs are referred to as indirect and induced jobs. These jobs are generated as a result of the multiplier effects of in-state spending—industry purchases from other Alaska businesses, government spending of OCS-related revenues, and household spending of wages and salaries.

It is estimated that total annual average employment from OCS development—including all the direct, indirect, and induced employment—could be about 35,000 per year on average through 2057, with a peak employment of over 50,000 in 2038. Total wages and salaries associated with OCS development over the 50-year period are estimated to be about $72 billion (2007$).

Posted in Beaufort and Chukchi Seas, Jobs, RevenueComments (1)

Parnell Continues the Fight for Pro-Growth Energy Solutions

While our elected leadership in Alaska continues to fight to unlock billions of barrels of job-creating energy that remains under de facto moratorium by the administration, the media elite in Washington continues to celebrate the “courage” of bureaucrats who go above and beyond the call of duty to put out “ambitious and innovative” research (with taxpayer resources) designed to make it more difficult for Alaskans to access their own energy.

The Washington Post, in its weekly ode-to-the-unappreciated-bureaucrat series, profiles how one such USGS staffer has worked relentlessly over the past few years to create a statutory justification for preventing the responsible development of energy – on the grounds that what’s good for Alaska’s economy is somehow inimical to the interests of Alaska’s wildlife.

For Leslie Holland-Bartels of the U.S. Geological Survey (USGS), the inclusion of Alaska’s polar bears as a threatened species under the Endangered Species Act was a great accomplishment.

But the 2008 federal designation also signaled much more — the broader scientific linkage between global warming and significant changes to wildlife, critical ecosystems and biodiversity.

Following their discovery, many environmental groups wanted to use the polar bear findings as justification for stronger climate change rules. Although these proposals were rejected by President Bush and then by the Obama administration, the Interior department has proposed using the data to designate more than 200,000 square miles of land, sea and ice along the northern coast of Alaska as a critical polar bear habitat.

We all care about the well-being of our wildlife, our environment and our natural resources. There can and must be an appropriate balance to protect them all, while also ensuring that economic activity is not prevented in the process.

And that’s exactly what Gov. Sean Parnell is fighting for, as we’ve written about previously on this blog. He also understands that Alaska jobs and economic security cannot be compromised.

Dan Joling of the Associated Press quotes Parnell in a piece under the headline “Alaska fights to reverse polar bear listing:”

“We’re going to take every step we can to fight for Alaskan jobs and our economy,” he says.

And at the Resource Development Council’s 30th annual conference, Parnell told the crowd this (AUDIO):

“The Endangered Species Act is not a land-use planning tool and must not be used to complicate, delay, and ultimately halt energy exploration and production in Alaska,” Governor Parnell said. “We’ll take Alaska’s fight to the mat to make sure the ESA is used only to protect species threatened with extinction and not as a tool to lock up our land.”

Posted in Beaufort and Chukchi Seas, Energy Security, Jobs, RevenueComments (0)

Awash in fossil fuels … Especially in Alaska

Thanksgiving is near. And while many families and friends will travel long and far to celebrate and give thanks for their blessings this holiday season, it’s safe to say that seasonal travelers will be universally unthankful for higher gas prices they will pay at the pump.

USA Today reports that AAA “expects 2% more travelers on roadways this year than last, for a total of 33.2 million people.” Under the headline “Higher gasoline prices greet Thanksgiving travelers,” America’s newspaper also reports:

Thanksgiving travelers will find gasoline prices much higher than last year with little hope for respite heading into the rest of the holiday season, oil and gas analysts say.

The national average for a gallon of regular gas was $2.64 on Monday, slightly less than a month ago but up 72 cents a gallon from a year ago, the auto club AAA says.

Increasing domestic energy production – especially in Alaska’s resource-rich Beaufort and Chukchi Seas – would help drive down and stabilize prices at the pump for every single American family. At the same time, safe, responsible, 21st century energy exploration could create much-needed economic activity and hundreds – if not thousands – of good paying jobs at a time when they are most needed. With unemployment at a 26-year high, and real jobless rate near 17.5 percent, producing more homegrown energy cannot wait.

So how much energy do we have, and what’s stopping us?

Well, in a recent Washington Post column, George Will writes:

In 1914, the Bureau of Mines said that U.S. oil reserves would be exhausted by 1924. In 1939, the Interior Department said that the world had 13 years’ worth of petroleum reserves. Then a global war was fought, and the postwar boom was fueled. In 1951 Interior reported that the world had . . . 13 years of reserves. In 1970, the world’s proven oil reserves were an estimated 612 billion barrels. By 2006, more than 767 billion barrels had been pumped, and proven reserves were 1.2 trillion barrels. In 1977, scold in chief Jimmy Carter predicted that mankind “could use up all the proven reserves of oil in the entire world by the end of the next decade.” Since then the world has consumed three times more oil than was then in the world’s proven reserves.

But surely now America can quickly wean itself from hydrocarbons, adopting alternative energies — wind, solar, nuclear? No.

In his column entitled “Awash in fossil fuels,” Will adds this:

Today, wind and solar power combined are just one-sixth of 1 percent of American energy consumption.

Edward L. Morse, an energy official in Carter’s State Department, writes in Foreign Affairs that the world’s deep-water oil and gas reserves are significantly larger than was thought a decade ago, and high prices have spurred development of technologies — a drilling vessel can cost $1 billion — for extracting them.

Despite these huge, known energy resources – particularly in the Beaufort and the Chukchi – Washington and Secretary Ken Salazar’s Interior Department have failed to move forward with commonsense policies that will help realize America’s energy potentials.

And experts are speaking on this critical issue.

The American Petroleum Institute’s chief economist, Dr. John Felmy, writes about the economic benefits, the environmental safeguards and technological advancements the energy industry continues to make each day in today’s Fort Myers News-Press under the headline “Oil and gas drilling is the right solution for Florida right now”:

Today, rigs and operations are clean, green and safe. The oil and natural gas industry has reduced its environmental footprint and minimized any lasting impact on ecosystems or surrounding wildlife.

Offshore rigs are located far from the horizon, and advanced technologies enable nearly pristine development and delivery of natural resources.

After decades of investment and billions of dollars spent on research, companies can now access previously unreachable depths.

Informed lawmakers and pro-drilling advocates have it right.

Let’s protect our economy — and our shores — through safe, clean energy exploration.

Some state legislative leaders right here in the Last Frontier are working to encourage more oil production, even though our state’s offshore reserves – which would generate taxes, revenues and royalties, helping to fund schools, roads, bridges and hospitals – are largely controlled by Washington’s far-away, forceful grasp.

The Anchorage Daily News recently editorialized about the multi-tracked energy plans being advanced in Juneau. Under the headline “What now on energy?,” the paper writes this about the Senate energy proposal:

Other goals on the Senate’s list include promoting a North Slope gas pipeline, encouraging more oil production, preventing energy price gouging, and coordinating the state’s various energy programs. Few would argue with those goals, but Alaskans don’t necessarily agree on how to achieve them.

Posted in Beaufort and Chukchi Seas, Energy SecurityComments (0)

United We Stand: Asking the Secretary to Get Off His Can

In a letter this week from Alaska Senators Lisa Murkowski and Mark Begich and the state’s at-large congressman, Don Young, to Interior Secretary Ken Salazar, the delegation writes:

We write in support of Shell Oil’s application for the 2010 Chukchi Sea plan of exploration (POE). As you are well aware, the Chukchi represents what is certainly among the largest conventional, unexplored oil and natural gas fields in the U.S. Shell has spent years of work and billions of dollars to satisfy the complex logistics, planning, and permitting process required by law. We have previously communicated to you this significance of this energy resources to Alaska’s economy, the Trans-Alaska Pipeline, and domestic energy security.

So how much has Shell spent? Well, according to the delegations release:

Shell Oil, which early last year spent $2.1 billion for exploration rights in the Chukchi, has been unable to proceed with plans to drill up to two exploratory wells on its leases in 2010 because Interior officials have failed to complete a court-ordered environmental assessment in a timely manner.

The delegation didn’t mince words and was straightforward in their release.

Sen. Murkowski

“This delay has gone on long enough. It’s time to get development of Alaska’s resources back on track.”

Congressman Young

“Natural resources are the lifeblood of any developed country and the Chukchi Sea has some of the largest potential in the U.S.”

And in a separate release, under the headline “Begich Pushes Alaska Oil and Gas Development with Top Obama Officials; Calls for Aggressive OCS Development, Gasline Construction,” Alaska’s junior senator says:

“Alaska has long served as this nation’s energy storehouse and with responsible oil and gas development off our coast and a gasline, we can create thousands of good-paying American jobs, supply American homes and factories with clean-burning energy and improve our energy security.”

Sen. Begich’s release also noted that he’s not afraid to buck the party line and full-court press the administration on responsible, job-creating Alaskan energy development:

Begich urged approval of outer continental shelf (OCS) leasing in Alaska’s Chukchi Sea and said construction of an Alaska gasline project can create more American jobs than any single project on the horizon, at a meeting in his office with Interior Secretary Ken Salazar and Carol Browner, special assistant to the president at the White House Office of Energy and Climate Change.

Posted in Beaufort and Chukchi SeasComments (0)

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