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Palin says drilling for gas in the offshore Arctic will slow climate change

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sarah palin climate change

Alaska Gov. Sarah Palin acknowledged Tuesday that global warming was harming her state but said stepped-up natural gas production could mitigate its effects.

Speaking at a hearing before Interior Secretary Ken Salazar — the third of several he is holding across the country to consider renewed oil and gas leasing on the outer continental shelf — Palin said that relatively clean-burning natural gas could supplant dirtier fuels and slow the discharge of greenhouse gases into the atmosphere.

“We Alaskans are living with the changes that you are observing in Washington,” she said. “The dramatic decreases in the extent of summer sea ice, increased coastal erosion, melting of permafrost, decrease in alpine glaciers and overall ecosystem changes are very real to us.”

In the past, Palin has questioned the science behind predictions of sea ice loss. Her administration sued the federal government to block endangered-species protections for polar bears, whose habitat is melting. When she was the Republican vice presidential nominee last year, partisan crowds cheered her on by chanting, “Drill, baby, drill.”

But at Tuesday’s hearing, she made it clear that she recognized the problem of global warming. She cast energy development as part of the answer. “Stopping domestic energy production of preferred fuels does not solve the issues associated with global warming and threatened or endangered species, but it can make them worse,” she said.

Palin acknowledged that “many believe” a global effort to reduce greenhouse gases is needed. “Simply waiting for low-carbon-emitting renewable capacity to be large enough will mean that it will be too late to meet the mitigation goals for reducing [carbon dioxide] that will be required under most credible climate-change models,” she warned.

“Meeting these goals will require a dramatic increase … to preferred available fuels, including natural gas, that have a very low carbon footprint….” she said. “These available fuels are required to supply the nation’s energy needs during the transition to green energy alternatives.”

The Interior Department will be looking with interest at alternative energy prospects across the U.S., Salazar told the more than 1,000 Alaskans at the hearing, but traditional oil and gas will remain part of the energy program.

“I understand the passion I feel in this room today,” he said. “I understand the point of view of people who have subsisted in the fishing industry from time immemorial, and the importance of wanting to maintain that way of life. I understand the sense I hear also from many of the people here that we need to have economic development, we need to have jobs, and oil and gas can be part of that job development.”

The federal Minerals Management Service estimates that Alaska’s offshore basins could hold 27 billion barrels of oil and 132 trillion cubic feet of natural gas.

Alaska officials say opening offshore waters to petroleum production would create 35,000 new jobs with a payroll of $72 billion over the next 50 years. Hundreds of oil-industry workers marched in hard hats outside the hearing with signs urging the government to “Drill Here, Drill Now.”

But conservationists warn that plunging drilling pads into the frozen Beaufort and Chukchi seas and in Bristol Bay could open the door to a catastrophic oil spill in one of the most fragile environments on Earth.

In addition, they voiced skepticism about Palin’s claim that boosting natural gas production would make more time to transition to wind and other forms of alternative energy. “You need to drill in order not to drill: That’s what she said,” said Peter Van Tuyn, an Anchorage environmental attorney who has represented conservation groups and native tribes on Arctic oil and gas issues.

Palin also warned that failure to exploit offshore oil could force early closure of the trans-Alaska oil pipeline and threaten the viability of a proposed gas pipeline from Alaska’s North Slope.

The pipeline once transported 2.1 million barrels of oil a day, nearly a quarter of the nation’s crude oil production, but with old oil fields on the North Slope beginning to tap out, pipeline shipments now are down to about 739,000 barrels a day, and production is continuing to decline.

“By some estimates, without new production from the [outer continental shelf], the TAPS pipeline will fall below its carrying capacity in the next decade,” the governor warned. “Once the pipeline shuts down, it will mean the end of oil production from the North Slope.”

But the state’s own most recent revenue forecasts predict production of 610,000 barrels a day on the North Slope in 2017, before any new offshore leases could be brought into production, and that figure is well within the window needed to continue pipeline operation, said Richard A. Fineberg, an independent oil industry analyst.

“Saying the pipleline will be shut down is like the boy that cried wolf,” Fineberg said. “It’s stretching the truth.”

Salazar’s next hearing is set for Thursday in San Francisco.

— Kim Murphy
Source: http://latimesblogs.latimes.com/greenspace/2009/04/palin-says-drilling-for-gas-in-the-offshore-arctic-will-slow-climate-change.html

A Summer of Lower Gas Prices? Perhaps

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oil pipes summer

BY H. JOSEF HEBERT
Associated Press

WASHINGTON – Gasoline prices are expected to be relatively low this summer, so motorists might want to take to the road despite the dismal economy if the federal government projections hold.

The Energy Information Administration said regular-grade gasoline is expected to average $2.23 a gallon during the April-through-September driving season, although it will likely fluctuate and could jump to more than $2.30 a gallon during the peak driving period in late summer.

But that’s still a bargain compared with last summer, when gasoline cost an average of $3.81 a gallon.

Much lower crude oil prices, which are projected to averaged $53 a barrel this year after soaring as high as $147 a barrel last summer, are the primary reason for the lower prices at the pump.

The EIA report also said U.S. crude oil production is expected to rebound this year by an additional 440,000 barrels, to 5.4 million barrels a day, after a decline last year. The production increase stems mostly from the startup of two huge new oil platforms in deep waters of the Gulf of Mexico. The Thunder Horse platform, which BP began operating late last year, is expected to pump more than 200,000 barrels a day, and Chevron’s new Tahiti platform is expected to produce 125,000 barrels a day by midyear.

The additional production, however, is not expected to significantly change America’s reliance on imports, which still account for about 58 percent of domestic petroleum use.

Howard Gruenspecht, the EIA’s acting administrator, acknowledged the uncertainties surrounding the agency’s price projections. Gasoline prices are largely linked to the price of crude oil, and if the economy begins to recover earlier and stronger than assumed by EIA, prices of both crude and gasoline could be higher than projected, said the report.

“We do try to emphasize the uncertainties in the projections,” said EIA spokesman Jonathan Cogan. “We’re not in the crystal-ball business.”

Two EIA energy reports last year demonstrated the precarious nature of trying to project fuel prices.

A year ago, in April 2008, EIA’s summer forecast predicted oil prices would hover at “near $100” a barrel and gasoline would average $3.54 a gallon for the summer driving season. Crude oil prices, in fact, soared to a high of $147 and motorists paid more than $4 a gallon over much of the summer. EIA then revised its projections, saying crude and gas prices would remain high. In a report in June 2008, it said gasoline would average $3.92 a gallon through 2009, and crude oil $129 a barrel.

After peaking in July, 2008, U.S. gasoline prices dropped to a nationwide average of $1.61 a gallon in late December. Since then they’ve edged higher to last week’s average of $2.05 a gallon. The energy agency attributed the increases to slightly higher crude oil costs and refiners trying to recoup some profits.

The latest EIA report now projects crude oil prices to average $53 a barrel this year, but to increase by about $10 a barrel in 2010.

But there’s a hedge. Stronger-than-expected economic recovery, lower global production or “more aggressive action to cut production” by the OPEC oil cartel “could lead to a faster and stronger rise in oil prices,” cautions the report.

The report also says gasoline will be plentiful this summer with refinery production projected to increase by about 240,000 barrels a day compared with last summer. Total gasoline stocks as of April 1 were slightly less than last year at this time but higher than the five-year average.

Source: http://www.kansas.com/news/nation-world/story/773600.html

Seamec gets $16 Million contract from Dulam International

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seamec limited

MUMBAI, April 17 (Reuters) – Seamec Ltd (SEAM.BO: Quote, Profile, Research) said on Friday it has signed a contract with a Dubai firm, Dulam International, to deploy one of its vessels for twelve months for $16.12 million.

The contract will commence around mid-June 2009, it said in a statement to the Bombay Stock Exchange.

Source: http://in.reuters.com/article/domesticNews/idINBOM1964320090417

California says “No” to offshore drilling

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It’s not often that US Secretary of the Interior Ken Salazar delivers a speech to polar bears, dolphins, jelly fish and sea turtles, who all sit intently on chairs in the audience.  It’s not every day that you see surfers covered in chocolate oil spills.

Salazar was making the opening remarks to a public hearing on the contentious issue of oil drilling off the coast of California, in San Francisco.

U.S. oil and gas drilling at 5-year low

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U.S. oil and natural gas drilling activity dropped to 2004 levels in the first quarter, the American Petroleum Institute said Wednesday.

The U.S. rig count has been declining from last fall’s high of 2,031 rigs and is now less than half that at 1,005, according to the most recent report by Houston-based oil field services company Baker Hughes. Of those, 790 are natural gas rigs.

Public trust doctrine urged in U.S. waters

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A team of U.S. experts says a public trust doctrine could resolve the issue of regulating federal waters to allow oil, wave and wind energy development.

Duke University researchers said since the U.S. Congress lifted a moratorium on offshore drilling last year, lawmakers have grappled with how best to regulate U.S. ocean waters to allow energy development, while managing critical fisheries and marine animal habitats.

The Duke scientists argue establishing a public trust doctrine could provide an effective and ethical solution.

The public trust doctrine could provide a practical legal framework for restructuring the way we regulate and manage our oceans. It would support ocean-based commerce while protecting marine species and habitats, said study lead author Mary Turnipseed, a doctoral student at Duke’s Nicholas School of the Environment.

She said a public trust doctrine is a simple but powerful legal concept that obliges governments to manage certain natural resources in the best interests of its citizens without sacrificing the needs of future generations.

it.moldova.org

Crisis hits North Sea oil search

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The remaining lifespan of the UK’s North Sea oil and gas production risks being halved as the economic crisis has prompted a plunge in exploration in one of the western world’s most important deposits, the industry has warned.

OPEC cuts thwarted as Brazil, Russia grab U.S. market

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As OPEC nations make their biggest oil production cuts on record, Brazil, Russia and the U.S. are pumping more, threatening to send crude back below $50 a barrel as demand slows.

Oil rig workers can refuse flights

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Another major offshore company is allowing its workers to refuse to board flights in the wake of the North Sea helicopter crash which killed 16 people.

Third helicopter incident in a week

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Fresh concerns have been raised over the use of helicopters flying to North Sea oil installations after it emerged another Super Puma helicopter was involved in an incident yesterday — just a week after 16 men died as their aircraft plunged into the North Sea.