Federal Energy Regulatory Commission (FERC) Chairman Patrick Wood (NGP Photo-L) toured Alaska this week, spoke to a 20th anniversary gathering of Alliance members this morning, then headed to Ted Stevens International Airport late this evening for a red-eye flight home.  (NP Photo, with author)

CONFERENCE SYNOPSIS: 

After president Jack Laasch welcomed members and guests, he asked Graeme Lawrie, QHSE Manager for Schlumberger Oilfield Services, to provide his usual, serious and interesting “Safety Minute”.  Then, Laasch asked ConocoPhillips Alaska Inc. President Kevin O. Meyers (NGP Photo, 11-02) to introduce the first speaker.  In his descriptive introduction, Meyers alerted the audience that, “Events in Baghdad could have an almost immediate effect on energy policies in Washington and here in Alaska.”  He said Alaska was capable of and needed to take a number of steps to remain competitive in the world market for sustained industry investment, including: continued stability of the tax environment; removal of uncertainties in the regulatory process, and; providing continuing access to acreage.  He said that the state could continue to support gas pipeline policies.  In addition to Federal fiscal and expediting provisions, a successful project will require fiscal certainty in Alaska.  John E. Lowe, the company’s Executive Vice President for Planning and strategic Transactions, said, “As the largest producer and acreage holder in Alaska, we are certainly interested in investing more here.”  He went on to underscore the importance of Alaska as a legacy asset for the company, providing about 25% of ConocoPhillips’ worldwide production and reserves.  He concluded by supporting Meyers’ earlier comments about Alaska policies, adding that, and “We favor both the Alaska North Slope and Mackenzie Valley gas pipelines.  He said that with appropriate governmental support, “both of these projects could achieve reality.”  (Readers may obtain the complete presentation here.)

Doyon Universal Services President Mark Huber introduced Purvin and Gertz, Inc. Vice President and Director Russell Jacobs.  Jacobs addressed Alliance members in place of the previously scheduled, Roland George.  He described key Alaska gas pipeline project stakeholders as producers, other commercial players (i.e. transportation companies and suppliers), large energy users and governments at the Federal, state and local levels.  He identified major market drivers, including strong U.S. gas demand growth at about 1.5% annually; Canadian gas demand growth at about 2%; future demand which, “will continue to outstrip supply”; and incremental sources of new gas from 2000-2015, including domestic and Canadian production; offshore LNG imports and Alaska supplies.  (Readers may obtain the complete presentation here.)

Alyeska Pipeline Service Company Chief Operating Officer, Dan Hisey, introduced Federal Energy Regulatory Commission (FERC) Chairman Patrick Wood (NGP Photo: Wood with former Alaska regulatory commissioner Jim Posey).  He prefaced the introduction by recalling the renewal process for TAPS.  “The 30 year renewal brings a greater degree of certainty to transportation of Alaskan oil.  Alyeska,” he said, “is ready for another 30 years of operation.”  Wood said Alaska is the 46th of the 50 states he has visited, and, “wished I had come sooner.”  He described a thorough tour and briefing of the state: it’s energy production and potential.  He announced today’s signing of a memorandum of agreement with Chair of the Regulatory Commission of Alaska, Nan Thompson (NGP photo, with Wood and author), culminating several years of effort between the agencies to develop an efficient mechanism for organizing future collaboration and joint hearings.  Wood stressed that one of his highest priorities is to assist President Bush in accessing Alaska North Slope gas.  “The most important thing we can do for our economy is to bring Alaska natural gas to market,” he said.  He added that the country needed a gas pipeline to be in operation by close to the end of the decade to combat a “flat but declining trend” in Lower 48 gas production. 

Jeanine St. John of Lynden Logistics, Inc., introduced Petrie Parkman & Co. Co-founder, Thomas A. Petrie.  Petrie said that looming Lower 48 gas supply concerns is setting the stage for Alaska gas development, signaling possible bi-partisan support for gas development, “at a price”.  He said that meritorious ANWR arguments “lack traction” in the Lower 48 and that significant action could be delayed until after 2004 elections,  “absent a major supply crisis.”   (Readers may obtain the complete presentation here.)

Pelican Hill Oil & Gas, Inc. president, Al Gross shared a presentation with Paul H. Daggett, Ph.D, Petrotechnical Resources of Alaska.  The presentation focused on Alaska’s Cook Inlet oil and gas reserves and the important role now being played by new technology, including 3-D Seismic.  The slides used are dramatic.  (Readers may obtain the complete presentation here..)

Other scheduled conference highlights included:

• Jack Williams, Alaska Production Manager for ExxonMobil Production Company introduced speaker Michael E. Flynn, Vice President Americas for ExxonMobil.
• Comments: Bob Stinson, Alliance past president and president of Conam Construction Company.