Five new members were elected to the Alaska Support Industry Alliance board at their annual meeting on Oct. 12.
The new members are: Roger Bock, Colville Inc.; Maria Bourne, Denali Universal Services; Udo Cassee, Nordic Calista; Chris Humphrey, EXP Energy Services Inc.; and Jessica Short, Brenntag Pacific Inc.
This year's board president is Liam Zsolt, ASRC Energy Services.
Jeff Baker of Michael Baker International was elected VP government affairs and president-elect.
According to its website the organization's mission is: The Alliance strives to promote responsible exploration, development and production of oil, gas and mineral resources for the benefit of all Alaskans. A nonprofit trade association, the Alliance is made up of more than 500 businesses, organizations and individuals that provide products and services to the oil, gas and mining industries, and represent more than 35,000 Alaskan workers.
Alaskan Frontier coming home
In preparation for increasing crude oil production in Alaska, on Oct. 12 Overseas Shipholding Group Inc. said it is purchasing from BP Oil Shipping Company USA the tanker vessel Alaskan Frontier, a sister vessel to three other Alaskan Class tankers operated by OSG's wholly owned subsidiary Alaskan Tanker Co. Following the expected early November completion of the transaction, OSG intends to reactivate the 1.3-million-barrel capacity tanker which has been in cold layup in Malaysia since 2019.
"The purchase of the Alaskan Frontier brings all four of the Alaskan class crude oil tankers under OSG's ownership at a time when the prospect for expanded crude oil production in Alaska offers great promise for continued and increasing demand for ships of her type," said Sam Norton, president and CEO of OSG.
"Upon completion of shipyard work, which will include lifecycle upgrades on the engines that will improve the performance and longevity of the vessel, we believe that the Alaskan Frontier will be primed to provide additional transportation capacity to suit the needs of our customers in a time of limited availability," Norton said.
The full scope of reactivation work is expected to take approximately one year and will, in addition to the engine upgrades, entail a ballast water treatment system installation and other improvements to prepare her for commercial use by the fourth quarter of 2024.
The total capital commitment for the project, including the purchase price of the vessel, is approximately $50 million.
The engine upgrades for the Alaskan Frontier are considered a lifecycle upgrade, which will be completed by MAN Energy Solutions SE.
OSG said this "comprehensive modernization of each of the four engines onboard will improve performance and fuel efficiency and also prepare the engines for possible methanol fuel in the future."
OSG said it expects that the fuel efficiency gain will result in 15-20% fuel savings as compared to the vessel's current consumption, leading to a meaningful reduction in carbon output.
"The significant capital investment being made will permit the company to operate the vessel for a longer period of time and with fewer maintenance costs for its remaining life," OSG said.
OSG is traded on the New York Stock Exchange. It provides liquid bulk transportation services in the U.S. Flag markets. OSG's U.S. Flag fleet consists of Suezmax crude oil tankers doing business in Alaska, conventional and lightering ATBs, shuttle and conventional MR tankers, and non-Jones Act MR tankers that participate in the U.S. Tanker Security Program.
All four of the Alaska tanker fleet are ABS classification A1 oil carriers and home port in Portland, Oregon.
In addition to the Alaskan Frontier, they are the Alaskan Explorer, Alaskan Navigator and Alaskan Legend.
Concessions re. Beaudreau replacement?
E&E News reported on Oct. 12 that a nomination to replace outgoing U.S. Deputy Interior Secretary Tommy Beaudreau who resigned Oct. 4 will give Senate Democrats and Republicans the opportunity to scrutinize the administration's energy policies and possibly gain some concessions in exchange for their support.
Robert Dillon, a public policy adviser at ConservAmerica and a former staffer to Alaska Sen. Lisa Murkowski, reportedly told E&E News that Republicans are concerned about leasing federal lands and waters for oil production, building energy infrastructure and developing resources such as oil and gas and critical minerals.
"That's going to be a flashpoint and a real focus" as the Senate debates Beaudreau's replacement," Dillon was quoted saying.
Beaudreau's departure from the agency is at the end of October.
According to E&E News's Oct. 12 story, "the White House and the Interior Department this week declined to comment on their Beaudreau replacement plan," which may or may not include naming a replacement.
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As previously reported in Petroleum News, on March 13, Beaudreau signed the record of decision, or ROD, for the supplementary environmental impact statement for the $7-7.5 billion Willow project in the National Petroleum Reserve-Alaska. The ROD allowed the development to proceed but denied two of the five drill sites that ConocoPhillips had proposed.
The ROD also removed an option to consider future development of one of the dropped drill sites. And ConocoPhillips relinquished leases it held on about 68,000 acres in NPR-A. Interior said that the relinquished leases would reduce by one-third the surface footprint of the Bear Tooth unit that includes the Willow field.
The ROD garnered strong criticism from environmental groups and guarded optimism from the state of Alaska and the state's oil industry.
When Interior said Beaudreau was stepping down it did not give a reason for his departure. But U.S. Interior Secretary Deb Haaland described Beaudreau as a valued counselor and friend and said "his legacy will continue" at the department.
In a statement from Interior following his swearing in on June 23, 2021, Beaudreau was quoted as saying, "I am honored to be back at the Department of the Interior as deputy secretary at this critical time for our country. The Interior Department plays a key role in President Biden's economic, environmental, and racial justice agenda, and I am thrilled to join Secretary Haaland's team to delivery for the American people."
Beaudreau previously oversaw energy development programs at Interior during former President Barack Obama's administration.
He was the first person to head the Bureau of Ocean Energy Management, or BOEM, which oversees offshore oil and gas and renewable energy leasing.
Various environmental groups have criticized Beaudreau, saying he is too close to industry. When he was a partner in law firm Latham & Watkins, they noted that he represented several coal, oil and gas, pipeline and mining companies, including TotalEnergies and BHP Group.
Nonetheless, Beaudreau was seen as a more moderate compromise for deputy Interior secretary after the White House redacted its initial choice, Elizabeth Klein. Even Senate moderates said she was too far to the left, while 89 senators voted favor of Beaudreau's confirmation.
At his confirmation hearing Beaudreau was asked to respond to criticism that he was too close to the oil and gas industry. He said he accepts criticism, that it "comes with holding these roles."
But he said he was "a little bewildered" by some of the criticism because of "what I believe was a very strong track record during the Obama administration on conservation," plus what he described as his "tough but fair-minded" reputation as a regulator.
Born in Colorado, Beaudreau was raised in Alaska and currently resides in Washington, D.C.
--Oil Patch Insider is compiled by Kay Cashman
