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ConocoPhillips CEO Doubles Down on Alaska Oil as Competitors Leave Arctic

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ConocoPhillips CEO Doubles Down on Alaska Oil as Competitors Leave Arctic


ConocoPhillips

COP -1.03%

Chief Govt

Ryan Lance

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was solely a budding oilman when he first set foot in Alaska. Practically 4 many years later, his firm reigns supreme over the U.S. Arctic.

At a time when buyers profess gloomy views of long-term demand for oil and demand fast returns from firms, Mr. Lance’s contrarian technique units him aside. The CEO says {that a} dearth of investments in oil and fuel implies that the world will want new provides of crude; consequently, he’s pursuing a method to drill wells that can yield oil for many years.

That plan is underpinned by ConocoPhillips investments in Alaska, the place Mr. Lance’s profession began. He spent round 14 years there navigating the state’s power panorama, politics and, sometimes, its wildlife.

An avid hunter and fisherman, Mr. Lance embraced the native life-style. The oil boss likes to inform individuals in regards to the time he was mountain climbing by the Kenai Mountains and crossed paths with a bear, that chased him up a tree, stated

Don Wallette,

a former chief monetary officer at ConocoPhillips.

Individuals who know Mr. Lance stated his expertise in Alaska formed his advocacy for the roughly $7 billion Willow venture within the state’s North Slope, which Mr. Biden greenlighted earlier in March. Willow cements ConocoPhillips’s standing as the biggest producer within the state and offers it license to maintain increasing, analysts stated.

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Environmentalists argue Arctic drilling must be halted instantly to keep away from a local weather disaster. The venture is predicted to yield 180,000 oil barrels a day at its peak.

A ConocoPhillips exploratory drilling camp on the website of the Willow oil venture in northern Alaska, in 2019.



Picture:

ConocoPhillips/Related Press

“These are larger-sized initiatives as a result of we all know the oil goes to be wanted for many years,” Mr. Lance stated on the CERAWeek by S&P International power convention earlier this month.

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Whereas opponents

Exxon Mobil Corp.

and

Chevron Corp.

seize extra headlines, Houston-based ConocoPhillips beneath Mr. Lance has quietly change into one of many largest Western oil producers. The corporate’s market capitalization, hovering round $118 billion, now exceeds that of British big

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BP

PLC, which was one of many largest producers in Alaska earlier than promoting all of its property there in 2019.

Alaska has been a dependable money supplier for ConocoPhillips. Between 2012 and 2022, the corporate’s enterprise there prospered to characterize on common round 1 / 4 of its annual revenue, in response to a Wall Road Journal evaluation of regulatory filings.

Mr. Lance, a Montana native, toiled away on drilling rigs in Wyoming to place himself by faculty and earn a petroleum engineering diploma from Montana Tech College. When he failed to enroll in a job interview with oil firm Atlantic Richfield Co., he introduced a six-pack of Budweiser to the convention room the place the recruiter was tenting. He received an interview and nailed it, stated

Jerry Schuyler,

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the previous recruiter and a confidant to Mr. Lance.

Mr. Lance in 1984 joined Arco’s Alaska unit—an organization whose property wound up in ConocoPhillips’ portfolio. It was a strategic transfer: Alaska on the time offered roughly a fourth of U.S. crude manufacturing.

Mr. Lance quickly was promoted from a job dealing with oil discipline knowledge to at least one overseeing drill websites—a job that required interacting with regulatory businesses and legislators within the state, stated

Dan Pickering,

chief funding officer at Houston-based Pickering Power Companions and a former Arco engineer in Alaska.

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“Ryan received expertise being not only a champion of technical initiatives, however understanding how the system labored,” he stated.

Mr. Lance ultimately grew to become vp of Arco’s operations within the Western North Slope, a part of a area that produces nearly all of Alaska’s oil. Phillips Petroleum Co.’s acquisition of Arco Alaska in 2000 catapulted him up the company ladder. After Phillips merged with Conoco Inc., he was promoted to worldwide roles, earlier than being appointed CEO of the mixed entity in 2012.

Below Mr. Lance, the corporate shrank its international presence, partly to provide precedence to property producing the best returns and increase returns to buyers. However whilst the corporate shed property from Algeria to Kazakhstan, it stored nabbing leases and buying opponents’ wells in Alaska.

Main oil firms together with BP and Shell PLC as soon as additionally coveted Alaska’s oil riches. However regulatory challenges, mixed with fruitless exploration efforts and the emergence of shale gushers from North Dakota to Texas refocused some drillers’ consideration away from the distant, capital-intensive Arctic, leaving ConocoPhillips ample room for brand spanking new enterprise.

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ConocoPhillips is the dominant oil firm in Anchorage, Alaska, following the departure of rivals.



Picture:

Reuters

“What we’re seeing in Alaska is a departure of the larger firms,” stated Republican Sen.

Lisa Murkowski

of Alaska, who has supported Willow. “Conoco has made a dedication, they usually’re sticking by it.”

Willow has earned ConocoPhillips scorn from environmental teams, who say the venture will emit climate-warming greenhouse gases for many years. However it has discovered help amongst some Alaska Natives’ associations, native politicians and the Alaska delegation in Congress. Proponents say that Willow might generate native, state and federal income of as much as $17 billion and create greater than 2,000 development jobs and 300 everlasting jobs.

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The venture virtually didn’t occur. In 2017, ConocoPhillips stated it had discovered a trove of oil in Alaska’s Nationwide Petroleum Reserve, a 23-million-acre space managed by the U.S. Inside Division. However a federal choose in 2021 threw out the Bureau of Land Administration’s approval of the proposed improvement, dubbed Willow, saying the company had failed to completely account for the venture’s environmental affect, and that the company wanted to conduct extra research.

SHARE YOUR THOUGHTS

Ought to drilling in Alaska’s Nationwide Petroleum Reserve be allowed? Be a part of the dialog under.

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Among the many choices explored by the bureau to scale back Willow’s footprint was that its scale be introduced down from 5 drill websites—the corporate’s preliminary plan—to a few. ConocoPhillips made it clear that something lower than three pads wouldn’t make the venture viable. Mr. Lance made certain the corporate didn’t bend on that time, individuals near him stated.

Final yr, as Mr. Lance made the case for Willow in incomes calls, ConocoPhillips amped up its lobbying spending.

The corporate shelled out practically $8.7 million, in response to OpenSecrets, a nonpartisan group that tracks political spending—greater than what Exxon or Chevron disbursed that yr. It listed continued advocacy for Willow amongst different points it was lobbying for, in response to quarterly lobbying stories.

A spokesman for ConocoPhillips stated it had elevated its engagement with key stakeholders on a spread of power points and different laws, together with Willow. 

In the end, Mr. Biden gave a down-to-the-wire approval of Willow over fierce objections from environmentalists and plenty of Democrats who needed the venture scuttled. The corporate was cleared to construct three pads.

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Environmental teams earlier this month sued the Biden administration to cease the venture. ConocoPhillips has began constructing ice roads however agreed to pause some improvement till a federal choose has reviewed environmentalists’ request to halt development actions pending litigation, in response to courtroom filings.

ConocoPhillips has stated it doesn’t count on Willow to start out churning out oil till round 2029. Those that know Mr. Lance say he believes his technique will prevail.

“He believes within the lengthy haul, the appropriate reply will normally float to the floor,” stated Mr. Schuyler, the previous Arco recruiter.

Write to Benoît Morenne at benoit.morenne@wsj.com

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Alaska

Alaska legislators, citing some citizen complaints, investigate management of 2024 election

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Alaska legislators, citing some citizen complaints, investigate management of 2024 election


Alaska’s elections chief defended her division’s management of the 2024 elections at a legislative hearing last week, but she acknowledged that logistical challenges created problems for some voters.

Carol Beecher, director of the Division of Elections, reviewed the operations during a more than two-hour hearing of the state House Judiciary Committee. She fielded questions from the committee’s chair, Rep. Sarah Vance, R-Homer, and other Republicans about election security and possible fraud, and she answered questions from Democrats about problems that led to rural precincts being unstaffed or understaffed, which presented obstacles to voters there.

Vance said she did not intend to cast blame, but that she hoped the hearing would lead to more public trust in the election process.

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“The purpose of this meeting is to discuss the process of the 2024 election, not the results. It’s not about the outcomes, but about making sure that every legal vote gets counted in a timely manner, and asking what improvements can be made in the process,” she said.

“A lot of the public has reached out to me and expressed a lot of frustration and concern around a lot of the activities of this election,” she said. “So this is an opportunity for us to have a conversation with the director of elections and the public so that we can gain an understanding about what happened and how the actions that we can take in the future.”

Beecher responded to Republican committee members’ queries about safeguards against fraud and the possibility that non-citizens are casting votes.

“We often get asked about U.S. citizenship as regards elections, and we are only required and only allowed to have the person certify and affirm on the forms that they are a citizen, and that is sufficient,” Beecher said. “We do not do investigations into them based on citizenship questions. If there was a question about citizenship that was brought to our attention, we may defer that to the department of law.”

Residents are eligible to vote if they are a citizen of the United States, age 18 years or older and have been registered in the state and their applicable House district for at least 30 days prior to the election. Eligible Alaskans are automatically registered to vote when they obtain their state driver’s licenses or apply for Alaska Permanent Fund dividends.

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Beecher said the division investigated and found no evidence of non-U.S. citizens being registered through the PFD system. “This is not happening where somebody is marking that they are not a citizen and are receiving a voter registration card,” she said.

Vance said many Alaskans remain worried, nonetheless, about non-citizens casting votes. “I think people are wanting a stronger position regarding the ability to verify citizenship for the people wanting to vote,” she said. “So can the division take action to verify citizenship on its own, or does it need statutory authority?” Beecher confirmed that the division does not have the authority to verify citizenship.

Tom Flynn, a state attorney, advised caution in response to Vance’s suggestion.

“We should be also wary of the limits that the National Voter Registration Act and its interpretation can place on citizenship checks and the federal voting form requirements,” said Flynn, who is the state’s chief assistant attorney general. The National Registration Act of 1993 prohibits states from confirming citizenship status.

In response to questions about opportunities for fraud through mail-in absentee voting, Beecher said the state relies on the information voters provide. “If an individual applied for an absentee ballot, and all of the information was in our voter registration system that you were eligible to vote, etc, and you had a legitimate address to send it to, then you would be mailed an absentee ballot,” she said.

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Each ballot is checked for appropriate voter identification information. Ballots are coded by district, and then given another review by another group of election workers, including an observer, she said. “The observer has the opportunity to challenge that ballot. If they challenge a ballot, a challenge is sent to me, and then I review the information based on what the challenge is, and I’ll often confer with [the Department of] Law,” she said.

Alaska has notably low voter turnout, but also a steadily changing voter roll as it’s one of the most transient populations in the nation, with voters moving in and out of state.

Alaska has a mix of districts with ballot scanners and hand count precincts, usually in rural areas with a small number of voters, as well as voting tablets for those with disabilities. Ballot scanners record ballot information, which is encrypted before being sent to a central server in Juneau. All voting machines are tested ahead of time, Beecher said. For hand count precincts, ballots are tallied up and poll workers call in the results to the division’s regional offices, she said.

“We had about 15 people on phones to take the calls that evening, and the phone starts ringing immediately, and all of the different precincts are calling in,” she said. Division workers also helped poll workers properly read rank choice ballots, she said. “And so there’s a lot of discussion that can happen on that phone call. It’s not necessarily just as simple as going through the list.”

The division of elections has 35 permanent staff who are sworn to remain politically impartial and who work in five district offices to administer the elections in the 60 legislative districts.

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Beecher said the division reviews its processes, systems of communications, challenges and improvements needed in each election cycle. “The division has lists and lists and checklists and handbooks, and is very good and diligent about making sure that process and procedures are lined out and checked,” she said.

Rural Alaska problems

Administering elections in rural communities is an ongoing challenge in Alaska. Beecher answered questions on several incidents, including voters in Southwest communities of Dillingham, King Salmon and Aniak receiving the wrong ballots that had to be corrected. In August, a mail bag containing a voted ballot and primary election materials from the village of Old Harbor on Kodiak Island was found on the side of the road, near the Ted Stevens Anchorage International Airport.

“We don’t have control over the materials when they are in the custody of the post office, in this case, it was one of their subcontractor carriers,” she said. “We weren’t told [what happened] specifically, but I know that the post office has processes when mail is lost like that, and they do deploy their processes with that contractor.”

Vance said the incident was serious.

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“I hope the state is pursuing further accountability, because this is a matter of public trust that something so important was dropped out of the truck along the roadside,” she said. “It looks extremely negligent.”

Beecher said training and retaining poll workers is essential for running elections smoothly. “So one of the challenges that we run into, and frankly, it’s not just in our rural areas, the turnover of poll workers is a reality,” Beecher said. The division conducts in-person poll worker trainings, and provides support with video tutorials and by phone.

This year, in the western Alaska community of Wales, the designated poll worker was not available and so the division of elections located a school teacher late on election day to administer the polls. “It was not ideal,” she said, but they had trained back up poll workers ready to deploy this year.

“We had trained people who were situated at all the various hubs, so Anchorage, Fairbanks, Utgiagvik, Nome, and they were trained and ready to be deployed to some of these polls should we run into a situation where we didn’t have poll workers on the day,” she said. “So we weren’t able to get them to Wales only because of the weather. They were there at the airport ready to head out there. But we did send them to Egegik, and there were polls there.”

Responding to Rep. Cliff Groh, D-Anchorage, Beecher said one thing she would have done better would have been to ensure that the official election pamphlet was more carefully reviewed and checked for errors.

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A notable error in the published pamphlet was the misidentification of Republican House candidate Mia Costello as a Democrat.

“Secondly, I would have made sure that our advertisement that had a name in it would not have used names,” she said, referring to a rank choice voting education materials giving examples with fake elector names, including “Odem Harris” which Republicans pointed out filled in a first choice vote for “Harris,” also the Democratic presidential candidate.

“And thirdly, I wish that I had done a better job of anticipating the level of communication that was expected and needed,” Beecher said.

In response to a question about the ballot measure seeking to overturn the ranked-choice system, Beecher said there was no evidence of fraud. The measure failed by just 743 votes.

“We did not see something that would indicate that anything untoward happened with ballots. That simply was not something that was seen in the results,” she said.

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Beecher suggested some improvements for legislators to consider this next term. Those included an expansion of mail-only precincts, paid postage for ballots and a requirement that mail-in ballots be sent earlier rather than postmarked by Election Day. “On ballot counting, doing it sooner,” she said. “So potentially changing the time frames of receiving absentee ballots to having everything have to be received by Election Day.” The latter would be a big change for Alaska, which has long counted mail-in ballots as long as they are postmarked by Election Day.

Some changes may be warranted, she said.

“We are not perfect. We know that,” she said. “And we really look to doing better, and [are] wanting it to be better, and that people are confident that it is managed in a way that they have trust in the integrity of the process.”

The next Legislative session starts on Jan. 21. Under the new bipartisan majority, Rep. Andrew Gray, D-Anchorage, is set to chair the committee in the coming session.

Originally published by the Alaska Beacon, an independent, nonpartisan news organization that covers Alaska state government.

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Alaska Jewish community prepares to celebrate start of Hanukkah

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Alaska Jewish community prepares to celebrate start of Hanukkah


ANCHORAGE, Alaska (KTUU) – Rabbi Josef Greenberg and Esty Greenberg of Alaska Jewish Campus, joined Alaska’s News Source to explain more about Hanukkah and how Anchorage can celebrate.

They will be hosting Chanukah, The Festival of Lights for “Cirque De Hanukkah,” on Sunday, Dec. 29, at 5 p.m., at the Egan Center.

See a spelling or grammar error? Report it to web@ktuu.com

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A Christmas & Hannukah mix of winter weather

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A Christmas & Hannukah mix of winter weather


ANCHORAGE, Alaska (KTUU) – A variety of winter weather will move through Alaska as we go through Christmas Day and the first night of Hannukah.

A high wind warning started Christmas Eve for Ketchikan, Sitka, and surrounding locations for southeast winds 30-40, gusting to 60 miles per hour. Warnings for the combination of strong winds and snow go to the west coast, western Brooks Range, and Bering Strait.

Anchorage is seeing a low-snow Christmas. December usually sees 18 inches of snow throughout the month. December 2024 has only garnered a paltry 1.5 inches. Snow depth in the city is 7 inches, even though we have seen over 28 inches for the season. A rain-snow mix is likely to hit Prince William Sound, mostly in the form of rain.

A cool-down will start in the interior tomorrow, and that colder air will slip southward. By Friday, the southcentral region will see the chances of snow increase as the temperatures decrease.

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The hot spot for Alaska on Christmas Eve was Sitka with 48 degrees. The coldest spot was Atqasuk with 23 degrees below zero.

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