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Hilcorp Alaska is purchasing Eni’s Alaska fields, expects to increase production

Hilcorp Alaska is purchasing Eni’s Alaska ownership interests in the Oooguruk and Nikaitchuq fields on the North Slope, Must Read Alaska has learned.

Eni is an Italian company. Its Nikaitchuq field, about eight miles northeast of Oooguruk, has been in production since 2011 and has yielded 16,000 barrels per day in 2023.

The Oooguruk field, with production facilities located on an artificial gravel island, has been in production since 2008 and produced roughly 6,600 barrels per day in 2023.

Hilcorp Alaska has operated in Alaska for more than 12 years and currently operates interests in the Cook Inlet Basin and on the North Slope. In 2020, following the acquisition of BP’s Alaska assets, Hilcorp became the largest oil a gas operator in Alaska and now employs more than 1,500 full-time employees.

Since entering the North Slope, Hilcorp has made substantial investments and introduced new technologies to the Basin, particularly at Milne Point.

Since taking over as operator in 2015, Hilcorp has invested nearly $1.5 billion dollars at Milne Point, focusing on expanding development of the Schrader Bluff, facility upgrades, and optimization.

Working with the University of Alaska Fairbanks, Hilcorp has successfully proven and ways to increase Milne Point production.

Milne Point production has nearly tripled, growing from roughly 18,400 barrels per day in 2014 to approximately 50,000 barrels per day today.

Hilcorp expects Milne Point production to near 60,000 barrels per day in the next two to three years.

Supreme Court rules in favor of government’s ‘Ministry of Truth’ censorship of social media accounts

On a vote of 6-3, the U.S. Supreme Court ruled today that the plaintiffs who brought the case didn’t have standing in a lawsuit over the Biden Administration’s efforts to censor Americans’ viewpoints on social media.

The case and the injunction that went with it were thrown out and remanded in Murthy v. Missouri.

The state attorneys general from Missouri and Louisiana had accused the Biden Administration of collusion with Facebook and censorship-via-surrogate in what the Biden lawyers said was simply an effort to combat misinformation. The Biden Administration pressured companies to not allow dissenting opinions about Covid-19, the ridiculousness of government face mask policies, and even the Hunter Biden laptop story.

Alaska’s attorney general had filed an amicus brief supporting the plaintiffs. It said, in part, “The district court and the Fifth Circuit found that federal officials engaged in a years-long campaign to influence the content-moderation decisions of social
media platforms by applying ‘unrelenting pressure’ to those platforms to change content-moderation policies to allow easier suppression of disfavored speech.”

The actual allegation of government censorship may indeed hold water in a court case, but the justices ruled that two states and five social media users do not have the legal standing to sue because they could not show harm. They were simply not the proper litigants.

Doctors who dissented from the government position on Covid were represented by the New Civil Liberties Alliance, which wrote that the high court has “green-lighted the government’s unprecedented censorship regime.”

“Today’s decision Murthy v. Missouri enables the censorship industrial complex and will have grave consequences for Americans’ freedom for years to come. As a practical matter, for the vast majority of plaintiffs, including @AaronKheriatyMD, @DrJBhattacharya, @MartinKulldorff, and @HealthFreedomLA, the Court’s decision effectively erases the First Amendment in the age of technology,” the Alliance wrote.

The decision means that, for now, the government’s requests to tech companies to remove social media posts that the Biden Administration may continue.

“The plaintiffs, without any concrete link between their injuries and the defendants’ conduct, ask us to conduct a review of the years-long communications between dozens of federal officials, across different agencies, with different social-media platforms, about different topics,” Justice Amy Coney Barrett wrote in the majority opinion. “This court’s standing doctrine prevents us from ‘exercis[ing such] general legal oversight’ of the other branches of government.”

Barrett wrote, “Neither the individual nor the state plaintiffs have established Article III standing to seek an injunction against any defendant.” Thus, “We therefore reverse the judgment of the Fifth Circuit and remand the case for further proceedings consistent with this opinion.”

In addition to doctors, the plaintiffs included a conservative political blog, “The Gateway Pundit,” which reacted to the ruling by stating that the court has ruled “the Biden Administration’s policy of deleting, suppressing, and deplatforming specific people, topics, and ideas is immune from suit, leaving no one able to challenge it in court.”

A Louisiana judge had earlier ruled in favor of The Gateway Pundit and accused federal agencies of taking on the role of “an Orwellian ‘Ministry of Truth.’” His decision was upheld in part by the U.S. Court of Appeals for the Fifth Circuit, which said the Biden Administration had strong-armed platforms into taking down content. The court issued an injunction that had stopped the government from such communications.

The Supreme Court has now ruled that “the fifth circuit was wrong” in its conclusions. The court found that the plaintiffs failed to demonstrate that they faced substantial risk of harm from the government.

Conservative Justices Samuel Alito, Clarence Thomas, and Neil Gorsuch dissented with the majority opinion. Alito wrote the dissenting opinion, saying this is “one of the most important free speech cases to reach this court in years,” and that the Biden Administration’s arm-twisting was “blatantly unconstitutional.”

If two states and a handful of doctors don’t have standing, the question remains, who would?

“The Supreme Court is making it procedurally impossible for a citizen or a state to challenge the government’s ability to silence your digital speech. The practical consequence of this decision is to re-open the floodgates of social media censorship and speech suppression,” the conservative publication wrote.

“In sum, the court rules that the two different types of parties, states, and individuals harmed by these government policies, do not have ‘standing’ to sue. This case procedurally related to the request for a preliminary injunction for the government to stop the censorship regime while the case was going on,” The Gateway Pundit wrote.

Video: Young Anchorage man tells Assembly why he’s moving. Assembly Chairman Constant then calls him dishonest and scolds the audience

You’ve heard that young people are leaving Anchorage. But why? Prices? Opportunity? Or liberal policies destroying the city?

Jordan Harary, a young technology professional and resident of Anchorage, stood at the podium in dress shirt, tie and slacks, and with poise gave the Anchorage Assembly a three-minute lesson on Tuesday about why Anchorage is dying and why he is leaving.

He told them he moved to Anchorage in 2008 when he was 20 years old to get away from the hellscape Los Angeles, and that he had unknowingly brought his liberal idealism with him. Anchorage has broken that idealism and liberal views, and he now realizes that the progressive policies that ruined Los Angeles are ruining his hometown of Anchorage as well.

At the end of his three minutes, Assembly Chairman Chris Constant called him dishonest, and then told the audience at the meeting that their clapping was celebrating dishonesty. He insinuated that if he had known what Harary had planned to testify about, he may not have allowed it. Under new rules of the Assembly, the three minutes of public testimony at the beginning of meetings has to be essentially submitted in advance and approved by the chairman.

No member on the Assembly dais interrupted to call a point of order about the chair disparaging a member of the public.

Watch Harary’s remarks and stick around to the end of the three minutes to see how Constant treats him after Harary’s prepared remarks, in the video clip here:

Harary ran for House in 2022 against Democrat Andrew Gray. Gray won the seat to represent East Anchorage in the Alaska Legislature.

Carbon credits auction prices are dramatically down

By BRETT DAVIS | THE CENTER SQUARE

A choice available to Washington state voters on the November ballot could already be saving them money at the pump. 

This November, voters in Washington state will have the final say on Initiative 2117, which would repeal the Climate Commitment Act and prohibit state agencies from implementing a cap-and-trade program.

However, there is some evidence that I-2117 may already be impacting the price of carbon credits, given a major decrease in the price of carbon credits during this year’s first two auctions as compared to last year’s auctions.

Under the Climate Commitment Act of 2021 – which went into effect at the beginning of 2023 – emitters are required to obtain “emissions allowances” equal to their covered greenhouse gas emissions at quarterly auctions hosted by the state Department of Ecology. One carbon credit permits the emission of one ton of carbon dioxide or the equivalent of other greenhouse gases. Carbon credits are also known as carbon offsets.

In 2023, settlement prices for a carbon credit ranged from a low of $48.50 to a high of $63.03.

Some critics claimed the carbon auctions increased the cost of a gallon of gas by up to 50 cents last year.

In 2024, the first-quarter auction price was $25.76 per carbon credit allowance, which raised approximately $135 million in state proceeds. The second-quarter auction price was $29.92 per allowance, raising roughly $157 million in state proceeds.

The Center Square reached out to the state Department of Ecology for comment on this year’s price drop and I-2117.

“We do not have insight into participants’ bidding strategies, and we do not speculate,” said Caroline Halter, communications manager with the Department of Ecology’s Climate Reduction Program, in an email. “What we are seeing is that businesses continue to actively work to meet their compliance obligations under the Climate Commitment Act.”

She hinted that bidders are becoming more savvy and that this is part of the market stabilization process.

“Generally, allowance prices fluctuate as a result of market participation and demand,” Halter explained. “And in any market, prices respond to uncertainty. Price fluctuations are also especially common in new markets.”

The Department of Ecology is looking forward, she noted.

“Our focus is and will continue to be ensuring that each auction is conducted fairly and securely according to Washington’s regulations,” Halter said. “We’re also continuing to pursue a linkage agreement with the California-Québec market to improve price stability and help ensure the long-term success of the program.”

An October 2023 report by the Department of Ecology found that a larger, linked market would likely result in more predictability in allowance prices and incentivize businesses to increase investments to curb their greenhouse gas emissions.

Josiah Neeley, who advises the energy team at the R Street Institute think tank, said he thought “the lower prices are due to the upcoming referendum that would repeal the CCA.”

He said bidders are less inclined to spend money on a program that could be gone by the end of the year.

“Because the allowances for this year’s emissions are not due until next fall, a lot of companies did not bid [at] the last two auctions on the theory that if the referendum passes, any money spent on allowances would be a waste,” Neeley emailed The Center Square.

Some purchases, he said, could have been motivated by the possibility voters would reject I-2117.

“Some entities have bought allowances at or near the minimum price either as a hedge or as a bet that if the referendum fails the price of the allowances on the secondary market will skyrocket,” Neeley said.

The next carbon auction is scheduled for Sept. 4.

The general election is Nov. 5.

Matt Cole: Five questions Congress should have asked the Climate Action 100+, aka the climate cartel

By MATT COLE

My old employer CalPERS just suffered a humiliating defeat in its vote against Exxon’s board of directors.

Its losing streak continued last week when the House Judiciary Committee grilled it over the Climate Action 100+ “climate cartel,” which helps pension funds like CalPERS coordinate with asset managers and non-profits to kill fossil fuels.

CalPERS is the group’s brains and brawn, founding it and using its $500 billion weight to pressure companies like Exxon to fall in line. Here are five questions I wish Congress had asked it.

  1. What is the investment case that cutting fossil fuel production will increase Exxon shareholders’ returns?

Interim CIO Dan Bienvenue began by asserting “Climate change is an existential risk” and answered questions about CalPERS’ anti-fossil fuel actions by repeating “Climate change is real.” Clearly, CalPERS wants to portray all opposition to its activism as disagreement with science itself. But there’s a long leap between the claim that climate change is real and the conclusion that producing less oil will make an oil company more money.

Scientists don’t say climate change is an existential risk: as one review of the research puts it, “a century of climate change is about as bad as losing a year of economic growth.” Ending fossil fuel use would cost an energy-starved world far more, especially as AI guzzles electricity. The argument that Exxon must destroy its business to save it is political, not financial. Congress could expose that if it pressed the activists for hard evidence instead of ceding them the scientific high ground.

  1. Would CalPERS ever use its ownership in oil companies to artificially boost its green energy investments?

If cutting oil and gas production doesn’t make the Exxons and Chevrons of the world more money, who does it benefit? The green energy industry CalPERS recently pledged to invest $100 billion in.

In early 2023, California released SB 252, which required CalPERS to divest from fossil fuels. The pension opposed it, rightly noting that divesting over social goals would hurt its returns but affirming its “strong commitment to the reduction of GHG emissions.” Half a year later, it made its gigantic climate solutions promise.

The Judiciary Committee focused on Climate Action 100+’s war on fossil fuels, but that goes hand-in-hand with its attempt to artificially drive demand to wind and solar energy, which raises its own issues about fiduciary duty and anticompetitive behavior. I asked CalPERS’ PR chief about this conflict of interest in a public exchange—no answer. Maybe Congress would have better luck.

  1. Where’s that $100 billion in new green investments coming from?

The math is simple: CalPERS has $500 billion, which is already invested in a variety of assets it presumably believes will maximize risk-adjusted returns. It doesn’t have a spare $100 billion for green investments lying around. Asset allocation is a zero-sum game: if it puts 20% of its portfolio into climate solutions, it has to take it from somewhere else. Where, and at what cost? If divesting from an industry hurts portfolio returns, as CalPERS learned when it missed out on almost $4 billion by divesting from tobacco, shifting massive assets from some classes into one politically favored one amounts to the same thing.

  1. If CalPERS’ DEI practices are about ensuring diversity of perspective, why does it only measure diversity of race and gender? Does it believe different races think differently?

Bienvenue repeatedly refused to answer direct questions about whether CalPERS ever votes for or against board directors based on their skin color. Doing so would be, well, obviously racist. This should’ve been a softball.

The Committee can press the question by zeroing in on the fact that the “key highlights” of CalPERS’ DEI investments report only highlights diversity related to race, gender, and “historically underrepresented groups.” It doesn’t identify a single example of voting or engaging to improve diversity of “skill sets” or “competencies,” unless you define those through the lens of race or gender.

Does CalPERS govern its portfolio companies on the theory that men are from Mars and women are from Venus? Does it assume that white people and black people have different skill sets and competencies? Its beneficiaries deserve to know.

  1. If all this ESG investing is about making money, why are your returns so low?

Those beneficiaries, current and would-be retirees, are the ones who ultimately pay for all these wasteful experiments in ESG investing. CalPERS has made a habit of underperformance: it reported a 5.8% return last year, in-line with its 5-year average. That falls far short of the roughly 7% it needs to hit to meet its future obligations—on its current course, it’s on-track to meet only 72% of its retirees’ funding needs.

That chasm was the reality I struggled to defy every day as a CalPERS portfolio manager. The absence of any urgency to close it was why I had to leave to defend our capitalist system elsewhere. ESG investing promises nebulous profits in some far-off future, but my friends and family whose retirements rely on CalPERS need it to perform better today instead of doubling down on its money-losing ways.

Matt Cole is CEO at Strive Asset Management. This column originally appeared in Real Clear Energy and is published here with the permission of the author.

Primary colors: Rep. Lauren Boebert beats back five in Colorado; Rep. Jamaal Bowman bounced in NYC

U.S. Rep. Lauren Boebert of Colorado’s Fourth Congressional District won her primary on Tuesday, fending off challenges from five other competitors. She won 44.3% of the vote when the race was called by AP at 9:22 pm. Her second closest competitor, Deborah Flora, got 15.3%.

Boebert is a member of the Freedom Caucus in the House, the more conservative segment of the Republican majority. She opted to not run again in the Third District after redistricting, and if she wins in November, she’ll replace former party chair and now former Rep. Ken Buck, who retired early in March.

Also part of the Colorado election on Tuesday was the temporary replacement for Buck, to fill out the remainder of his term. Former Mayor Greg Lopez of the city of Parker appears to have the edge and will serve until the new representative is chosen in November and sworn in in January.

Some Republican candidates who had the endorsement of Donald Trump didn’t fare well on Tuesday.

Republican Jeff Crank won the Republican primary for retiring Colorado Fifth District’s Rep. Doug Lamborn’s seat. Crank defeated state party Chairman Dave Williams. Williams had been endorsed by Donald Trump.

In North Carolina’s Third District, Army veteran and Republican Sheri Biggs won the primary runoff to replace retiring Rep. Jeff Duncan, a Republican.

Pastor Mark Burns, who was endorsed by President Donald Trump, lost the runoff, although he had won the first primary with 33% to Biggs’ 29%, before the Trump endorsement.

Biggs now will run against Democrat Byron Best in November, but the district is strongly conservative.

In the Utah Senate race to replace Sen. Mitt Romney, another Trump-endorsed candidate lost.

Republican Rep. John Curtis is the winner of that primary to replace retiring Romney. There were four candidates in the running for the closed Republican Primary; Riverton Mayor Trent Staggs was the one endorsed by Trump who failed to advance.

In New York, “squad member” Rep. Alexandra Ocasio-Cortez, a Democrat has won her primary, defeating a more centrist Democrat candidate. Also in New York, Democrat George Latimer won against squad member Democrat Jamaal Bowman.

Fairbanks Assembly considers Climate Action Plan that was rejected by former Assembly majority

On Thursday, the FNSB Fairbanks North Star Borough Assembly will take up the Climate Action Plan — the same plan that was rejected 9-0 by last year’s assembly. 

The plan represents a major shift in how policy is undertaken in the borough, placing the health of the ecosystem over the needs of residents, and will become the guiding principle of the policy if it is adopted. 

The document blames wildfires on climate change, rather than mismanagement of forest assets. 

The document blames the lack of fish on climate change, rather than trawler by-catch, particularly in area M. 

It places “scientific consensus,” over actual science. 

It calls for reducing carbon fuels (coal, natural gas, fossil fuels) in one of the harshest environments for humans in North America.

The plan calls for policy solutions that have nothing to do with climate change, and abrogates the power of the people in favor of activist organizations. 

It calls for hiring at least two new positions and diverts staff time to activities based on climate change. 

You can read more about the plan at this link.

 The public may testify by phone or in person.  Please call ahead of time to get your testimony number 907-459-1401  

The plan is largely work guided by Assemblywoman Mindy O’Neal, who is the executive director of the Cold Climate Research Center.  As the executive director, she directly benefits from this management plan, as her salary is directly tied to the viability of the center. O’Neal has a financial interest in this plan passing. The CCRC is mentioned several times in the document as a “community partner.”  Critics have asked why she is using her Assembly seat to further her own goals and securing her “seat at the table” once her term is up next year.

The plan claims to be a community driven plan, but critics ask, “what community?” Less than 1% of the population of the borough had an opportunity to become aware of  this plan. The plan’s promotion was largely confined to the City of Fairbanks and the University area, while two-thirds of the borough’s population lives outside the city of Fairbanks and did not have an opportunity to even be aware of the plan. Most of the borough has poor internet access and many areas like Salcha, Fox, and Two Rivers have limited access.

The plan calls for climate issues to be the governing concept in planning, platting, roads, trails, and other areas where the borough undertakes planning. Trails will be governed by the ecosystem, land use will be governed by the ecosystem, roads will be governed by the ecosystem-land use and zoning by the ecosystem, and the ramifications of this policy shift is enormous. 
Instead of government by the people and for the people, it becomes government for the environment and government cronies.  

Other examples include:

In appendix C p. 14, the Climate Action Plan calls for consolidation of Road Service Areas because it is “more efficient.” There appears to be no justification or support for demonstrating that consolidating Road Service Areas has any impact on the climate. 
The plan calls for monitoring and collecting data Green House Gases by sector. Thus, the business will be monitored as well as homeowners. This seems quite intrusive and is way beyond the powers of a second-class borough. This is simply to violate the privacy of every borough resident. 

On page 19 of Appendix C, the plan calls for “greater collaboration” with Community Based Organizations, such as the one that O’Neal runs. “Partnering” is code for “taking over the function.” In other words, environmental NGOs will take over borough functions. This means elected borough government will no longer be in charge of policy, because policy will be driven by these community-based organizations.

In Appendix C page 24, the plan calls for encouraging denser economic development to reduce vehicle emissions. Critics say that people don’t move to Alaska to live in a city like Hong Kong. They came to have their “spread” of the woods and live in a particular lifestyle. This spreads out PM 2.5 and other emissions, and stops concentrated emissions. But the Climate Action Plan states that the new development goal of the FNSB is to encourage urban density- which would presumably halt any development outside the urban core of Fairbanks and limit the amount of land a person could own. 

Under this plan (p 61), each subdivision will have only through streets; all streets will be through streets. If the recent road plan testimony was instructive, residents who live in some areas were clear that having through streets would erode the integrity of their neighborhood; several hours of testimony on this issue made it clear that neighborhood integrity is valued by residents. If all subdivisions have to have a secondary egress, whose home is going to be razed to make that policy?  

Then there is the push for electric vehicles that is in the plan. The belief is that using coal or a diesel generator to generate electricity to charge a car is more efficient than a gas engine. Most of the fire stations are not equipped to deal with a fire from an electric car.  

Strange bedfellows: Pro-ranked choice voting coalition has Democrat Party, Socialist Santa, and … Wasilla’s Rep. Jesse Sumner?

A launch for the opposition to the repeal of 2020’s Ballot Measure 2, which brought open primaries and ranked-choice voting to Alaska, is set for Fairbanks and the supporters of the “no repeal” group has many names that people in Fairbanks know well.

There’s Bryan Schroder, cousin-in-law to Sen. Lisa Murkowski. There’s the Socialist Santa from North Pole, who ran for Congress before endorsing Rep. Mary Peltola, the Democrat who won with ranked-choice voting in 2022. There’s Grace Jang, the former communication director for former Gov. Bill Walker. There’s marketing guy Elias Rojas, who serves as the LGBTQ+ caucus chair for the Alaska Democrats’ delegation to the Democratic National Convention. Also on the list is liberal Republican Linda Hutchings of Soldotna and Democrat Native leader Ana Hoffman. Native leaders Liz Medicine Crow of Anchorage Barbara ‘Wáahlaal Gidaag Blake from Juneau is one of the members of the coalition.

Back to help ranked choice voting stay in place is former Sen. Lesil McGuire, who is an Anchorage Republican who now supports Democrats. There’s Scott Crass, extreme leftist and Fairbanks North Star Borough Assemblyman who works at the University of Alaska Fairbanks.

Former Sen. Lesil McGuire appears in an ad supporting Democrat Andrew Gray.

The Alaska Democratic Party has also been sending fundraising pitches to Alaskans, saying that the party is going to work hard to preserve ranked-choice voting.

One of the supporters, however, is clearly not like the others: Wasilla Republican Rep. Jesse Sumner, who has signed on to protect ranked-choice voting. Sumner represents one of the reddest districts in the state, an area that is almost certain to vote in favor of repealing the open-primary, ranked-choice general scheme.

It’s a bit of ballot confusion: This year’s Ballot Measure 2 is to partially undo 2020’s Ballot Measure 2. So while in 2020 people like North Pole Socialist Santa and Lesil McGuire were in favor of Ballot Measure 2, this time around they are against it, since it would repeal the novel voting combination method not used anywhere else in the country.

Politics makes strange bedfellows. The “No on 2” group’s launch is on Thursday, June 27 from 12-1 p.m. on Zoom, and the Anchorage campaign launch will be July 2 from 5:30-7 p.m. at 49th State Brewing Co.

On Tuesday, June 25, an Anchorage event to repeal ranked choice voting is taking place in Anchorage:

LaFrance has already moved into City Hall and fired at least 13 people as she prepares to take over

Anchorage Mayor-elect Suzanne LaFrance has taken over space on the first floor of Anchorage City Hall. She has some kind of an agreement with the Anchorage Assembly, although it’s unclear what the agreement is. She won’t be sworn in as mayor until July 1, but has already set up shop in anticipation of moving to the mayor’s offices then. Normally, the mayor’s transition office is in the successful candidate’s campaign office in the weeks leading up to the transition of power. But for the past two weeks, LaFrance has been working out of City Hall.

Also, Must Read Alaska has learned that LaFrance has fired 13 people in the mayor’s office as she begins to hand walking papers to those who were hired by Dave Bronson, the outgoing mayor of Anchorage. Among them are people in the purchasing, administrative, communications, and other departments and divisions of the city, mostly those closest to the mayor.

That’s not unexpected, because every mayor brings in his or her own team.

Today, LaFrance announced she is firing Police Chief Bianca Cross and replacing her with Sean Case, who is deputy police chief for Anchorage.

LaFrance announced last week that her swearing in will be at Town Square Park from noon to 1 p.m. on July 1.