Page 9 - NorthAmOil Week 48 2022
P. 9
NorthAmOil POLICY NorthAmOil
Cook Inlet acreage auction
to be held this month
ALASKA THE administration of US President Joe Biden whales were not included, said the US Bureau
is planning to offer 958,000 acres (3,877 square of Ocean Energy Management, (BOEM), part
km) for commercial oil and gas activity in Alas- of the DoI.
ka’s Cook Inlet in an auction on December 30. Bids must be received by December 29.
While 193 blocks will be offered in the auction, When the Biden administration previously
though, it is unclear if drilling will ultimately take cancelled the sale, in May, it said there was not
place. enough interest. The administration has had a
The sale had previously been cancelled by the tense and complicated relationship with the US
Biden administration but was mandated again oil and gas industry, but is now seeking more
in the Inflation Reduction Act in a compromise drilling in an effort to bolster energy independ-
by pro-fossil fuel Senator for West Virginia Joe ence and achieve lower oil and gas prices.
Manchin in exchange for his support. Recently, Alaska’s government reaffirmed its
The act was signed into law in mid-August. plan to auction off state drilling rights spanning
The US Department of the Interior (DoI) esti- 2.8mn acres (11,331 square km) and 721tracts.
mates that the Cook Inlet acreage could produce Bidding opens on December 12.
almost 200 million barrels of crude and 300bn “We are offering this special State Cook Inlet
cubic feet (8.5bn cubic metres) of natural gas lease sale at the end of the year to coincide with
over the 10-year lifetime of the leases. the federal sale for the benefit of potential bid-
The acreage, in federal waters in south-cen- ders,” said the Alaska Department of Natural
tral Alaska, stretches from Kalgin Island in the Resources’ (DNR) Deputy Commissioner, John
north to Augustine Island in the south. Areas Crowther. The state acreage that will be offered
that are especially critical for endangered beluga surrounds the federal acreage.
PROJECTS & COMPANIES
Suncor to keep Petro-Canada retail business
CANADA CANADA’S Suncor Energy has said it will retain Investment Management publicly expressed
its Petro-Canada retail business. The gasoline frustration with Petro-Canada’s performance
station chain, with 1,600 locations, sells an esti- with regard to the oil company’s shareholder
mated 18% of Canada’s retail fuel. value, as well as other aspects of Suncor’s per-
This unanimous board decision came after formance. In July, Suncor initiated a four-month
a strategic review found that Suncor was likely review of its business and replaced its CEO.
to fail to obtain the price it wanted for the retail Elliott has a 3.4% stake in Suncor, which Can-
chain. ada’s second-largest oil producer.
In an announcement on November 29, Sun- During the strategic review, Suncor said
cor said it had decided to retain and continue to it had surveyed 17 different potential buyers
improve and optimise Petro-Canada, increasing for Petro-Canada, and found that only a third
its contribution to earnings and strengthening its were interested. None said they would pay the
own integrated refining and marketing business. CAD3.8-5.7bn ($2.8-4.3bn) the oil company had
“Petro-Canada is a unique, differentiated, said the chain was worth.
and strategic asset due to its strong national net- Suncor also released its 2023 capital budget
work and best in market consumer brand and on November 29, setting out plans to raise cap-
loyalty programme,” said Suncor’s board chair, ital expenditures – in part because of inflation
Mike Wilson. – while production remains nearly flat.
Suncor said it would make the chain more Suncor said that capex will have to rise as it
profitable by expanding partnerships with non- starts a three-year plan to improve performance
fuel businesses, such as convenience stores and at the Fort Hills oil sands facility.
fast-food outlets. The Fort Hills mine in northern Alberta has
“We do not see the retail segment as being struggled with performance challenges includ-
an issue operationally and believe the asset pro- ing operational problems, delays and cost over-
vides outsized strategic value within the existing runs. Majority owner Suncor has previously
organisational structure,” said a National Bank reported that it anticipates 5% lower gross pro-
analyst, Travis Wood, in a note. duction as well as higher operating costs until
In April, activist US investor Elliott 2025 because of the challenges at Fort Hills.
Week 48 01•December•2022 www. NEWSBASE .com P9
