Wednesday, January 30, 2008

DOE Publishes Alaska Oil & Gas Report

The US Department of Energy Office of Fossil Energy has published a lengthy report on the future of oil and gas in the Alaskan Arctic.

The report is long and paints an optimistic picture Alaskan Oil and Gas production out to 2050.

These conclusions are based on some important assumptions. Most important: "state of Alaska and federal fiscal policies remain stable and supportive of the huge investments that will be required. The future prospects become progressively less promising as these assumptions are removed."

The report goes on to point out: "The construction of a 4.5 billion cubic feet per day Alaska gas pipeline by 2015 and the ability to sell gas from the Prudhoe Bay and Point Thomson fields will nearly double the revenue to the stakeholders (state of Alaska, federal government, and industry)".

You hear that "DOUBLE" the revenue to stakeholders. It's also a call to action to develop Point Thomson.

Subtle wording and strategic timing. It's pretty clear the federal view is - Get it done or face a much less profitable future.

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