Saturday, September 19, 2009

In-State Gas Line: Facts and Figures

Here's a link to a Petroleum News story by Kristen Nelson, It gives cost details for various routes and a unit cost of pipeline of $5.2 Million per mile (24" pipe).

The study did not consider the upstream gas processing plant or the cost of compressor stations.

Tuesday, September 15, 2009

A Natural Gas Riddle

What starts with an "A" and ends with an "A" and is moving forward with a $37 Billion gas project?

(Answer). It's not Alaska.

The big money and big projects are out there.

To quote Ricky Bobby "If you ain't first you're last"

On a positive note a "Well Done" goes out to the team that just completed the surface section of the second well at Point Thomson.

Maybe if the politicians and the bureaucrats got their act together the next mega-project announcement would be in Alaska.

Saturday, September 12, 2009

Unite - One Line, One Future

The outlook for the Alaska Gas Pipeline has looked pretty grim lately. The slow economy, low natural gas prices, maxed out storage, the shale gas bonanza and floods of LNG seem ready to extinguish plans for an Alaska Gas Pipeline.

An yet there are long term fundamentals that will continue to propel this project forward if and only if policy makers work hard and work smart. An example of working smart is Alaska Governor Sean Parnell's stance on fiscal certainty and the idea of working together for one pipeline.

Alaska Gov. Sean Parnell said Thursday he's not going to negotiate with the oil companies over how much the state taxes natural gas until they unite behind a gas pipeline project and can prove they need the help in order for construction to start.

Parnell told a Resource Development Council gathering in Anchorage that "once they've come together on a project, then come talk to me" about taxes. (LINK).
Resolving the tax issues is the final link needed to get this project moving. Everybody knows that two pipeline projects is a non-starter. The major producers are on board, AGIA and TransCanada are still in play, and even ExxonMobil might be happy.

The time is right, the Governor is right, it's time to unite.