Saturday, December 26, 2009

Cook Inlet: "Running out of cheap gas"

The DOG Cook Inlet Gas study has been released (LINK). Quote from Director Kevin Banks cover letter:

Consumers relying upon Cook Inlet natural gas to meet their energy needs should know that while there is no need to panic, there is also no time to waste. Although it is apparent that sufficient reserves remain to provide for railbelt needs for the coming decade or more, the cost of providing energy to these same consumers is likely to rise. ...the basin is not running out of gas but it could well be running out of cheap gas. Investments in storage development, reserves replacement and pipeline infrastructure will place additional upward pressure on consumer energy prices.
Remain calm! All is well for about a decade or so!

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