Wednesday, December 30, 2009

"Stand Alone" Pipeline

Funny name but the "Stand Alone" pipeline is worth keeping an eye on. Here's a link to the Army Corps of Engineers Environmental Impact Statement (EIS) website, and a link to a related news blurb.

Check out the 133 page project description (LINK).

Grasping at straws or the best bet? Comments appreciated.

Joint Review Panel Report - ISSUED !

Today the Canadians will issue and post the "The Joint Review Panel assessing the environmental and socio-economic impacts of the proposed Mackenzie Gas Project"

According to the media advisory the report will be posted here (LINK).

How does this relate to the Alaska Gas Pipeline? It's a model of the hurdles that await the Alaska Pipeline. Bud Fackrell (Denali Pipeline President) recently said he thought the Mackenzie Pipeline would start before the Alaska Gas Pipeline - we'll see if he's right.


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!

Saturday, December 19, 2009

Weekly Links

No earth shattering news this week, but here's a few links and items worth keeping an eye on:

LNG demonstration video (LINK) Spoiler Alert: It's cold, it burns, and the dude has a Bic lighter.

LNG Presentations - Who's got it, who wants it and what they pay for it. (LINK)

An Alaska Gas Pipeline article from 1979 (LINK) The most delayed project in history?

Mackenzie Gas Project Report due 31 Dec 09 (LINK).

TransCanada Alaska Pipeline Project's Pre-Filing Monthly Activity Report November 2009. PF09-11-000. (FERC WEBSITE LINK) Yawn....

Denali November09 Status Report (FERC WEBSITE LINK) Notable quote "lack of progress on the State of Alaska’s fiscal regime for natural gas production"

A road to somewhere (with oil) (LINK)

Monday, December 14, 2009

XTO - Do the Math

Exxon (XOM) bought shale gas player XTO today for a $41 billion in stock (LINK). According the the news release:

"XTO’s resource base is the equivalent of 45 trillion cubic feet of gas and includes shale gas, tight gas, coal bed methane and shale oil."
That's about $0.91/MMBTU of XTO gas resources. Compare that to Alaska's gas estimated at 169 trillion cubic feet. Figure half of that is on Exxon leases. Figure $30 billion for a pipeline, $15 billion for Exxon's share - that works out to less $/MMBTU for gas resources in Alaska.

Apparently the cost of bringing XTO resources to market is more attractive to Exxon than Alaska But stay tuned.

Thursday, December 10, 2009

New Coordinator Appointed

President Obama has appointed Larry Persily to replace Drue Pearce as the Alaska Gas Pipeline federal coordinator. (LINK).

Let's hope it's the right help at the right time. Good Luck Larry!

Sunday, December 6, 2009

Fiscal Certainty - No Perfect Deal

As the much awaited year of open season approaches we're starting to hear more along the lines of "no perfect deal", "fiscal certainty" and "reality check". The latest installment come from former state economist Roger Marks: (LINK to KTUU):

ANCHORAGE, Alaska -- A former state economist had strong words Friday on the future of Alaska natural gas. Roger Marks says it's time for a reality check to secure a natural gas pipeline and Alaska's future energy needs.

Marks says other alternatives, such as shale gas possibilities in the Lower 48, might be a more realistic approach from an investor's perspective compared to the projected $30 billion cost of an Alaska natural gas pipeline.

He says in order to encourage a gas line, state lawmakers should be prepared to make some concessions -- like considering a constitutional amendment to lock in tax rates for pipeline investors ahead of time.

"I think there seems to be an attitude of a lot of people that we're entitled to the perfect deal, and we should accept no less than the perfect deal," Marks said. "And, I think, as often happens a lot in life, if you wait around thinking you're going to get the perfect deal, you wind up with no deal."
Link to Commonwealth North study on Alaska gas (June 2008)