Exxon LNG Project - Moving Forward

Here's a link to a good news story, big Exxon LNG project moving forward - Only one problem - It's not in Alaska.

NEW YORK, Dec 17 (Reuters) - Exxon Mobil said on Wednesday it has received delivery of two of a new breed of massive liquefied natural gas (LNG) tanker this month, which will ship gas from projects in Qatar to importing markets around the globe.

Gas Line Wish List

According to Marty Rutherford, deputy commissioner of natural resources:

"We believe it's only a matter of time until all the parties come together to accomplish our mutual goal"

(Link to full story).

That's a happy thought, but why? Will wishing for it make it so? What does TransCanada have the the Denali Pipeline needs? Of course TransCanada needs money, actually more US taxpayer money to build the gas line and gas to fill it with. The North Slope producers have the financing and they have the gas.

And while we're penning a happy note to Santa asking for a pipeline merger go ahead and ask for $140/bbl oil and $2/gal diesel. Dream on Marty, and happy holidays!

Throw out the AGIA

Build a short gas line to Valdez and sell liquefied natural gas (LNG) to the highest bidder. It's a capital idea sidetracked by the Alaska Gasline Inducement Act (AGIA). As the reality of AGIA sets in expect more calls like this one (LINK) from Alaska Gasline Port Authority board member Merrick Peirce (quote from Fairbanks News Miner):

"The Legislature should toss out AGIA as soon as it gets back in session, and it should get to work on the Alaska gas line. It is the only way Alaska can avoid economic devastation. If the Legislature refuses to change course, then legislators have the obligation to explain how they will replace declining state oil revenue. Do they prefer to end the dividend program first, then impose an income tax, or do they want to slash state spending and lay off state employees? What will that do to our economy?"

You know the old saying about all the eggs in one basket - Well the Canadian basket is getting pretty full - they got the $500Million inducement, they want billions in loan guarantees, the want a guaranteed high rate of return, and they can't promise regulatory approval anything built in Canada. It's going to get ugly before it gets better so hang on!

Hey Buddy - Spare a few Billion for a Pipeline?

INTERVIEW-TransCanada looks for more Alaska guarantees

By Scott Haggett (Forbes)

CALGARY, Alberta (Reuters) - TransCanada Corp , which was sanctioned by Alaska last week to build a $26 billion pipeline to ship the state's natural gas, wants the U.S. government to boost the loan guarantees offered for the project, its chief executive said Tuesday.

Hal Kvisle, chief executive of Canada's biggest pipeline and power company, said inflation has cut the value of the $18 billion in loan guarantees authorized in 2004 by the U.S. Congress, which was then looking to speed construction of the massive project.

Pipe Dreams to Nowhere: Another Palin Lie

From Geoffrey Dunn of the Huffington Post (LINK to full story):

Palin has always been fast and loose with the truth (and her capacity for self-promotion would seem to know no bounds), but her duplicity about the pipeline extends far beyond whether it is currently being built or not --it is not--but whether or not it ever will be built. "That pipeline," she declared at the GOP convention, "when the last section is laid and its valves are opened, will lead America one step farther away from dependence on dangerous foreign powers that do not have our interests at heart."

Well the first section is at least six years away, and many contend that it will never be built at all. As one Alaskan state legislator grumbled at the license signing, "This AGIA license is not a commitment to do anything other than process a whole lot of paper."

Palin has repeatedly trumpeted the pipeline as an example of her energy know-how and pragmatic politics. She also has claimed, as she did at the convention, that she has single-handedly imposed "competition and basic fairness" to oil and gas production in the Last Frontier.

In fact, as is often the case with Palin, it's all hat and no saddle.

Zane Henning, a longtime critic of Palin and an oilfield worker on the North Slope, says "I can guarantee that the AGIA pipeline will not be built unless the State of Alaska passes a long-term tax policy that the oil companies agree with."

There's that comment again - long term fiscal certainty. You think that concept will ever soak into Palin's head? We may not be making real progress towards a pipeline, but all the bad ideas need to run their course before we get down to business.

The Alaskan Pipeline - A Wolf in Sheep's Clothing?

Apparently not all Canadians think the Alaska Gas Pipeline is a good thing. Here's a link to a Canadian opinion that Alaskan gas will lower prices and hamper gas development of Candian natural gas.

"While construction of the Alaskan pipeline will likely have a positive impact on Canada's economy in the shorter term, once it is up and running it will make Alaska into a direct and effective competitor for Alberta and BC's natural gas industry," said Ralph Glass, VP Operations of AJM Petroleum Consultants. "Looking ahead, we have to consider the fact that the Alaskan pipeline will increase natural gas volumes into the US market. This could keep natural gas prices low in future years - low natural gas prices will have a significant impact on future drilling here in Canada."