Gwozd Says Arctic Gas Needed to Replace Declining Conventional Reserves – Korea To Buy Shell’s Delta Assets?

 The CBC report suggests Korea may purchase Shell’s Mackenzie Delta assets!

Ziff Energy’s Bill Gwozd responded to our editorial material yesterday:  Ziff Energy still has Alaska and Mackenzie Delta flowing in our models – both are required.  The key point you may wish to share with your readers is these projects have a 25 year life starting 2020/25 and ending 2050 ish.  So the questions the readers may wish to ask the politicians is what gas supply will be flowing in North America at 2035 (midterm of Alaska) and say at 2050?  Conventional gas is undergoing a structured retreat so can unconventional gas support the market growth and the fall off via conventional gas in 2050? 

SaskEnergy is spending $6.5 million to inspect and replace gas lines in the province–CBC.

Commentary:  Yesterday, NARUC President Tony Clark (NGP Photo-R) opened the last general session of the conference by raising the daunting subject of the cost of replacing aging utility infracture.  He pointed out that defered capital expenditures spaned all of the regulated entities from pipelines to water, gas and electric utilities.  NARUC’s judgment is that in the next few years $1 to $3 trillion could be requiredto satisfy aging infrastructure challenges.  

Interstate Natural Gas Association of America (INGAA) Chairman Allan Bradley (NGP Photo-L) said that the, "…rapidly growing shale industry…," is causing a fundamental change in the country’s pipeline grid and predicted that over the next decade over $8 billion will be spent on new facilities.  This investment could result in 1400 miles of new transmission main lines and laterals enabling an expanded national throughput of 43 billion cubic feet/day.

American Water Company President and CEO Jeff Sterba….

(Story scheduled for completion this coming weekend.)