Doig's June Digest Reviews Denali's Closing and Other Northern Energy Issues

Doig’s June Digest Reviews Denali’s Closing and Other Northern Energy Issues

Comment on Chukchi Sea Exploration Program Today!

Doig’s Digest, by Ian Doig. It is no surprise – the North American unconventional shale gas explosion that has been underway for the last decade continues to take its toll. Unfortunately, that toll becomes bigger when it is coupled with low natural gas field prices that travel without any near term sign of going higher. The combination of these two events recently became too much for the Denali – The Alaska Gas Pipeline, owned by BP PLC and ConocoPhillips. Three years after it opened up shop on June 11, 2008, to transport Alaskan North Slope natural gas the proposed pipeline is waving the white flag and closing up. Carrying estimated capital costs of (US) $36.0 billion ($ 2009), the project announced on May 17th that it is in the process of withdrawing its Open Season (Docket No. PF08-26-001) filed with the Federal Energy Regulatory Commission (FERC) on April 7, 2010. The companies found that it is a very difficult environment in which to secure financial commitments from potential customers.