Alaska Oil and Gas Congress Right Around the Corner!
AJOC by Tim Bradner. Plans for a 24-inch natural gas pipeline built from the North Slope to Southcentral Alaska are moving forward a step at a time. A 430-mile state right-of-way was granted for the $7.52 billion project July 25 and a draft environmental impact statement is due out in August, Dan Fauske, president of the Alaska Gasline Development Corp., a state corporation, told state legislators in a briefing.
ADN editorial writer suggests that, "patience may be a trap, not a virtue, in the case of the gas line."
Anchorage, Alaska – The Alaska Gasline Port Authority last week released the results of the Liquefied Natural Gas (LNG) Project Comparison Study performed by global energy analysts Wood Mackenzie. The study compared the economics of the large-volume All-Alaska Gasline/LNG project to Valdez-which runs parallel to TAPS, with a spur line to Southcentral Alaska-with nine other LNG projects being advanced or under construction in Australia, Western Canada, and the Lower 48. The report concluded that due to Alaska’s
competitive advantage and strong price forecasts for the Asian energy markets, the All-Alaska Gasline could generate State revenues of $3 billion the first year, increasing annually to $5 billion in Year 5 and up to $24 billion in Year 30. Wood Mackenzie estimates the project could generate between $75 to $419 billion in total State revenues over a 30-year life. Currently, the State of Alaska currently receives approximately $5 billion annually from oil revenues. "The economics for LNG from Valdez are superior to the comparable projects," AGPA General Counsel Bill Walker (NGP Photo) said. (Note: thanks to Scott Heyworth (NGP Photo) for the link.)
Following up on Friday’s report about the BOEMRE-Polar Bear controversy, we compliment the Alaska Dispatch on its insightful series of stories and interviews shedding greater light on the issue:
Fairbanks News Miner by Congressman Doc Hastings (NGP Photo)
Last month, I had the opportunity to travel to Alaska to tour energy development projects with Gov. Sean Parnell and Rep. Don Young. We traveled to ConocoPhillips’ Alpine field, where we viewed the National Petroleum Reserve-Alaska, Kaktovik on the Arctic National Wildlife Refuge coastal plain, where I attended a community meeting with local citizens, and Prudhoe Bay, where we viewed the transAlaska oil pipeline.
There is no question that Alaska is blessed with scenic landscapes and a vibrant ecosystem; however, it is also home to some of the most abundant energy resources in this country.
These resources, if responsibly harnessed, hold the potential to significantly strengthen American energy independence, create thousands of American jobs and generate billions of dollars in new revenue.
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