Gas to the States by 2008
By
K. Thompson (Pacific Rim Leadership Development)
Large pipeline companies and energy
trading firms
announced a reconstitution of an historic partnership to further progress on a
gas pipeline from the North Slope across Alaska and Canada to the Lower 48
states. Pipeline capital, overhead and operating costs will be reduced by the
pipeline companies as compared to cost estimates by the producers. Natural gas
liquids sales will add incremental value to the methane sales and Federal
legislation with incentives will increase the rate of return for these
investors. Two or three of the North Slope major producers may join the pipeline
company consortium or may purchase capacity on a gas line to transport their
share of production. The State of Alaska will also market their royalty share of
gas to
energy
trading firms and to select premium customers. Additional instate
gas infrastructure will distribute reasonably priced natural gas, propane and
gas-generated electricity to growing Alaska markets and value added processing
facilities. The huge natural gas reserves on the North Slope are needed as part
of the U.S.
energy
security strategies to use more domestic
energy
resources and
to use more
clean
burning natural gas. Natural gas demand growth will rebound as
the U.S. economy recovers and grows after a recession. North Slope gas will be
competitive and will be a key part of the
energy
security of the United States
as the country adopts ways to lessen dependence on Middle East oil.
AAPG Search and Discovery Article #90008©2002 AAPG Pacific Section/SPE Western Region Joint Conference of Geoscientists and Petroleum Engineers, Anchorage, Alaska, May 18–23, 2002.