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.