To the chagrin of many, my self included (hey, I use this stuff, too), higher prices will be needed to make that development attractive. We deplete proven reserves of Natural Gas at about 7% per year, and if enough drilling is not done to replace that, our supplies will be inadequate--it is just a matter of time.
Natural gas suffered the triple whammy of Enron, environmental action against Coalbed Methane projects, and the price collapse of the late '90s, where new drilling fell behind the consumption curve.
A lot of gas is found with (dissolved in) oil, and that simply did not get found when drilling either slowed to a crawl, or stopped completely.
Converting all those power plants to burtn Natural Gas instead of coal or oil has also put the pinch on supplies, so, once again the enviroweenies get credit.
As far as the North Slope natural gas is concerned, there is enough, proven, to fill their 52-54" pipeline for fifty years. They have something like 25 trillion cubic feet, but claim to need 50 trillion to make the pipeline worthwhile. I think that estimate was made when natural gas was below $10, probably $5-6. Most of the gas would head toward Chicago in the most likely plans. Some would be used locally, Fairbanks and villages along the route.
If some industry is built in Fairbanks, though, copper smelting for example, more of the gas could be used here.
Excellent and concise summary of the problem.