ConocoPhillips Submits Proposal to Advance the Development of the Alaska Gas Pipeline Project

BUSINESS WIRE ^ | November 30, 2007 | ConocoPhillips

[thackney]

ConocoPhillips (NYSE:COP) today announced that it has submitted a proposal to the governor of Alaska to advance the development of the Alaska Gas Pipeline Project. The proposed pipeline would transport approximately 4 billion cubic feet per day of natural gas from the Alaska North Slope to markets in Canada and the United States.

ConocoPhillips is prepared to make significant investments, without state matching funds, to advance this project as part of this proposal. The company already has efforts underway to begin new field data acquisition to support the pipeline permit applications.

“We desire to work directly and purposefully with the state of Alaska and the Legislature to advance this project as quickly as possible,” said Jim Mulva, chairman and chief executive officer of ConocoPhillips. “We also expect to approach other parties to explore ways through which their participation could add value to this effort.”

During the initial phase of the project, Bechtel Oil, Gas and Chemicals, Inc. will provide engineering and technical support and other related project services.

ConocoPhillips is an integrated petroleum company with interests around the world. For more information and to see a copy of the complete proposal, go to www.conocophillips.com.

[thackney]

Last day for proposals, I believe.

[thackney]

ping

[Eric in the Ozarks]

Wasn’t there some criticism of Exxon some years back, for allegedly shutting in Alaska gas because of other holdings they had ?

[thackney]

Yes. Alaska has been going through the legal process to take back Point Thompson because of ExxonMobil’s lack of developing it.

Exxon gets cold shoulder, 04/08/2007
http://www.petroleumnews.com/pntruncate/928052366.shtml
Point Thomson operator’s drilling plan for defunct leases, unit ignored by DNR

No stay on Pt. Thomson, 05/06/2007
http://www.petroleumnews.com/pntruncate/451939571.shtml
Court rules against companies, says DNR can move forward with lease termination

Superior Court decision on Point Thomson out by end of year, says judge; then likely on to Alaska Supreme Court
10/14/2007
http://www.petroleumnews.com/pntruncate/507344290.shtml
An Alaska Superior Court decision on the termination of the Point Thomson unit should be out by the end of the year.

[Western Phil]

Hope this works our. Should cut down on the global warming caused by flaring of the gas.

Will they use Chinese pipe?

[thackney]

Should cut down on the global warming caused by flaring of the gas.

North Slope Natural Gas is only flared for upset conditions or very tiny amounts to keep flares lit in preparation for a possible upset. Some Natural Gas is used for fuel for heaters and generators. Most of it is re-injected into the reservoir to maintain reservoir pressure and "bubbling" of Gas lift systems in lieu of pumps. The Gas uses is well tracked and documented.

[bert]

You seem up on the subject.

What is happening in the Alaska Petroleum Reserve to the west of the Prudho/pipeline route. I read that they were auctioning some of the area.

I don’t understand why the push to Anhwar when there is apparently great areas of untapped and unexplored territiry just to the west.

[thackney]

What is happening in the Alaska Petroleum Reserve to the west of the Prudho/pipeline route.

Leasing has been done in some of the areas. Exploration has been done in some of that. The first planned production facilities have been held up for a couple years do to permitting problems with the Bridge from Alpine Production Factility to the units in NPRA that will be operated by ConocoPhillips.

I don’t understand why the push to Anhwar when there is apparently great areas of untapped and unexplored territiry just to the west.

The Alaska National Interest Lands Conservation Act (ANILCA) of 1980 had several parts including enlarging ANWR to the size it is today. The statute protected over 100 million acres of federal lands in Alaska, doubling the size of the country’s national park and refuge system and tripling the amount of land designated as wilderness. ANILCA expanded the national park system in Alaska by over 43 million acres, creating 10 new national parks and increasing the acreage of three existing units.

Section 1002 of this act required the barren coastal plain of ANWR to be investigated for oil. There are actually seeps in this area were oil is coming out of the ground. If this part of the agreement is not kept, the rest of the land removed from use should be returned and permitted for development.

The advantage ANWR coastal plain has over NPRA is similar amounts oil in a much, much smaller area. 1.5 million acres versus 23 million. Much fewer facilities and pipelines would be required to produce similar amounts of oil.

This should not be an either/or situation. In all the land grabbing the Federal Government did in Alaska, BOTH areas were set aside for petroleum resource development. Both should be developed. The federal government controls most of the land of Alaska. Less than 1% has ever been sold for private ownership and development.

You seem up on the subject.

I was on the design team for a couple year of the NPRA oil producing facilities that remain on hold. I have since left Alaska back to Texas.

[thackney]

For Reference, NPRA is bigger than West Virginia, South Carolina or Maine.

[Western Phil]

Thanks for the information, that is good to know. What’s the story in Saudi and the rest of the Middle East? Night time satelite photographs show a lot of light in the middle of the Saudi desert. http://antwrp.gsfc.nasa.gov/apod/image/0208/earthlights02_dmsp_big.jpg

We live in Illinois and I was always impressed with the number and size of flares around the oil wells near the freeway by Effingham,any one of which probably used up enough natural gas to heat a small town. It must not have been economically feasible to recover that. Most of those wells seem to have been shut down.

[bert]

.....Section 1002 of this act required the barren coastal plain of ANWR to be investigated for oil......

Well, this thread is definitely a keeper.

If I interpret correctly, the law requires investigation but somehow can’t be implementred because the same or other law prohibits entry onto the land with the equipment necessary to make the investigation.

Since the law requires investigation, why is it not taking place? Has the investigation successfully been been made but further action is not permitted ?

I had the opportunity to visit Alaska recently and made it as far north as the Arctic Circle. At a store at the Yukon River they had bumper stickers “Happiness is an Okie headed home with a Texan under each arm” :0)

[thackney]

What’s the story in Saudi and the rest of the Middle East? Night time satelite photographs show a lot of light in the middle of the Saudi desert.

There is development in Saudi Arabia above the southern area known as the empty quarter (Rub'al Khali)

I was always impressed with the number and size of flares around the oil wells near the freeway by Effingham,any one of which probably used up enough natural gas to heat a small town.

You would probably be surprised at how little gas uncontained makes a large looking flame at night.

[thackney]

If I interpret correctly, the law requires investigation but somehow can’t be implementred because the same or other law prohibits entry onto the land with the equipment necessary to make the investigation.

Since the law requires investigation, why is it not taking place? Has the investigation successfully been been made but further action is not permitted ?

It takes Congress approval and Presidential Signature to proceed. It passed the House and Senate in 1996 but Clinton Vetoed it.

Arctic National Wildlife Refuge, 1002 Area, Petroleum Assessment, 1998, Including Economic Analysis
http://pubs.usgs.gov/fs/fs-0028-01/

The Alaska National Interest Lands Conservation Act (1980) established the Arctic National Wildlife Refuge (ANWR). In section 1002 of that act, Congress deferred a decision regarding future management of the 1.5-million-acre coastal plain ("1002 area") in recognition of the area’s potentially enormous oil and gas resources and its importance as wildlife habitat. A report on the resources (including petroleum) of the 1002 area was submitted in 1987 to Congress by the Department of the Interior (DOI). Since completion of that report, numerous wells have been drilled and oil fields discovered near ANWR, new geologic and geophysical data have become available, seismic processing and interpretation capabilities have improved, and the economics of North Slope oil development have changed significantly.

The U.S. Geological Survey (USGS) commonly is asked to provide the Federal Government with timely scientific information in support of decisions regarding land management, environmental quality, and economic and strategic policy. To do so, the USGS must anticipate issues most likely to be the focus of policymakers in the future. Anticipating the need for scientific information and considering the decade-old perspective of the petroleum resource estimates included in the 1987 Report to Congress, the USGS has reexamined the geology of the ANWR 1002 area and has prepared a new petroleum resource assessment.

[ASOC]

I must say - I am shocked. I thought there would be no proposals.

Shows what I know about the patch these days.

[RightWhale]

Will they use Chinese pipe?

Last time they used Japanese pipe, there being no American manufacturer with the capacity. We will know the project is actually going through when pipe is ordered, which is two years away at the soonest. The proposal is to be submitted to the Alaska State legislature in Feb. Watch Hillary!08 and her attempt to take oil company profits for the common good. The project would take about $30 billion.

[RightWhale]

Has the investigation successfully been been made

At least one discovery well was drilled before it became illegal.

[thackney]

I thought the same thing.

Of course, without knowing the content of the proposal, it may amount to the same thing.

[thackney]

I forgot to mention:

ConocoPhillips is prepared to make significant investments, without state matching funds, to advance this project as part of this proposal.

I think that should be an indication it will NOT be a AGIA conforming proposal.

[ASOC]

I can see them wanting to avoid any State participation. This project will be a nightmare of regulation, right of way and tax issues the likes of which have never been seen before.

OTOH, the extra money flowing thru Anchorage will be nice. A good time to sell and move before the maket crashs totally. I hope you got out before the market went soft...

[bert]

Thanks, so much...