Posted on 12/16/2008 5:30:16 AM PST by thackney
The various players involved in trying to build a North Slope natural gas pipeline will come together on the project, according to a top state oil and gas official.
"We believe it's only a matter of time until all the parties come together to accomplish our mutual goal," Marty Rutherford, deputy commissioner of natural resources, said at the recent "Energy in Alaska" conference hosted by Law Seminars International in Anchorage.
Rutherford said the belief comes against a "backdrop" of volatile natural gas prices and their impact on the expected profits on the project. She noted that while the price of oil plummeted over the latter half of the year, the price of natural gas did not fall as fast.
The state believes a natural gas pipeline would be "still very profitable" with gas prices of $5 to $6 per million British thermal units of energy. The current Henry Hub price in the Lower 48 is around $5.75 per million Btu, down from prices around $9 per million Btu at the end of July, a 36 percent decline that came as oil prices fell around 68 percent.
Those relatively more stable gas prices, combined with declining steel and labor costs, means "there are literally billions and billions of dollars to be made by all the parties" involved with the pipeline, Rutherford said, including the producers and the state.
...
The Canadian pipeline firm TransCanada and the BP-Conoco Phillips joint venture called Denali have started on competing plans to build a pipeline from North Slope gas fields to Canadian hubs.
The idea of the projects merging isn't new, but also isn't a given.
"The prevailing wisdom is that the two proponents for the mainline will, at some point in time, get together, since only one mainline can actually be built," Drue Pearce...
(Excerpt) Read more at adn.com ...
Where do you think the Natural Gas for this pipeline comes from?
[Where do you think the Natural Gas for this pipeline comes from?]
Most natural gas comes from pockets next to oil. The communist politicians will not use the oil but will drive the prices up by overtaxing the oil and make the American taxpayer unhappy as they take their stand against oil,nuclear and coal energy producers through overtaxation in the next four years. That is what communists do.
The natural gas for this pipeline will be produced from drilling. And it will be produced from areas where the oil is also being produced.
I don’t understand your comments in reference to this article.
that makes two of us, I’m afraid...
“The Canadian pipeline firm TransCanada and the BP-Conoco Phillips joint venture called Denali have started on competing plans to build a pipeline from North Slope gas fields to Canadian hubs. “
BP is actually spnding money on pipleline work, TransCanada is still stadnding around looking for more handouts.... Guess which one I support?
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