Parnell, Walker continue to trade blows over Fairbanks' high energy prices. Fairbanks Daily News-Miner.
Sean Parnell's campaign fired back at independent gubernatorial candidate Bill ... 30 years to deliver on a natural gas pipeline and has utterly failed,” Wright said. ... If he'd taken action, Fairbanks might have been getting gas today.”.
Pipeline Hopes Spring Eternal
CBC News. Premier Brian Gallant will use a four-day trip to Alberta to meet with business and political leaders to show his new government’s support for the Energy East pipeline.
Gallant and Energy Minister Donald Arseneault will leave for Alberta on Sunday and he will meet with Premier Jim Prentice, TransCanada Corp. officials and spend time drumming up possible investment opportunities
The Calgary Herald provides a report by the Canadian Press' Ross Marowitz this morning describing opposition in Quebec originating from the province's largest gas distributor, Gaz Metro to TransCanada's Energy East pipeline project.
U.S. and Canadian energy companies employ best practices in the world for exploration, development transportation and distribution, refining and marketing of oil and gas. Complex as it is, our companies can easily design, build and operate state-of-art facilities. Those facilities produce wealth for our countries, our companies, our citizens and an economic platform for the coming generations.
No, building facilities is easy compared with the political and regulatory challenges.
In the U.S., politics almost 4 decades ago caused the two governments to choose an Alaska Highway route for moving Alaskan and Mackenzie Delta gas to market. The less politically popular Arctic Gas project, a 27-member consortium at its zenith, would have done the job more efficiently. TransCanada was one of its principle members. The politically chosen project was never built.
In mid-1973, Vice President Spiro Agnew provided the final, tie-breaking U.S. Senate vote that allowed construction of the trans Alaska oil pipeline to begin. Imagine how history would have changed had the politicians erred by one vote--sending that project to the scrap heap.
Now, one witnesses support from the American people, from affected states and even from the U.S. State Department for building TransCanada's Keystone XL pipeline, creating thousands of jobs and increasing the North American supply of crude oil. That which is exported provides valuable foreign exchange and less dependency for crude oil on less friendly regimes. But the White House refuses to allow the international project to go forward for purely political reasons: his environmental activist friends oppose it.
Imagine how history without this pipeline will affect the wealth of citizens, companies, states and the national economies of Canada and the United States. Imagine this being done by an administration presiding over an accumulated deficit now approaching the unfathomable level of $18 trillion, a debt per taxpayer of plus or minus $153,000. Not to mention national defense implications and an injured relationship between two of the world's greatest friends and trading partners.
While the Keystone XL pipeline proponent, TransCanada, awaits final word from the U.S. on that project it is furiously seeking to create another outlet for prolific Alberta oil sands production and make best use of an underused gas pipeline.
We made reference, yesterday, to the $12 billion Energy East project, designed to convert a natural gas pipeline with spare (i.e. unused) capacity into a fully used oil line.
Marowitz noted in his report that it, "...would be one of the biggest infrastructure projects in Canadian history, crossing six provinces and traversing 4,600 kilometres in total. Roughly two-thirds of it would make use of underused natural gas pipe that's already in the ground, with new pipe being built through Quebec and New Brunswick. The idea is to connect oilsands crude to eastern refineries and to export some of the oil by tanker."
He concludes with a Deloitte study conclusion that the gas to oil pipe conversion, "...will boost the Canadian GDP by $35 billion over 20 years, add $10 billion in taxes, support 10,000 jobs and help eastern refineries.
When TransCanada files its application to proceed with the National Energy Board (i.e. NEB, Canada's counterpart to the U.S. Federal Energy Regulatory Commission, or FERC) Gaz Metro is likely to file in opposition to the project, partly on the basis that the underused TransCanada gas line currently provides the extra gas needed during high demand, winter months. One can envision a protracted, contested TransCanada application that can cause delay, raise costs and reduce value to taxpayers and ratepayers alike. We would hope Gaz Metro, on behalf of its consumers, would work out a private compromise with TransCanada that would be mutually acceptable. We would hope, too, that TransCanada would be flexible enough to join in a cooperative effort to resolve differences around a bargaining table rather than before an expensive and unpredictable regulatory, tribunal. Just look at the NEB's propensity to attach unpredictable and costly "conditions" to application approvals that could cause significant angst and expense for project proponents (e.g. Just 'Google', "conditions NEB pipeline").
TransCanada is also the big-inch gas pipeline member of the Alaska LNG Project consortium attempting to build a pipeline/LNG project designed to transport long-stranded Alaska North Slope Gas to Asian markets. This is the most feasible concept now that the gas shale phenomenon has precluded the need for Mackenzie Valley and Alaska Highway gas pipelines (i.e. In both projects, TransCanada played a leading role).
One can imagine the tension that must exist in the TransCanada board room with three world class pipeline projects all teetering between approval and rejection amid tumultuous world tensions in a volatile regulatory, political, price, supply and demand environment!
If none of the three projects moves forward, that will be a big problem for shareholders since so much development cost will be written off and/or shared with existing pipeline ratepayers.
If all three projects were to receive market place and political and regulatory approvals, that in and of itself would be a huge challenge for TransCanada to manage in the coming decade.
Management of multiple mega projects poses a huge variety of challenges, including but not limited to: 1) transitioning from a baby boomer, experienced pipeline workforce to a vast generation of new workers; 2) giving existing pipeline maintenance, marketing and construction adequate attention; 3) convincing Alaska partners and other project stakeholders that it has the resources to manage all the projects in a somewhat similar timeframe; 4) conducting three world class stakeholder engagement programs both prior to, during and following construction; and 5) managing state, provincial and federal regulatory filings and disputes in both countries and across many states and provinces; and 6) dealing with limited, worldwide big inch pipe manufacturing and other logistical capabilities.
Having worked with and known TransCanada for a long time, we believe that if any company is capable of absorbing such multiple challenges, it is TransCanada.
That said, one hopes -- for the sake of North American economies -- that all three projects are successful and that TransCanada can successfully and efficiently build and operate them.
One also hopes that these three projects will 1) moderate world tensions in Europe, where new, North American energy might take the edge off of Russian energy blackmail/bribery; 2) free Alaska stranded gas while filling an Asian demand from a secure and diversified, North American source; and 3) enable the United States and Canada to reaffirm their historical relationship as each others' largest trading partner and best friend.
While hope is not a strategy, one cannot resist the belief that hope does, indeed, spring eternal and will win in the end.
In an Alaska Dispatch interview, Governor Sean Parnell (NGP Photo) said, "With the passage of SB 138 earlier this year, we are taking steps toward construction of a natural gas pipeline.
"Federal applications have been submitted, and my administration is now working with potential buyers in Japan. My administration continues to identify various financing mechanisms for the state's portion of this project; thanks to our solid credit rating, we have options." Read more here.
10-10-14 "Interesting Moments" From Our Video Archives - Alaska's Congressional Delegation Unites On LNG
The Alliance's Rebecca Logan writes, "Great presentation yesterday morning by Greg Lalicker from Hilcorp! Over 200 folks in attendance!!" We are pleased to attach that presentation for your review. -dh
We know two Members of Alaska's Congressional Delegation who oppose President Obama's irresponsible use of Executive Orders and EPA's preemptive blockage of projects which destroys the concept of "due process" and "Rule of Law".
Here, the President has, by fiat, created the "San Gabriel National Monument", without public input. We would hope that our Democrat Senator, Mark Begich (NGP Photo), could prevail on the President -- along with his Republican colleagues -- to avoid such unilateral actions which we could otherwise see repeated before 2016 in Alaska and other resource rich states. -dh
Senate Energy Committee Communications Guru Robert Dillon writes us that, "The Wall Street Journal opinion page yesterday took the Obama administration to the woodshed for failing to take advantage of the historic opportunity to improve our security and economy by strengthening energy ties with Canada and Mexico."
In a violent, disordered world, the disagreements among the U.S., Canada and Mexico are minor. The benefits of uniting the economies of these three huge, peaceful nations are real. But it will require a U.S. presidential candidate with some of Prime Minister Harper’s vision to make it happen.
Amateur Hour Energy Videos For Our Readers and For Our Archives (Along With Hundreds of Thousands of Research Documents, Presentations, Maps, News Items and Editorials: Google Search Our Archives, Upper Right Column.)
In reviewing our "amateur hour" You Tube Channel, we encounter some “Interesting Moments” in Northern Energy history. Your author recorded these moments, over the years, either 1) to post on his northerngaspipelines.com webpage, or 2) as research for articles, or (3 as requested raw footage for other news/video producers. These links will become a part of the Northern Gas Pipelines archives. Other tapes preserved on this channel are more personal in nature or deal with other than energy subjects. None of our videos pretend to be professionally filmed. Enjoy!
Warren Buffett Congratulates Governor Sarah Palin (Then, not now....)
- Lt. Gov. (Now, Governor) Phil Bryant Discusses States’ Rights
- Governor Sean Parnell Discusses National Energy Policy
- Governor Sean Parnell Summit With Chairman Wu Bangguo
- Andrew Halcro: Alaska Gas Pipeline
- Oilfield Worker Ron Barks On Government Energy Policy
Here are some other unedited videos on our VIMEO channel:
- Senator Lisa Murkowski On The Federal “Assault On Alaska”
- Governor Jay Hammond And Legislature Define ‘Fair Share’ Of Petroleum Revenue
- Dave Harbour On Value Of Calgary Arctic Gas Symposium
Alaska Delegation Letter To DOE
Alaska Delegation Urges DOE to Approve Alaska LNG Export Application
U.S. Sens. Lisa Murkowski, (NGP Photo), Senator Mark Begich (NGP Photo) and Congressman Don Young, R-Alaska, last week called on the Department of Energy to expeditiously approve a liquefied natural gas (LNG) export license to ensure Alaska’s stranded natural gas resources reach market.
In a letter sent to Director of the Division of Natural Gas Regulatory Activities John Anderson, the delegation detailed the Alaska LNG Project’s plans to export LNG to both free-trade agreement (FTA) and non-free trade Agreement (non-FTA) countries, as well as its importance to the state’s future.
“The Alaska LNG Project would be the largest integrated natural gas, LNG project of its kind ever designed and constructed, with an estimated cost of $45 billion to $65 billion,” the delegation wrote. “No other single project is as important to Alaska’s economic future as this massive infrastructure project.”
The developers of the Alaska LNG Project – Exxon Mobil, ConocoPhillips, BP, and the pipeline company TransCanada – are seeking a license to export 2.5 billion cubic feet of natural gas a day for 30 years. To date, the largest volume of LNG approved for export by DOE was 2.2 Bcf a day for the Sabine Pass project in Louisiana. DOE has also typically approved licenses for 20 years.
“This is an important project for the future of the state’s economy and it’s important that DOE officials move quickly to approve it as they have all other export projects from Alaska,” Murkowski said. “I’m committed to doing everything I can at the federal level to push it across the finish line.”
“This is another good step get this critical project moving, and I am glad to stand together with the rest of the delegation,” said Begich. “This natural gas project is good for Alaska’s economy and will create jobs, not to mention the Alaska LNG Project would provide Alaskans significant state revenue, thousands of high-paying construction and operational jobs, and access to low-cost energy.”
“The Alaska LNG Project is a long time coming, and I’m pleased that a united congressional delegation is working to remove federal barriers to bring our tremendous natural gas resources to market,” said Young. “Projects such as this will encourage Alaska’s prosperity by ensuring well-paying jobs for our citizens and added revenue for our state, all while continuing Alaska’s role in meeting the energy needs of the 21st Century.”
The delegation pointed out that DOE has previously acknowledged that treatment of LNG export applications in Alaska will necessarily differ from lower 48 applications, and that a presidential finding from 1988 stating that exports of LNG from Alaska “will not diminish the total quantity or quality nor increase the total price of energy available to the United States” is valid and applicable to the Alaska LNG Project application.
“We believe that the export authorization sought by the Alaska LNG Project is fully consistent with both the public interest of Alaska and the nation,” the delegation wrote. “As the Alaska Congressional Delegation, we write to request that you approve this application expeditiously.”
Alaska LNG team in place - 10/05/2014 (Full story) Three project offices for the Alaska LNG Project — in Anchorage, Houston and Calgary — are up and running, legislators were told Sept. 29 in Anchorage at the first public update on the project since enabling legislation was signed into law in May. Steve Butt, overall manager for the Alaska LNG
- Guide to Alaska natural gas projects - 10/05/2014 Pipeline to Southcentral A 737-mile, 36-inch buried pipeline from the Prudhoe Bay field on Alaska's North Slope to the Big Lake area north of Anchorage. From there, the gas could flow to consumers, utilities and other industry via the local distribution pipelines of ENSTAR Natural Gas Co. The pipeli....
- CIPL to replace west side pipe section - 10/05/2014 Cook Inlet Pipe Line Co. has applied to the U.S. Army Corps of Engineers for work required to replace a 6,000-foot section of the crude oil pipeline which runs along the west side of Cook Inlet. CIPL, owned by Hilcorp subsidiary Harvest Alaska, needs Corps authority for a temporary gravel pad to su....
- Cook Inlet Energy to drill gas prospect - 10/05/2014 Cook Inlet Energy LLC is planning to drill an exploratory well on its Kahiltna natural gas prospect in the Susitna basin. The Anchorage-based company lays out the project in a plan of operations filed recently with the Alaska Division of Oil and Gas. Cook Inlet Energy holds exploration licenses on e....
|Guide to Alaska natural gas projects Petroleum News
14 issue of Petroleum News, includes the Alaska LNG Project, ... TransCanada and the Alaska Gasline Development Corp.; a smaller-scale LNG ...