Dan Fauske’s (NGP Photo-below) 10-14-10 Presentation to Alliance Re: Status of In-state Gas Pipeline

John ZagerADN by Elizabeth Bluemink.  Chevron said the company will offer for sale its interest in several offshore and land-based oil and gas fields, 10 offshore rigs and two gas tank farms. The company also plans to sell its interest in the companies that operate two regional pipelines.  John Zager (NGP Photo), the company’s Alaska general manager, said Chevron will continue to focus on safe, reliable operations while it searches for a buyer who will "further develop (the assets’) potential." 

Tacoma News Tribune.  Question of Alaska Congressman Don Young (NGP Photo): "9. What is your position on the federal loan guarantees for an Alaska natural gas pipeline?  • Increase them  • Maintain them as they are  • Decrease them  • Eliminate them  Why? What specifically would you do to carry out your position if elected?

Congress has repeatedly reaffirmed its support for the pipeline project to include loan guarantees. The loan guarantees stand at $18 billion, but there is a Senate proposal I will support in the House to increase this to $30 billion. An Alaskan pipeline will be competing with the Canadian Mackenzie project and inexpensive shale gas in the Lower 48. This, coupled with tighter credit creates significant issues for the project’s advancement.  Don Young

Dripping Oil Blog.  A recent article in the Financial Times of London where Conoco’s (NYSE:COP)chief executive officer Jim Mulva said the company may have to "reaccess" the Denali pipeline it is proposing to develop with partner BP (NYSE:BP).  The comment was based upon the enormous amount of natural gasreserves in the lower 48 states, which Conoco spokesman John McLemore commented on saying: "Clearly, shale gas (in the Lower 48) has changed the dynamics of natural gas in North America."  … Mulva did say after his comments to FT that natural gas still remains an "attractive" investment for the company, although it seems he’s starting to think longer term than he was in the past.  … It sounds like in the shorter term things aren’t looking nearly as good because of the huge supply for the pipeline, and it’ll be interesting to see if that affects the timing of starting the pipeline, if it gets built at all by Conoco and BP.  Another factor is a competing proposal from Exxon Mobil (NYSE:XOM) and TransCanada to built a pipeline serving the same region.

CBC.  The independent panel that reviewed the proposed Mackenzie Valley natural gas pipeline has blasted the federal and N.W.T. governments for rejecting many of its recommendations on how to make the project successful.  The Joint Review Panel says all of its 176 recommendations must be followed to ensure the proposed 1,200-kilometre pipeline, which would run natural gas through the Northwest Territories to northern Alberta, benefits northerners while having a minimal impact on the environment.     ***     Metro News.  Rob Powell of the World Wildlife Fund praised the panel’s insistence on the need to fund environmental monitoring in the area.    ***    Kelowna Now!  The Joint Review Panel says all of its 176 recommendations must be followed to ensure the proposed 1,200-kilometre pipeline, which would run natural gas through the Northwest Territories to northern Alberta, benefits northerners while having a minimal impact on the environment.  Of those 176 recommendations, 115 were aimed at the federal and N.W.T. governments. But in an interim response released earlier this year, the two governments fully accepted only 10 of those recommendations.