Friday, May 11, 2012

Are we really closer to a natural gas pipeline? Nah.

In an Anchorage Daily News op-ed piece on May 11, 2012, Governor Sean Parnell extolled that his Administration was closer than ever to a large diameter natural gas pipeline being built, because of the settlement with Exxon over the Pt. Thompson development. One has to wonder just what this guy is on in terms of meds? He must be on the same psychotropic, hallucinogenic medications that the Legislature is on.

Otherwise, how could one reconcile the Legislature’s seemingly mindless following of Rep. Mike Hawker’s and House Speaker’s Mike Chennault’s incredible determination to wipe the 2002 vote and mandate of 138,000 Alaskans off the record, to remove same from State Statute, and to prove that the State will expend hundreds of millions to demonstrate that LNG from Russia can be imported cheaper to south central than their pipedream. This in the face of $14/tcf-$17/tcf LNG delivered in Japan.

What is it about the all-Alaska natural gas pipeline option that causes it to never be spoken of by our Governor and by our Legislature, never considered as a viable option, never mentioned by the Press, yet, demonstrated by the market as being incredibly prescient, given that this option was voted on and passed—you know, mandated—by the vote of 138,000 Alaskans way back in 2002? The only Republican candidate to champion this option was Bill Walker with his run for Governor in 2010.

Governor Parnell has asked nicely for TransCanada and the Producers to consider the LNG option to Valdez under AGIA. TransCanada and Exxon said sure, and now, studies will be made to determine the viability of that option through December of this year, and beyond. Is that not all that Governor Frank Murkowski’s so called contract achieved? A promise to “study”?

In the meantime, prices in Japan are $14/tcf-$17/tcf for LNG delivered to Japan. The cost of Alaska LNG delivered to Japan estimated by the Wood-Mac report for AGPA was $8.50/tcf. The proposed all-Alaska natural gas pipeline to Valdez championed by Bill Walker’s run for governor in 2010 called for a 3bcf per day pipeline from the North Slope to Valdez with 250mcf being taken off at Glennallen and delivered by a spur line to the Enstar Hub at Palmer. That left 2.75bcf per day for delivery to world markets. Under Walker’s proposal, the gas liquids would have been retained in Alaska for use to build a petrochemical industry and to provide alternative fuels for the Bush.

Every day, the governor has his head up his posterior, the Legislature is entranced by Hawker’s and Chennault’s Pied Piper routine, the State denies itself $15,125,000 at a sale price of $14/tcf delivered. Over the course of a year that is $5.52billion. Kiss another $5.52B good-bye by December 31 of this year.

The oil companies down south are moving, developing, and continuing to explore based upon $2.02/tcf of methane. Methane that may be exported, which will compete with Alaska gas and may even displace our gas in Asian markets, given our governor’s and our Legislature’s inability to see the handwriting on the proverbial wall.

Japan is shutting down its nukes, and Alaska has a market for our natural gas, if we want it. Two delegations from Japan have come to talk with the State, the first rebuffed by our Governor just after the 2011 earthquake.

Our DNR Commissioner met with the most recent Japanese delegation, our Lt. Gov. had dinner with them, but . . . nothing. Our DNR Commissioner goes to the PRC to investigate the LNG market, but not to Japan. After 41+ years of trade in LNG to Japan, Alaska is unwilling to discuss the potential with the Japanese.

Unlike our governor and his administration, Senator Lisa Murkowski is trying to do just that with her recent meetings with the Japanese Prime Minister and members of the Japanese Diet. Murkowski is trying to sell Japan on Alaska LNG, but is wasting her time in the face of a hostile Parnell Administration.

What's wrong with this picture, Alaska?

The Legislature with CB9 and CS9 have told the people to stick it with our 2002 vote, that our vote meant nothing. We have been proven right in the market, but our State leaders have shown their contempt for our will by completely ignoring what we mandated.

This governor and our Legislature have ignored us, when we were right all along.

Yet, now, Governor Sean Parnell extols that Alaska is closer than ever before to getting a pipeline??!!!!