Our new old Governor Sean Parnell is slowly steaming ahead with his agenda. I would have never given him credit for this, but . . . Gov. Parnell and the Legislature have come up with a pretty clever way to cut local government and the population of the State of Alaska by about 50% almost immediately! This plan is insidious in its brilliance.
Gov. Parnell’s economic plans should have included –by now—news of TransCanada and Exxon’s plans for a pipeline. Yet, all we hear from industry and other sources is that there will be no pipeline to Canada or to the U.S. for at least 20 years—per Larry Persily, the federal pipeline coordinator. Nor, will any LNG be sent to the U.S. from Alaska. It is just too cheap to ship all of that natural gas Exxon and Conoco converted in their LNG trains in Qattar 15,000 miles to the U.S. by LNG tanker, off load the LNG tanker, recondition the LNG, load it back onto the LNG tanker . . . and export it to Asia another 10,000 miles—and, still make a profit.
Yes, I remember Ralph Samuels sagely opining that it was just too expensive to ship North Slope gas 800 miles to Valdez by pipeline, convert it to LNG, and then ship it to a foreign market. Man, am I glad that we did not make that mistake! We would be just like all rest of those fools shipping LNG all over the world and making far more than the domestic price! Wow. We almost blew it, big time!
What would we do with all of those LNG tankers coming into Valdez to move 3 billion cubic feet of gas a day to market?! Not to mention that the gas liquids would have stayed in Alaska for fuels and industry, thereby creating more jobs. And, why would we build the 250 million cubic feet per day spur line from Glennallen to the Enstar Hub at Palmer to relieve the gas shortages in the Kenai/Cook Inlet gas fields? What would the pols have to commiserate over?! We did not need those jobs, either! Thank you Ralph and Sean!
Alaska did not need all of the jobs and businesses that would have been created by building the natural gas pipeline to Valdez. Remember, 138,000 Alaskans voted to build that pipeline. Just foolishness! Why, we don’t need to worry! We can all work for the State! Right, Gov?
After all, Conoco let the cat out of the bag just before the elections. The intent was to warehouse North Slope gas for at least another 20 years. Yet, Conoco is still going forward with Denali . . . ? Uh . . . some things are better left alone, I guess, otherwise it hurts your head trying to follow the logic.
Oh, you folks that opposed building the all-Alaska natural gas pipeline and shipping our gas to Asia markets were so sage. . . .
What was it Larry Persily opined? No pipeline for 20 years?
I guess that we are just supposed to forget that we have a gas shortage that will result in brown outs and a loss of heat and power for up to two years in south central if a compressor fails in the Kenai fields. What fun that promises!
Just think, over 300,000 Alaskans without heat and power during the coldest part of the winter, maybe two winters. And, most of them . . . armed. Uh, oh.
If that is a means to get property values down, that will do it, alright.
I guess we should also forget that during this last election, it was revealed that TAPS will reach a critical juncture much sooner than expected. The point at which TAPS cannot be restarted due to a shutdown is now much closer.
We were all fat dumb and happy thinking that TAPS would continue to transport oil down to 300,000 barrels per day production. Oh, no. This has been revised to 500,000 barrels per day. Meaning, that within the coming four years, we may see an end to TAPS moving our oil once production reaches 500,000 bpd or less, and there is a shutdown of the pipeline for any reason. With that shutdown ends 90% of the State’s revenue.
Do you think there will be an income tax, not to mention a State sales tax and, maybe even a State property tax proposed over the next two Legislative sessions?
Wait a minute.
We have the Permanent Fund! Let’s see, that’s about $35B or so. At a yearly budget of $11B growing by at least 10% per year, we can hold out for . . . 3 years? Then what? Don’t think about it, our legislators and governor aren’t, so why should we?
How long will the PFDs last? Anyone want to make a bet past 2013?
The only “pipeline plan” being discussed publically is the idea of building a 36 inch or 48 inch natural gas pipeline from the North Slope to Fairbanks. After that . . . who knows? Indecision reigns supreme. Gone is any mention of the “bullet line” from Fairbanks to Anchorage. Avoided like the black plague is any mention of the all-Alaska natural gas pipeline to Valdez. Now, all we hear is that importing natural gas to Cook Inlet is inevitable.
In Canada, poly pipelines are being installed year round for gas distribution to market. You see it all over the west. Just awesome their expansion and aggressive development of their NG resources. The Canadian government just approved the MacKenzie River Delta 1.5 bcf natural gas pipeline project. In the mean time, the success of the LNG export facility at Kittimat, B.C. is no longer doubted by any here or there.
The MacKenzie River Delta pipeline is going ahead, the national energy board in Ottawa said it needs to be done, all the aboriginal malarkey is settled, and it is and will always be . . . Canada first. That project will pretty much see an end to the hot air expounded over any idea of moving our gas to Canada. We won’t be able to give our gas away if this dodo bird attitude on the part of those in Juneau continues regarding LNG exports and instate use of the gas liquids.
Yet, in Alaska . . . well, the sage heads in the Legislature and the Governor’s office have decided that in about 5 years or so the Grinch is going to visit all of us, if not before. “Before” may be a compressor failure on the Kenai, or the inability to restart TAPS after a maintenance or leak shut down. Then what? The silence has been deafening.
The Alaska Legislature and our governors have been very successful in ignoring the obvious. We have to trust them to keep doing just that. After all, a little misery and cold never hurt anyone. Right? Just suck it up and keep moving, soldier.
Enjoy heat and lights while we have ‘em!
And, then, when we all get cold enough and angry enough, let’s enjoy tar and feathering the legislators and the governors who served from 2002 forward who ignored our will. There will still be diesel to heat the tar.
Sarah looks good in black, too.
Just before we do Parnell, we should give him an award for the success of his brilliant plan. After we finish tar and feathering him, we will send him to Washington to advise President Obama on resource development, cutting government, and population control.
Showing posts with label gas pipeline. Show all posts
Showing posts with label gas pipeline. Show all posts
Sunday, December 26, 2010
Sunday, June 6, 2010
FERC Misinformation
A recent decision by the Federal Energy Regulatory Commission (FERC) has provided the grist for the political mill of those opposing the all-Alaska natural gas pipeline and Bill Walker’s candidacy for governor. However, this is a case of the disinformationistas being aided by the silence of the lamb (Parnell), rather than it being the death knell to anyone’s campaign.
FERC recently declined to renew an application by Yukon Pacific Corporation for an LNG export train at Anderson Bay. This decision has been declared a death knell to Walker’s campaign by Walker’s detractors. Walker’s pipeline advocacy is in support of the all-Alaska natural gas pipeline to Valdez. The decision has been heralded as barring any export of Alaska gas, thereby ending both Walker’s candidacy and the Valdez pipeline option. Nothing could be farther from the truth.
The silence being on the part of the Parnell Administration in keeping quiet an inquiry of Jan. 28, 2010 from Pipeline Coodinator Bob Swenson made to FERC as reported in the Oil and Gas Journal in an editorial dated March 22, 2010.
Cheniere, Inc. is converting its Sabine Pass, TX LNG import facility to receive foreign LNG and to loop it back for export to Asian markets. Cheniere cites a 42% drop in LNG imports between 2007 and 2008 into the U.S. because of increased domestic supplies. This market trend results from increased supplies of natural gas in the domestic U.S. market from shale gas and other unconventional sources.
Cheniere has also applied for permits to export U.S. domestic produced natural gas to global markets. This would be only the second facility in the U.S. built to export domestically produced LNG to foreign markets. The first such facility was built at Nikkiski, Alaska and has been exporting LNG to Japan since 1969.
In his Jan. 28, 2010 inquiry to FERC, Gov. Sean Parnell’s pipeline coordinator Bob Swenson described 3 scenarios and requested to know if FERC would have regulatory oversight.
Scenario 1 was an in-state pipeline with North Slope gas being used in-state only. FERC’s response was that FERC would have no regulatory oversight authority for such use.
Scenario 2 was an in-state pipeline with North Slope gas being used in-state with some of the gas being exported to domestic U.S. markets. FERC”s response was that FERC would regulatory authority over domestic export to the U.S. market.
Scenario 3 was an in-state pipeline with North Slope gas being used in-state with some of the gas being exported to foreign markets. FERC’s response was that FERC would not have regulatory authority over North Slope gas exported to a foreign market.
FERC does not have regulatory oversight over North Slope natural gas exported to foreign markets. Therefore, the issue of FERC’s denial of Yukon Pacific’s permit to export North Slope gas from Valdez to the U.S. domestic market has no bearing whatsoever on Walker’s Valdez pipeline project.
Parnell knows that Walker’s Valdez pipeline plan is viable and economically sound. Cheniere, Inc.’s filing for an export permit to export domestically produced LNG to global markets further supports Walker’s contention that Alaska should export its natural gas to a global market rather than to an oversupplied U.S. market.
Rival Ralph Samuels has also lauded the FERC decision regarding the YPC permit as supporting his position that Walker’s plan is not viable. Obviously, in light of the response by FERC to the Parnell Administration’s inquiry, Samuels is wrong in his position. Samuels knows full well that FERC has domestic market oversight, not foreign, and that Walker’s plan is to export natural gas to Asia.
On the one hand, Parnell acts to withhold information, on the other, Samuels acts, as have others, to promote half truths.
The positions of the various candidates on the issues regarding the pipelines and the looming economic disaster facing the State would be illuminated at public forums where they would debate on the issues. Unfortunately, Gov. Sean Parnell has decided that he does not want to participate in any more debates until just before the Primary Election in August. He was put on the spot by Walker at the Kodiak Crab Festival on May 29th.
Walker asked Parnell about the $20,000,000,000 give-a-way that his refusal to sign SB 305 separating natural gas taxes from oil taxes will cost the State. This give-a-way amounts to a State subsidy for the Canadian route construction of AGIA or Denali. Both benefit from Parnell’s action. Apparently, Parnell chose to waffle and make polite noises rather than answer a direct question.
It appears that Walker’s growing support is making Parnell and Samuels a bit nervous in the service as it were.
FERC recently declined to renew an application by Yukon Pacific Corporation for an LNG export train at Anderson Bay. This decision has been declared a death knell to Walker’s campaign by Walker’s detractors. Walker’s pipeline advocacy is in support of the all-Alaska natural gas pipeline to Valdez. The decision has been heralded as barring any export of Alaska gas, thereby ending both Walker’s candidacy and the Valdez pipeline option. Nothing could be farther from the truth.
The silence being on the part of the Parnell Administration in keeping quiet an inquiry of Jan. 28, 2010 from Pipeline Coodinator Bob Swenson made to FERC as reported in the Oil and Gas Journal in an editorial dated March 22, 2010.
Cheniere, Inc. is converting its Sabine Pass, TX LNG import facility to receive foreign LNG and to loop it back for export to Asian markets. Cheniere cites a 42% drop in LNG imports between 2007 and 2008 into the U.S. because of increased domestic supplies. This market trend results from increased supplies of natural gas in the domestic U.S. market from shale gas and other unconventional sources.
Cheniere has also applied for permits to export U.S. domestic produced natural gas to global markets. This would be only the second facility in the U.S. built to export domestically produced LNG to foreign markets. The first such facility was built at Nikkiski, Alaska and has been exporting LNG to Japan since 1969.
In his Jan. 28, 2010 inquiry to FERC, Gov. Sean Parnell’s pipeline coordinator Bob Swenson described 3 scenarios and requested to know if FERC would have regulatory oversight.
Scenario 1 was an in-state pipeline with North Slope gas being used in-state only. FERC’s response was that FERC would have no regulatory oversight authority for such use.
Scenario 2 was an in-state pipeline with North Slope gas being used in-state with some of the gas being exported to domestic U.S. markets. FERC”s response was that FERC would regulatory authority over domestic export to the U.S. market.
Scenario 3 was an in-state pipeline with North Slope gas being used in-state with some of the gas being exported to foreign markets. FERC’s response was that FERC would not have regulatory authority over North Slope gas exported to a foreign market.
FERC does not have regulatory oversight over North Slope natural gas exported to foreign markets. Therefore, the issue of FERC’s denial of Yukon Pacific’s permit to export North Slope gas from Valdez to the U.S. domestic market has no bearing whatsoever on Walker’s Valdez pipeline project.
Parnell knows that Walker’s Valdez pipeline plan is viable and economically sound. Cheniere, Inc.’s filing for an export permit to export domestically produced LNG to global markets further supports Walker’s contention that Alaska should export its natural gas to a global market rather than to an oversupplied U.S. market.
Rival Ralph Samuels has also lauded the FERC decision regarding the YPC permit as supporting his position that Walker’s plan is not viable. Obviously, in light of the response by FERC to the Parnell Administration’s inquiry, Samuels is wrong in his position. Samuels knows full well that FERC has domestic market oversight, not foreign, and that Walker’s plan is to export natural gas to Asia.
On the one hand, Parnell acts to withhold information, on the other, Samuels acts, as have others, to promote half truths.
The positions of the various candidates on the issues regarding the pipelines and the looming economic disaster facing the State would be illuminated at public forums where they would debate on the issues. Unfortunately, Gov. Sean Parnell has decided that he does not want to participate in any more debates until just before the Primary Election in August. He was put on the spot by Walker at the Kodiak Crab Festival on May 29th.
Walker asked Parnell about the $20,000,000,000 give-a-way that his refusal to sign SB 305 separating natural gas taxes from oil taxes will cost the State. This give-a-way amounts to a State subsidy for the Canadian route construction of AGIA or Denali. Both benefit from Parnell’s action. Apparently, Parnell chose to waffle and make polite noises rather than answer a direct question.
It appears that Walker’s growing support is making Parnell and Samuels a bit nervous in the service as it were.
Sunday, May 9, 2010
An Alaska legend passes . . . Hickel
One of Alaska’s true political powerhouses and true Alaska spirits has passed. Walter Joseph Hickel died at the age of 90 in Anchorage hospice. He had a very full life. He is survived by his wife Ermalee Hickel, his six sons and 21 grandchildren.
Hickel was born in 1919 in Claflin, KS. His family farmed. He was the Kansas Golden Glovers champion by age 20.
Walter Hickel came to Alaska when Alaska was still a frontier in 1940. He made his fortune here, and established himself as one of Alaska’s political powerhouses. He was a great promoter of Alaska and our resources. His stance on Alaska’s sovereignty was reflected in AS 35.05.500-505.
Hickel married Jannice Cannon, his first wife in 1941. She died in 1943. They had one son.
In 1945, he married his second wife, Ermalee Strutz. They had 5 sons.
Wally Hickel became our Governor twice. His first term in office was in 1966. He defeated Bill Egan, Alaska’s first governor. In 1969 Hickel was appointed as Secretary of the Interior under President Richard Nixon. He was fired in 1970 for writing a letter protesting the President’s handling of war dissension, notably the Kent State shootings.
Hickel was diligent at his job as Interior Secretary. He set high standards for the oil companies after an oil rig accident off the coast of California. He was also an advocate for the Everglades.
Hickel was a strong advocate for export of Alaska resources to Japan and Asia.
Hickel was again elected as governor under the Alaskan Independence Party in 1990. He pursued the injustices of the federal government in their dealings with Alaska resource development and lands issues in the federal courts. Unfortunately, his successor, Tony Knowles dropped the lawsuit with prejudice, leaving future governors no recourse.
Hickel supported Sarah Palin, until she dropped the all-Alaska pipeline project to Valdez in favor of AGIA. He became a vocal opponent of her resource development policies and her distractions.
He publically supported gubernatorial candidate Bill Walker in the 2010 campaign.
An as yet to be scheduled funeral mass will be celebrated in Anchorage.
Hickel was born in 1919 in Claflin, KS. His family farmed. He was the Kansas Golden Glovers champion by age 20.
Walter Hickel came to Alaska when Alaska was still a frontier in 1940. He made his fortune here, and established himself as one of Alaska’s political powerhouses. He was a great promoter of Alaska and our resources. His stance on Alaska’s sovereignty was reflected in AS 35.05.500-505.
Hickel married Jannice Cannon, his first wife in 1941. She died in 1943. They had one son.
In 1945, he married his second wife, Ermalee Strutz. They had 5 sons.
Wally Hickel became our Governor twice. His first term in office was in 1966. He defeated Bill Egan, Alaska’s first governor. In 1969 Hickel was appointed as Secretary of the Interior under President Richard Nixon. He was fired in 1970 for writing a letter protesting the President’s handling of war dissension, notably the Kent State shootings.
Hickel was diligent at his job as Interior Secretary. He set high standards for the oil companies after an oil rig accident off the coast of California. He was also an advocate for the Everglades.
Hickel was a strong advocate for export of Alaska resources to Japan and Asia.
Hickel was again elected as governor under the Alaskan Independence Party in 1990. He pursued the injustices of the federal government in their dealings with Alaska resource development and lands issues in the federal courts. Unfortunately, his successor, Tony Knowles dropped the lawsuit with prejudice, leaving future governors no recourse.
Hickel supported Sarah Palin, until she dropped the all-Alaska pipeline project to Valdez in favor of AGIA. He became a vocal opponent of her resource development policies and her distractions.
He publically supported gubernatorial candidate Bill Walker in the 2010 campaign.
An as yet to be scheduled funeral mass will be celebrated in Anchorage.
My father was a State Police officer. In 1959, he was sent to investigate the newly formed company to bring Cook Inlet and Kenai Penninsula gas deposits to market in south central. Walter J. Hickel was the man my father spoke with. My father asked about stock in the company, who could purchase, etc. Hickel smiled at him and told him suscinctly that my father could not afford the stock. You see, a State cop at the time made about $450/mo.
It was Cook Inlet gas supplying Ft. Richardson and Elmendorf in 1965 that shut down Evan Jones Coal Mine in Sutton. The coal mine provided the coal that previously had fueled the power plant and heating system for the bases. Over 60 families in the Mat-Su valley lost their livelihoods. Working at the coal mine was one of the good jobs--year round, non government, good money for the time.
Hickel pushed our timber to the Japanese during his first term in 1966, who bought Alaska timber in the round initially, started a timber industry in southeastern that grew until the feds shut down Tongass.
Hickel had a vision of Alaska that I did not necessarily agree with, but he was right. The "owner state" concept reeked of socialism to me and was distasteful. However, I did agree wholeheartedly with his exceptional and in your face protection of Alaska's sovereignty in opposition to the increasing federal encroachment.
I wish Hickel had lived to see the all-Alaska pipeline built. And, I wish Sarah Palin had been the governor that we and Hickel had hoped that she would be.
Oh, well. Life is a bitch and then you die.
Thursday, January 21, 2010
Walker Responds to Parnell's State of State Address
Follows is Bill Walker, Republican Candidat for governor's response to the Gov's State of the State address. Parnell's address can be viewed at :
http://www.examiner.com/x-2968-Alaska-Gubernatorial-Examiner~y2010m1d21-Gov-Parnells-State-of-the-Union-Address
FOR IMMEDIATE RELEASE
BILL WALKER RESPONDS TO STATE OF THE STATE ADDRESS
January 20, 2010
Today Bill Walker released the following statement regarding Governor Parnell’s state of the state address.
“With his support of AGIA, Governor Parnell continues to ignore the economic realities of a changing world. While he recognizes that bringing Alaska gas to market is the biggest opportunity ahead of Alaska, he has committed to stay the course in a process that everyone knows will fail.
As an Alaskan, I am deeply troubled by the Governor’s willingness to place our fragile future in the hands of outside interests and foreign governments. If the State does not take control of the process and construct an all-Alaska pipeline to Valdez there will not be a gas pipeline.
The Governor’s “permit and they will come approach” has repeatedly failed to secure an Alaska natural gas pipeline. Both TransCanada predecessors in the 1980’s for a line through Canada, and the Yukon Pacific Corporation in the 1990’s for an All-Alaska project, expended hundred of millions of dollars securing final regulatory approvals hoping to attract producer participation with that strategy. It failed then and will fail now.
Further, since AGIA passed, the U. S. Department of Energy has estimated that the United States has sufficient gas for the next 100 plus years due to recent proven shale gas reserves. Yet the Governor continues to tell the people of Alaska that there is demand for our gas in the lower-48, even going as far as to suggest we will soon become American’s next great ‘gas province.’ Let me be clear – his misrepresentation of the facts about shale gas is beyond out of touch, it is out of line.
Planned gas import terminals in western Canada have reversed course and are now being developed as gas export terminals (Kitimat, B.C.). Billions are being spent to ramp up production all across North America in the newest energy gold rush, and Exxon Mobil has even acquired the second largest shale gas company for $41 billion. Companies, states and countries have reacted around the globe, yet we continue to pursue the AGIA process knowing it charts a course into Canada that leads nowhere.
As governor I will keep Alaska’s jobs, gas and future within Alaska, develop a pipeline on our timeline and under our control, and will sell Alaska gas to world markets. Our Gas, Our jobs, Our Future.”
http://www.examiner.com/x-2968-Alaska-Gubernatorial-Examiner~y2010m1d21-Gov-Parnells-State-of-the-Union-Address
FOR IMMEDIATE RELEASE
BILL WALKER RESPONDS TO STATE OF THE STATE ADDRESS
January 20, 2010
Today Bill Walker released the following statement regarding Governor Parnell’s state of the state address.
“With his support of AGIA, Governor Parnell continues to ignore the economic realities of a changing world. While he recognizes that bringing Alaska gas to market is the biggest opportunity ahead of Alaska, he has committed to stay the course in a process that everyone knows will fail.
As an Alaskan, I am deeply troubled by the Governor’s willingness to place our fragile future in the hands of outside interests and foreign governments. If the State does not take control of the process and construct an all-Alaska pipeline to Valdez there will not be a gas pipeline.
The Governor’s “permit and they will come approach” has repeatedly failed to secure an Alaska natural gas pipeline. Both TransCanada predecessors in the 1980’s for a line through Canada, and the Yukon Pacific Corporation in the 1990’s for an All-Alaska project, expended hundred of millions of dollars securing final regulatory approvals hoping to attract producer participation with that strategy. It failed then and will fail now.
Further, since AGIA passed, the U. S. Department of Energy has estimated that the United States has sufficient gas for the next 100 plus years due to recent proven shale gas reserves. Yet the Governor continues to tell the people of Alaska that there is demand for our gas in the lower-48, even going as far as to suggest we will soon become American’s next great ‘gas province.’ Let me be clear – his misrepresentation of the facts about shale gas is beyond out of touch, it is out of line.
Planned gas import terminals in western Canada have reversed course and are now being developed as gas export terminals (Kitimat, B.C.). Billions are being spent to ramp up production all across North America in the newest energy gold rush, and Exxon Mobil has even acquired the second largest shale gas company for $41 billion. Companies, states and countries have reacted around the globe, yet we continue to pursue the AGIA process knowing it charts a course into Canada that leads nowhere.
As governor I will keep Alaska’s jobs, gas and future within Alaska, develop a pipeline on our timeline and under our control, and will sell Alaska gas to world markets. Our Gas, Our jobs, Our Future.”
Wednesday, February 25, 2009
Sell Alaska, Sarah!
Note: 3 Alaska Soldiers were killed in Iraq on 23 Feb. Please remember them and their families in your prayers. They did their duty for you and me.
Gov. Sarah Palin must now reimburse the State of Alaska for about $7,000 in travel for her children. The State ruled that unless the kids were along for a compelling service to the State, their cost was hers to bear.
It is disappointing that our Governor did not adhere to this policy.
Sarah Palin is an intelligent woman. However, obviously a buck is important to her. She is charging the State for anything and everything, and then claiming that she is saving the State money by staying in Wasilla.
Unfortunately, the continuing controversy is keeping Alaska’s business from being the priority.
The dems are writing checks that the rest of us are not going to be able to pay. Government at every level will be looking to the tax payer to repay the massive spending that is taking place. Pelosi et al in Congress are ready with another $450 billion in largess to the democrat demi god of socialism at any cost. Every failed program is being resurrected, government is being expanded at the greatest rate in the history of this country. Our President’s first address to Congress was met with another downturn on Wall St.
Remember, only $90 billion of $780 billion was to be spent on infrastructure improvements and maintenance.
Sen. Mark Begich whitewashed Obama’s speech, a speech that had nothing to offer in the way of a light at the end of the tunnel, other than to say that government is the end to all means. It should be noted that Sen. Begich did not consult with the Governor before he handed his wish list to Sen. Reid.
That President Barack H. Obama allowed an ideologue like Nancy Pelosi to draft his stimulus package behind closed doors to the exclusion of most of the House and the absolute exclusion of any discussion on the floor of the House demonstrates that this President does not have a plan and is letting the far left dictate direction. This bodes ill for Alaska.
Yet, Alaska could provide billions to the U.S. Treasury. Billions upon billions.
ANWR could be developed to reduce foreign oil imports and to generate revenue for Uncle Sam and Alaska.
North Slope natural gas could be brought to market in the lower-48 states or sold to foreign markets to generate revenue for the U.S. and Alaska.
Alaska’s mineral wealth could be developed to benefit the Treasury of the United States and Alaska.
Instead, the U.S. taxpayer, read you and me, will pay the bill on the most counter intuitive economic recovery plan since the Great Depression. Spending one’s way out of “broke” cannot work.
Alaska is in the unenviable place of being placed back on the shelf until the U.S. needs Alaska’s resources for whatever reason. The Trans Alaska Pipeline System was the result of an oil embargo in 1973.
What is preventing Alaska from going to work to benefit the United States Treasury and to relieve the burden of repayment of the “stimulus package” that will be borne on the backs of you and me and our children, grandchildren, great grandchildren, and great great grandchildren?
Why should we bear the burden when Alaska’s resources have the potential to carry part of that burden?
What will it take to get Alaska’s North Slope natural gas to market?
What will it take to get ANWR opened to oil and gas exploration and development?
What will it take to get Congress to amend ANILCA to allow Alaska to build a rational surface transportation infrastructure and allowAlaska to gain access to mineral and metal resources?
These are the challenges that Gov. Sarah Palin faces.
Gov. Sarah Palin and Alaska’s congressional delegation need to be selling the benefits of Alaska’s resources to the U.S. to . . . us, the taxpayers who will be bearing the burden of repayment of this socialist expansion. Not Congress. Not the President. Us. We the People.
Best Sarah Palin shed the need to justify her every action and respond to every slight. Best she gets with the program and sells Alaska. This is where she can use the recognition she accrued from the V.P. campaign to benefit Alaska and the U.S. taxpayer.
Gov. Sarah Palin must now reimburse the State of Alaska for about $7,000 in travel for her children. The State ruled that unless the kids were along for a compelling service to the State, their cost was hers to bear.
It is disappointing that our Governor did not adhere to this policy.
Sarah Palin is an intelligent woman. However, obviously a buck is important to her. She is charging the State for anything and everything, and then claiming that she is saving the State money by staying in Wasilla.
Unfortunately, the continuing controversy is keeping Alaska’s business from being the priority.
The dems are writing checks that the rest of us are not going to be able to pay. Government at every level will be looking to the tax payer to repay the massive spending that is taking place. Pelosi et al in Congress are ready with another $450 billion in largess to the democrat demi god of socialism at any cost. Every failed program is being resurrected, government is being expanded at the greatest rate in the history of this country. Our President’s first address to Congress was met with another downturn on Wall St.
Remember, only $90 billion of $780 billion was to be spent on infrastructure improvements and maintenance.
Sen. Mark Begich whitewashed Obama’s speech, a speech that had nothing to offer in the way of a light at the end of the tunnel, other than to say that government is the end to all means. It should be noted that Sen. Begich did not consult with the Governor before he handed his wish list to Sen. Reid.
That President Barack H. Obama allowed an ideologue like Nancy Pelosi to draft his stimulus package behind closed doors to the exclusion of most of the House and the absolute exclusion of any discussion on the floor of the House demonstrates that this President does not have a plan and is letting the far left dictate direction. This bodes ill for Alaska.
Yet, Alaska could provide billions to the U.S. Treasury. Billions upon billions.
ANWR could be developed to reduce foreign oil imports and to generate revenue for Uncle Sam and Alaska.
North Slope natural gas could be brought to market in the lower-48 states or sold to foreign markets to generate revenue for the U.S. and Alaska.
Alaska’s mineral wealth could be developed to benefit the Treasury of the United States and Alaska.
Instead, the U.S. taxpayer, read you and me, will pay the bill on the most counter intuitive economic recovery plan since the Great Depression. Spending one’s way out of “broke” cannot work.
Alaska is in the unenviable place of being placed back on the shelf until the U.S. needs Alaska’s resources for whatever reason. The Trans Alaska Pipeline System was the result of an oil embargo in 1973.
What is preventing Alaska from going to work to benefit the United States Treasury and to relieve the burden of repayment of the “stimulus package” that will be borne on the backs of you and me and our children, grandchildren, great grandchildren, and great great grandchildren?
Why should we bear the burden when Alaska’s resources have the potential to carry part of that burden?
What will it take to get Alaska’s North Slope natural gas to market?
What will it take to get ANWR opened to oil and gas exploration and development?
What will it take to get Congress to amend ANILCA to allow Alaska to build a rational surface transportation infrastructure and allowAlaska to gain access to mineral and metal resources?
These are the challenges that Gov. Sarah Palin faces.
Gov. Sarah Palin and Alaska’s congressional delegation need to be selling the benefits of Alaska’s resources to the U.S. to . . . us, the taxpayers who will be bearing the burden of repayment of this socialist expansion. Not Congress. Not the President. Us. We the People.
Best Sarah Palin shed the need to justify her every action and respond to every slight. Best she gets with the program and sells Alaska. This is where she can use the recognition she accrued from the V.P. campaign to benefit Alaska and the U.S. taxpayer.
Thursday, January 22, 2009
Doing it right' means Alaska will get the most out of its gas
(Background on the Alaska Natural Gas Pipeline situation. Written just prior to the 2006 election. Relevant to any Alaska Gas Pipeline discussion, the arguments against an LNG port at Valdez, Alaska to ship North Slope natural gas to the U.S. were answered here. )
The gas line route favored by Gov. Frank Murkowski and inherited from former Gov. Tony Knowles - "My Way is the Highway" - parallels the trans-Alaska oil pipeline right of way to Big Delta, and then goes east into Canada.
Murkowski's route differs from the original Knowles route in that it extends the pipeline through Canada into the United States near Chicago. This is the longest and most expensive route of any proposed thus far, some 3,500 miles with an estimated cost of $25 billion. This cost estimate has increased by $5 billion since Congress passed loan guarantees in 2004 totaling $18 billion.
Murkowski is seeking a $4 billion investment ownership by the state of Alaska. If built, the Murkowski-Knowles pipeline is to be a 48-, 52- or 54-inch pipeline with a capacity of 4.5 billion cubic feet per day and expandable to 6 bcf per day. Estimated completion date is 2016, if the producers decide the line is viable after another long five-year study.
Problems with the Murkowski-Knowles pipeline routes include: Rising cost estimates; North Slope natural gas reserves are insufficient to cover the financing cost over 30 years; steel for rolling the pipe requires a full year's world steel production quota; and new, and, as yet, untried pipe technology is also required.
The only viable alternative to the governor's Canadian pipeline is a liquefied natural gas project advocated so passionately over the years by Jeff Lowenfels. It is the same route originally permitted by Yukon Pacific Corp. The permits to build the Yukon Pacific natural gas pipeline have been in place since the mid-1980s.
In other words, if the producers would sell North Slope natural gas, construction on this line could begin almost immediately. This pipeline route parallels the existing trans-Alaska oil pipeline from Prudhoe to Valdez. Obviously, all jobs and construction generated by this route stay in Alaska.
Most importantly, this route would generate a spur line into the Matanuska Valley along the Glenn Highway or possibly down the Parks Highway. Alaskans recognized the logic and benefits of this route when we passed Proposition 3 in the 2002 election, which created the Alaska Natural Gas Development Authority.
The Yukon Pacific pipeline was designed to carry 2.2 bcf per day to a LNG plant to be constructed in Valdez. The liquefied gas was to be transported to other markets by LNG tankers. The economics for this pipeline was predicated on natural gas with a market price at or above $3 per million British thermal units (a million Btu equals approximately 1,000 cubic feet of natural gas). The current market price is still above $8 per million Btu and has recently been as high as $15 per million Btu.
ANGDA carefully assessed the original Yukon Pacific LNG project and found it both economical and feasible. ANGDA has included a spur line of 500,000 cubic feet per day into Southcentral Alaska via Palmer as part of its pipeline plans. The ANGDA pipeline could be moving gas within five years after the start of construction, including the necessary LNG plant at Valdez. The cost is estimated at $14 billion.
The Alaska Gas Port Authority is a consortium of Fairbanks, the North Slope Borough and Valdez to promote and build a natural gas pipeline using the Yukon Pacific route, but with a difference. The capacity of the pipeline that the port authority is advocating is now up to 4.5 bcf per day to match the Murkowski-Knowles pipeline. However, this increase in capacity also changes the dynamics of the original route permitting. This means that the port authority will have to acquire some new permits, and repermit others, meaning additional delays before construction would begin. The port authority also advocates and promises to build a spur line to Palmer.
Potentially, with the ANGDA or port authority pipeline proposals, Alaska gas could be flowing to market by 2012.
As noted by Pedro van Meurs in the Fairbanks Daily News Miner Jan. 30, in comparing Alaska's hydrocarbon resource development policy with that of Norway: "With the present system, wealth is slipping through the fingers of Alaskans and Norwegians hold on to it ... Norwegians are doing something right, and Alaskans are doing something wrong." Van Meurs is the Murkowski administration's chief consultant in the gas line negotiations with the major North Slope producers.
Why not an Alaska petrochemical industry stripping our gas of natural gas liquids - butane, ethane and propane - for use in Alaska to provide new industry and creating new jobs, before our natural gas leaves the state? Why do we have to keep doing it wrong and let the real wealth of using our resources to build industry in Alaska continue to slip through our fingers?
Alaskans need the opportunity, jobs and the industry our natural gas represents, not more government.
The gas line route favored by Gov. Frank Murkowski and inherited from former Gov. Tony Knowles - "My Way is the Highway" - parallels the trans-Alaska oil pipeline right of way to Big Delta, and then goes east into Canada.
Murkowski's route differs from the original Knowles route in that it extends the pipeline through Canada into the United States near Chicago. This is the longest and most expensive route of any proposed thus far, some 3,500 miles with an estimated cost of $25 billion. This cost estimate has increased by $5 billion since Congress passed loan guarantees in 2004 totaling $18 billion.
Murkowski is seeking a $4 billion investment ownership by the state of Alaska. If built, the Murkowski-Knowles pipeline is to be a 48-, 52- or 54-inch pipeline with a capacity of 4.5 billion cubic feet per day and expandable to 6 bcf per day. Estimated completion date is 2016, if the producers decide the line is viable after another long five-year study.
Problems with the Murkowski-Knowles pipeline routes include: Rising cost estimates; North Slope natural gas reserves are insufficient to cover the financing cost over 30 years; steel for rolling the pipe requires a full year's world steel production quota; and new, and, as yet, untried pipe technology is also required.
The only viable alternative to the governor's Canadian pipeline is a liquefied natural gas project advocated so passionately over the years by Jeff Lowenfels. It is the same route originally permitted by Yukon Pacific Corp. The permits to build the Yukon Pacific natural gas pipeline have been in place since the mid-1980s.
In other words, if the producers would sell North Slope natural gas, construction on this line could begin almost immediately. This pipeline route parallels the existing trans-Alaska oil pipeline from Prudhoe to Valdez. Obviously, all jobs and construction generated by this route stay in Alaska.
Most importantly, this route would generate a spur line into the Matanuska Valley along the Glenn Highway or possibly down the Parks Highway. Alaskans recognized the logic and benefits of this route when we passed Proposition 3 in the 2002 election, which created the Alaska Natural Gas Development Authority.
The Yukon Pacific pipeline was designed to carry 2.2 bcf per day to a LNG plant to be constructed in Valdez. The liquefied gas was to be transported to other markets by LNG tankers. The economics for this pipeline was predicated on natural gas with a market price at or above $3 per million British thermal units (a million Btu equals approximately 1,000 cubic feet of natural gas). The current market price is still above $8 per million Btu and has recently been as high as $15 per million Btu.
ANGDA carefully assessed the original Yukon Pacific LNG project and found it both economical and feasible. ANGDA has included a spur line of 500,000 cubic feet per day into Southcentral Alaska via Palmer as part of its pipeline plans. The ANGDA pipeline could be moving gas within five years after the start of construction, including the necessary LNG plant at Valdez. The cost is estimated at $14 billion.
The Alaska Gas Port Authority is a consortium of Fairbanks, the North Slope Borough and Valdez to promote and build a natural gas pipeline using the Yukon Pacific route, but with a difference. The capacity of the pipeline that the port authority is advocating is now up to 4.5 bcf per day to match the Murkowski-Knowles pipeline. However, this increase in capacity also changes the dynamics of the original route permitting. This means that the port authority will have to acquire some new permits, and repermit others, meaning additional delays before construction would begin. The port authority also advocates and promises to build a spur line to Palmer.
Potentially, with the ANGDA or port authority pipeline proposals, Alaska gas could be flowing to market by 2012.
As noted by Pedro van Meurs in the Fairbanks Daily News Miner Jan. 30, in comparing Alaska's hydrocarbon resource development policy with that of Norway: "With the present system, wealth is slipping through the fingers of Alaskans and Norwegians hold on to it ... Norwegians are doing something right, and Alaskans are doing something wrong." Van Meurs is the Murkowski administration's chief consultant in the gas line negotiations with the major North Slope producers.
Why not an Alaska petrochemical industry stripping our gas of natural gas liquids - butane, ethane and propane - for use in Alaska to provide new industry and creating new jobs, before our natural gas leaves the state? Why do we have to keep doing it wrong and let the real wealth of using our resources to build industry in Alaska continue to slip through our fingers?
Alaskans need the opportunity, jobs and the industry our natural gas represents, not more government.
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