Report: Alaska pipeline not in long-range projects

[RamboLiberal]

Source: Washington Post

JUNEAU, Alaska -- Federal analysts believe it will not be economical to build a major natural gas pipeline in Alaska for at least the next 20 years, according to a recent report by the U.S. Energy Information Administration.

The study looks at domestic energy markets through 2035 and cites higher construction costs and lower natural gas wellhead prices, in 2009 terms, as making a line uneconomical during that timeframe. The report represents what agency analyst Joe Benneche calls its "best guess at what a likely outcome is."

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Benneche said Wednesday that projections call for the average wellhead price in the Lower 48 to improve to the point where a project would make financial sense around 2033. Following construction, a line could be in service by 2036 or 2037, he said.

"It's not like we took it out" of the total energy picture, Benneche said.

For years, Alaskans have hoped for a pipeline as a way to help shore up revenues from declining oil production, create jobs and provide a more reliable source of energy. Gov. Sean Parnell has expressed optimism for a line's prospects, given that TransCanada and Denali are each now negotiating with gas producers, seeking to secure shipping commitments.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2010/12/22/AR2010122203579.html

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Is this the pipeline that Palin bragged about during 2008 campaign?

[tammywammy]

1. Yes, that's the same pipeline Palin was bragging about. n/t

[ladywnch]

3. yeah, the same pipeline deal that she negotiated

that has the Fed on the hook for some serious money if it fails to be built. I don't remember the details, but I do remember that TransCanada and Denali had some clause put in (evidently they knew enough to not trust Palin for shit) that they get a payout if the pipeline doesn't get done.....and the State pushed it off to the Fed.

This news will not get covered but it should be.

[Drale]

2. Good that means that it will never get done

because we will be out of oil and forced to use a different form of energy in 20 years.

[Lord Magus]

4. This pipeline was supposed to be for natural gas, not oil.

And we're nowhere near running out of natural gas.

[RamboLiberal]

5. With the Marcellus Shale could be quite awhile before that pipeline

would be profitable to build.

[Bandit]

6. The State of Alaska (Republicans) have already paid Exxon and BP over $500 million

just for their planning on this. It doesn't even guarantee they will ever build the damn thing.. A half a billion dollars handed out with no restrictions and no guarantees.. A parting gift from Governor Murkowski....