TransCanada Corp. and ExxonMobil joined forces to host the Alaskan Natural Gas Project. The Alaska Pipeline will stretch approximately 1,700 miles (2,737 km) from the North Slope of Alaska through the Yukon, and northeastern British Columbia to the B.C./Alberta border near Boundary Lake. The proposed pipeline will also be integrated into the new and existing natural gas infrastructures in Alberta.
TransCanada is an American energy company based in Calgary, Alberta, and is primarily involved in the development and operation of the North American energy infrastructure. Their existing pipeline network connects virtually all major gas supply basins, encompassing 36,500 miles in North America. The company also holds the existing certificates and right-of-way for the project under the Northern Pipeline Act**. ExxonMobil has global mega-project management experience, a long history of Arctic projects, and is the largest holder of discovered Arctic North Slope (ANS) natural gas resources.
A competing project by BP and ConocoPhillips called “Denali” was formed in June 2008 to construct a pipeline to monetize Alaska’s North Slope gas resources. For those not familiar, BP and ConocoPhillips are multi-national oil companies. Denali proposes a gas treatment plant on the North Slope that will remove water, carbon dioxide (CO2) and other impurities, making the gas “pipeline ready.” The CO2 will be re-injected, reducing greenhouse gas emissions. The plant will also compress the gas and chill it to prevent thawing of permafrost near the pipeline. The gas treatment plant will be the largest of its kind in the world. Millions of tons of steel will be used to build a large diameter pipeline that will transport the gas. The pipeline will then be coated to protect it from corrosion and buried underground.
Great! I’m excited to know what the Alaskan community has to say about the issue. The following statements are only a selected few from a large database of very worthy public voices, to read more visit this link!
The secretive way this deal has been worked out between the producers and the Murkowski Administration immediately calls it into question. The natural resources of the State of Alaska belong to all the citizens, yet the legal representatives of the citizens, namely our state legislators, have been kept in the dark. It is nearly criminal that a very few elite, with questionable motives, have been the only people to have any time to peruse this deal. I strongly disagree with the proposed “contract” as it now stands; and request much more public debate and commentary. The oil producers don’t need our elected officials to worry about how large their profits will be–they have people on salary to do that for them. Thank you for the opportunity to give my views.
Almberg, Pamela Anchorage, Alaska
First of all, the people of Alaska have already voted to have an all Alaska Pipeline. The Oil companies have ripped Alaska off long enough! Stop hiding in their pocket and do what you were elected to do– represent the people of this State and not your own greedy self-aggrandizing interests.
Next, we have a legislature with a group of men and women deciding what the tax on oil should be. This does not mean that one man–you as governor–has the right to make deals behind closed doors with the Oil companies. They are showing billions in profit and you support not giving more of those profits to the State they have and will continue to strip of resources as long as they can find pawns like you to use.
And, do not think that the ordinary citizen is going to be duped by what you are doing. We elected a group of people to make decisions and pass laws, not just one person, and certainly not you.
For now, it is a shame that a past governor’s election campaign has started with let’s bring dignity back to the office of governor–but it is true. This is not Hazzard County, and you are not Boss Hogg, stop acting like him. Alaska has been my home since 1960. While I have spent some years outside, I have lived in Alaska over 30 years and have spent the past nine years teaching in the Bush. You do the same to education that you are doing to the State with the Oil–short changing the people you should be protecting! Shame on you– but it will be our turn in the fall–you will go down in history as the incumbent who received the fewest votes in history.
Absher, Carole Glenallen, Alaska
We need the state representatives to cooperate with the oil& gas industry in order to continue our growth as a state. I came up here from the lower 48 in order to work hard for the engineering of the infrastructure of the gas line and for increasing the length of production of the oil fields on the North Slope. I am glad I can contribute to the state and to my family and get Alaska what it needs for the people, by increasing funds from the current tax system.
I hope people can put their egos away and stop grandstanding on an ”all Alaskan pipeline”, as it will not work as planned. The people asking for this are not engineers, and those who have worked on LNG in Indonesia know the pipeline would require up to 6 pipelines in order to make the LNG to Valdez viable. No one on the All Alaskan Pipeline even talks about the engineering, because, they do not know anything about it.
I am glad the state has not taken it up seriously, and I am for the proposal of PPT at near 21%. I think it is a good compromise. I am for the taxes to be frozen for up to 30 years.
I am for the legislators to compromise and get us working on this mammoth job.
Thank you,
Marcus Acosta
Adams, David Michael City not supplied, Unknown
I am in support of the Alaska Gas Pipeline. Being a student and employee in the energy industry, I know it will not only benefit the United States, but most importantly Alaska. I am a college summer intern working in Anchorage and have fallen in love with this great state. I would only want to see Alaska improve as a state economically. The benefits will easily surpass the costs when the pipeline is built and running.
Agnew, Robert Clearwater, Florida
Alaska needs a gas pipeline now not 20 years from now! Politics are standing in the way of Alaska’s economic future. I just retired from the United States Air Force to make Alaska my home and build a long term future. Oil production has been a huge economic supporter of Alaska economy, but with declining oil production it will not continue. Without future gas production Alaska will see a significant reduction in these economic benefits.
Allen, Andrew Anchorage, Alaska
I’ve been a resident of south Anchorage since 1969 and spent the intervening years working in the construction and transportation industries. More to the point, I worked two years on the original oil pipeline to Valdez and several winters afterward at Prudhoe Bay. In the late 70’s I hauled equipment from Prudhoe Bay to Point Thompson and helped build the pads for the wells that were drilled there, capped and then abandoned. Point Thompson is going to be the origin of gas for any proposed gas pipeline, not Prudhoe Bay. For the most part the oil companies have been responsible stewards of the oil patch, but largely because of intense scrutiny by federal and state regulators.
I strongly support the idea of a gas pipeline, but only if it goes to Valdez. My reasoning for this is that permits are already in place for a pipeline. Building two 36 inch lines simultaneously would be faster, cheaper and safer than a single 52 inch line. The virtue of building two lines is that only one would have to be utilized until such time as a LNG plant could be built in Valdez.
Without delving into the legality of the proposed pipeline contract, my objections to it are numerous.
Beginning with the fact it was done in secret over almost a three year period and is now being rushed into enactment. If we’ve waited this long for such a tenuous contract, we can afford to wait until after the elections in November. This contract favors the oil companies, not the State of Alaska. It is incumbent upon our politicians to represent the best interests of the state and it’s people, not the bottom line of the oil companies. I guess the point I’m trying to make is that utilizing our natural resources for the benefit of Alaska should be our priority. Affordable energy is the key proponent. A pipeline to Valdez expands the markets available to us and leaves us less vulnerable to the whims of the producers. Affordable energy is what will allow Alaska to grow and compete in the world markets. And finally, affordable energy is what will allow future generations of Alaskans to find and/or create jobs that will allow them to remain in Alaska.
Alonzo, Chris Anchorage, Alaska
I think the contract should be scrapped. BP, ConocoPhillips, and Exxon-Mobil are not the best companies to build the gas pipeline especially since Exxon has not paid for all the damages caused by the Exxon Valdez oil spill. We need better partners in such an important project. Alaska needs to consider an all Alaska pipeline and bids by other companies that were rejected without full review.
Locking in the oil production tax rate for decades as an incentive to build the gas pipeline is a bad idea. In these uncertain times of global warming, wars on many horizons, and depleting oil and gas reserves, we would be doing our children and the young adults of today a disservice to lock them into a tax system that may not be appropriate for their future. Alaska can find other companies willing to build a gas pipeline without this type of concession.
Taxing the net profit instead of gross production is totally flawed. It’s too complicated. Net profit is difficult to measure, costly to audit, and subject to manipulation or gaming by the oil company accountants. The contract is full of concessions that would limit our state’s sovereignty and right to obtain relief in court. The provision to allow BP, ConocoPhillips, and Exxon-Mobil off the hook in an arbitrated dispute if they can just claim “errors in judgment” is way too loose.
The contract stipulates that Alaska receive its royalty payments in gas or oil, loosing the current flexibility we have to receive royalties in cash. The provision to freeze corporate income taxes also robs Alaska of the financial flexibility we need.
This sweetheart contract doesn’t even require that they build the gas pipeline. Its Alaska-hire provisions are inadequate. Hiring halls for pipeline work need to be in Alaska. Merely having jobs advertised in Alaska is insufficient.
The contract may be unconstitutional. The governor has authority to negotiate the contract only if Alaska gas is “stranded”. That issue is in contention.
In sum, the contract is a losing proposition for Alaska and should be discarded.
Anderson, Clayton Palmer, Alaska
**The Alaska Gas-line Inducement Act (“AGIA”) was passed into law by the State of Alaska in May 2007. Its purpose was to expedite the construction of a pipeline to transport Alaskan natural gas resources to market. AGIA offers certain incentives to gas producers and pipeline companies in exchange for specific commitments that will provide significant benefit to the State. After a competitive bid process and a thorough public and legislative review, TransCanada was selected by the State in August 2008 as the exclusive recipient of the AGIA license.
Wow. Interesting how things go unnoticed by the general public.
LoL, oh so true Tyler! Not the publics fault though..
Actually!! When I saw this project on the news, it was only a side note to an issue that the Governor, Sarah Palin, was very much passionate about: (a joke that a comedian made about her daughter)… ugh!!
While this sounds like a worthy project on the surface, I worry whether it is in the best interest of anyone but ExxonMobile executives.
The 20 to 30 year freeze on natural gas taxes should only be considered if there is a similar freeze on the selling price fof the gas , and the salaries and bonuses of the oil campany executives. other wise it just looks like a big give away. As a former alaskan(11yrs there) I know most residents are newcomers and will not stay more that a decade or 2 . In my opinion the greater part of these people are short term thinkers and just want what they can get befor they leave. The Alaska state permanent fund has billions and there is no NOW emergency for the state or its people .
Sincerly
googlybear
Carson City,Nv
Thousands of Native Alaskans lived very well in Alaska for thousands of years before there ever was a oil and gas industry.And no they were not” impoverished” as many development minded persons would have us to believe.It would be impossible for an impoverished people to live in a place like Alaska,without electricity ! Think about it !
One reason the native Alaskans,”and Natives of the lower 48” were able to thrive so succsesfully even in harsh enviroments,”without modern technology” was the fact that these people were not dependent upon capital,ie money, the way we moderns are today ! Also,the natives of this great land viewed the earth and the resources therof as being more than just natural resources,or ”commodities”to be profited from.The natives viewed the earth as their home and the natural resources as ”gifts ”from nature which ultimately belonged to everyone because of the fact that nature had provided those resources to everyone freely.I can not stress enough the point that the natives sought to both live along side, and with their natural world.They unlike us, did not view the land and the resources of the land as a means to an end ! We moderns view the entire planet,”and each other”as merly the means to profit,when in reality our natural world is in fact all the profit we need ! Now of course with so few people ”owning” so much of our planet,and with so much of our natural world having been already destroyed,”unnessacarly” it is likely that the vicous cycles of development,waste,destruction,excess for a few and want for the majority will have to be continued,untill finally the entire system crashes for one last time. That crash will come,probably not for the wealthy few,but for the masses,because of the fact that to the wealthy elite the masses exist ”,like the natural world”only as the means to the end of their private wealth and wellbeing.