A new special session begins today in Juneau, the first having expired a few days ago (special sessions can only last 30 days). The new one is charged with consideration of Gov. Sarah Palin’s “short-term” energy plan, which involves a lump-sum payment to citizens and repeal of the state’s fuel tax. Legislators will also continue their deliberation over the proposed state pipeline license for TransCanada Corp.

July 8, 2008
Gas “offtake” concerns: Enough gas in Prudhoe Bay to support pipeline?

Legislators are meeting in Ketchikan today in the last of the “roadshow” presentations on the TransCanada proposal. They reconvene in Juneau Wednesday, July 9, to begin what they hope will be a final series of briefings before a final vote.  Meanwhile, we offer a series of background briefs on issues legislators are concerned with.

AOGCC, an independent regulatory agency, makes the call on how much gas can be produced

The question of how much gas Prudhoe Bay can sustain without unacceptable oil losses will be decided by the AOGCC, and a decision will have to be made by 2010 so that a pipeline developer ¬ TransCanada or the Denali pipeline group – can hold an open season. If a gas pipeline were being completed today there is no doubt that considerable volumes of oil would be lost to production, and state law would prohibit the AOGCC from allowing a situation like this. However, the thinking is that as the years go by more of the Prudhoe Bay oil reserves will be depleted.

Governor’s spur line initiative is shrewd politics, but with some beneficial results

Don’t take Gov. Sarah Palin’s announcement of a new initiative to “jump-start” the spur pipeline from Southcentral as an indication that something will actually happen. There are some dicey, unanswered questions, such as whether there is enough gas available from Cook Inlet to ship north through the pipeline given the declining production in gas fields in the region. The governor’s plan is to build the pipeline to Fairbanks by 2013 and supply Cook Inlet gas to Interior Alaska until a North Slope pipeline is built in 2018 or 2020.