Conoco Phillips

Can proposed North Slope gas pipeline take on competition?

Sep. 16, 2009
in
The proposed North Slope gas pipeline hit another bump yesterday when a Calgary-based global energy consultant counted down multiple obstacles hindering the success of the project, reports Elizabeth Bluemink of the Anchorage Daily News.
One of the prime concerns was competition between the proposed pipeline, which is planned to run from Alaska through Canada to the lower United States, and cheaper gas found at basins in the lower 48 near metropolitan areas. The consultant said tight control of costs associated with the pipeline project would be the only way to stay in the competition.
The project is being pursued by two separate business groups with holdings in on the North Slope. BP and Conoco Phillips have partnered in promoting the Denali Gas Pipeline, while TransCanada and ExxonMobil are developing plans for their own Alaska Pipeline Project. Vice President Tony Palmer of TransCanada hopes the two projects eventually will merge, according to the article.
Gas prices are down right now, which means even some drills in the Lower 48 have temporarily stopped. The corporations involved in the project are optimistic. They expect natural gas prices will rise in 2010, making the North Slope project competitive again.
InvestigateWest reported earlier on the proposed Alaska pipeline here.
-- Emily Linroth

North Slope drilling continues, affects birds

Sep. 10, 2009
in

ExxonMobil completed drilling its second well on Alaska's North Slope, reports the Associated Press. Both wells in Point Thomson, a natural gas and condensatefield, are expected to be drilled to their final depths by the end of 2010. The field contains an estimated 8 trillion cubic feet of natural gas, which is only 25 percent of the North Slope's resources. ExxonMobil plans to cycle gas by injecting it back into the reservoir, making it the largest gas cycling plant worldwide. It also plans to connect a pipeline to the TransAlaska Pipeline System.

The gas in Point Thomson is crucial for the development of a proposed multi-billion dollar pipelinethrough Canada and into the lower 48 states. ExxonMobil is backing TransCanada Corp. in the creation of the pipeline, and BP and Conoco Phillips are working on their own pipeline project, called Denali, according to the Anchorage Daily News.

Development of the North Slope has spawned controversy for years about the cost of the pipeline necessary to get the gas out, as well as environmental impacts. A recent study shows the massive project has had a negative impact on birds who nest in the area, reportsAndrew C. Revkin in the New York Times.

– Emily Linroth

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