Alaska Gov. Sean Parnell and a group of gas producers have reached an agreement to begin commercializing North Slope natural gas resources within the Alaska Gasline Inducement Act.
The dispute erupted seven years ago when the state began pulling leases it believed energy companies held for too long without developing. The Thomson Point leases are seen as critical to the fortunes of a gas pipeline, long-sought by Alaskans as a way to shore up revenues amid declining oil production, create jobs, and provide a reliable source of energy. The agreement, announced on Friday, clears the way for progress on the pipeline project.
Four companies, ExxonMobil, ConocoPhillips, BP PLC and TransCanada Pipeline, will work together on the large-scale liquefied natural gas project, capable of overseas exports, as an alternative to a pipeline through Alberta, Canada, that would serve North America.
“Commercializing Alaska natural gas resources will not be easy. There are many challenges and issues that must be resolved, and we cannot do it alone,” CEOs of ExxonMobil, ConocoPhillips and BP wrote in a joint letter to Alaska Governor Sean Parnell. “Unprecedented commitments of capital for gas development require competitive and stable fiscal terms with the State of Alaska first be established.”
The inducement act was passed under former Gov. Sarah Palin as a way to jumpstart a pipeline. At the time, BP and ConocoPhillips had intended to ship gas through Alberta to the Lower 48, but recent shale gas discoveries gave rise to concerns that there could be little demand for Alaska gas in the continental U.S.
In October, Parnell called on Exxon Mobil, BP and ConocoPhillips to unite behind a project that allows for liquefied natural gas exports to the Pacific Rim if the gas market has truly shifted from the Lower 48.
Alaska’s North Slope holds more than 35 trillion cubic feet of discovered natural gas, and Point Thomson is a strategic investment to position Alaska gas commercialization.
Printer Friendly Version
Email This Story
Fuel and Oil: Related News
4/2/2012 – Alaska, Producers Reach Agreement on Point Thomson Natural Gas
Alaska Gov. Sean Parnell and a group of gas producers have reached an agreement to begin commercializing North Slope natural gas resources within the Alaska Gasline Inducement Act. …
3/29/2012 – Irving Oil Offers First DEF Pump in Northern New England
Irving Oil‘s travel plaza in Kittery, Maine is now equipped with a diesel exhaust fluid pump, making it the most northern DEF pump dispenser in New England….
3/28/2012 – Diesel Sees Slight Increase, Oil Ends Modestly Higher
Average diesel prices went up just a hair this week, according to the Energy Information Administration’s weekly fuel update. The half-cent increase took the average price to $4.147 per gallon….
3/22/2012 – January-February Biodiesel Volume Slips from Late 2011 Growth
The U.S. biodiesel industry produced 135 million gallons of fuel in the first two months of 2012, according to new numbers released by the EPA Wednesday….
3/20/2012 – Diesel Reaches Highest Price Since Summer 2008
The average diesel price spiked 1.9 cents this week to $4.142 a gallon, its highest price since the summer of 2008, according to the Energy Information Administration’s weekly fuel update….
3/16/2012 – U.S. Fuel Exports to Double by 2015
U.S. exports of gasoline, diesel and other fuels will more than double in the next three years as refiners take advantage of a growing supply of domestic crudes and ship more fuel to emerging markets, according to UK research firm Wood Mackenzie….
3/14/2012 – Louisiana Plant Turns Animal Fat Into Fuel
A high-fat diet might not be good for humans, but it could be great for trucks, trains, planes and cars. …
3/13/2012 – White House Report Shows Drop in Oil Imports
The White House released a one-year American energy progress report showing that the U.S. has reduced dependence on foreign oil by more than 2 million barrels per day. …
3/13/2012 – Fuel Prices Rise Yet Again, Oil Prices Fall
The national average price for diesel is up yet again this week by almost 3 cents, from $4.094 to $4.123 per gallon, according to the Energy Information Administration’s weekly fuel update. This is the seventh week in a row that prices have risen. …
3/12/2012 – Diesel Exhaust Found to be ‘Negligible’ Contributor to One Type of Pollution
Contrary to what the scientific community expected, the exhaust fumes from gasoline vehicles are a bigger polluter than diesel exhaust when it comes to a specific type of pollution, according to a new study….
3/8/2012 – PeopleNet, Vusion Offer Fuel Theft Detection
PeopleNet is getting ready to offer a fuel-theft detection solution with the help of sister company, data analytics provider Vusion….
3/8/2012 – GE, Chesapeake to Collaborate to Speed Adoption of Natural Gas
GE and Chesapeake Energy Corp. announced they will collaborate to accelerate the adoption of natural gas as a transportation fuel….
3/7/2012 – EIA: Crude Price to Average $11 Higher Than Last Year
In its Short-Term Energy Outlook, the U.S. Energy Information Administration says it expects the price of West Texas Intermediate crude oil to average about $106 per barrel in 2012, $5 per barrel higher than in its previous outlook and $11 per barrel higher than the average price last year….
3/7/2012 – DEF Prices Increase for Bulk Deliveries
Diesel exhaust fluid prices for tote refills and other bulk deliveries increased between January and February 2011, as suppliers reacted to increasing raw material costs, reports DEF Tracker….
3/6/2012 – U.S. Diesel at Highest Price in More Than a Year
Diesel is up again this week with a 4-cent increase to $4.094 per gallon from $4.051 per gallon, according to the Energy Information Administration’s gas and diesel fuel update….
3/1/2012 – CARB Highlights Innovations in Clean Diesel Technology
Diesel industry and California Air Resources Board officials held a press conference to highlight the key policies and events that led to the transformation of clean diesel technology over the past two-plus decades….
2/24/2012 – EPA Certifies Daimler’s Vehicle Lineup as GHG14 Compliant
The Environmental Protection Agency has certified Daimler Trucks North America‘s complete portfolio of model year 2013 on-highway, vocational and medium-duty vehicles as fully compliant with the new greenhouse gas 2014 regulations. …
2/23/2012 – Pilot Flying J To Acquire Western Petroleum
Pilot Flying J will acquire Western Petroleum, which has operations largely targeted toward the Rocky Mountain states, the southern states and the northern plains….
2/22/2012 – 3M, Chesapeake Energy Partner to Create CNG Tank Technology
3M and Chesapeake Energy Corp. will collaborate in designing, manufacturing and marketing a broad portfolio of compressed natural gas tanks for use in all sectors of the U.S. transportation market, starting with commercial vehicles….
2/22/2012 – Diesel and Gas Prices Rise, Worries About Greece and Iran Drive up Oil Prices
The average U.S. diesel price is up by 1.7 cents this week to an 11-week high of $3.96 per gallon from $3.943 last week, reports the U.S. Energy Information Administration in its weekly fuel update, and crude oil prices are the highest in in nine months….
2/17/2012 – Love’s Travel Stop Opens in Seguin, Texas
Love’s Travel Stops opened its first new travel stop of 2012 in Seguin, Texas, at Interstate 10, Exit 604….
2/17/2012 – Central Freight Lines To Test Peterbilt CNG Tractors
Central Freight Lines, a less-than-truckload for-hire common carrier, will test 15 new compressed natural gas tractors under a grant from the Houston-Galveston Area Council….