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?