Northern Gas Pipelines, (Alaska Gas Pipeline, Denali - The Alaska Gas Pipeline, Mackenzie Valley Gas Pipeline, Alaska Highway Gas Pipeline, Northern Route Gas Pipeline, Arctic Gas, LNG, GTL) is your public service, objective, unbiased 1-stop-shop for Arctic gas pipeline projects and people, informal and rich with new information, updated 30 times weekly and best Northern Oil & Gas Industry Links on the Internet. Find AAGPC, AAGSC, ANGTL, ANNGTC, ANGDA, ANS, APG, APWG, ANGTA, ANGTS, AGPPT, ANWR, ARC, CARC, CAGPL, CAGSL, FPC, FERC, GTL, IAEE, LNG, NEB, NPA, TAGS, TAPS, NARUC, IOGCC, CONSUMER ENERGY ALLIANCE, AOGA,AOGCC, RCA and more...
2009 LINKS: FERC Reports to Congress, 1, 2, 3, 4, 5, 6, 7....; USGS Arctic Gas Estimates; MMS hearings: RDC, Our NGP, AJOC, DH, ADN, KTUU; Enstar Bullet Line: Map and News Links; ANGDA; Alaska Energy Forum; Prosperity Alaska
2008 LINKS: Shell Alaska OCS Study; Mackenzie Gas Project EIS; Join the Alaska Gas Pipeline Blog Discussion; Governor Sarah Palin's AGIA Links; 2007 ACES tax bill links; Department of Revenue 2007 ACES tax documents; 2007 ACES tax Presentations; 2007 ACES tax news; Alaska Gas Pipeline Training and Jobs; Gas Pipeline and Economic Development; Andrew Halcro;Bjørn Lomborg; FERC's Natural Gas Website Links
WASHINGTON: Alaska Natural Gas Pipeline Act; History of H.R. 4; DOE Energy Bill Position, 6-02; Daschle-Bingaman Energy Bill (Alaska, Sec. 1236 & tax credit, Sec. 2503 & H.R. 4 Conferees), Tax Credit; See amendments, "Energy Policy Act of 2002"; "Alaska Natural Gas Pipeline Act of 2001 (Draft)" & Background Paper, 8-9-01;Alaska Legislature Joint Committee position; Governor's position; Governor's 10-Point Plan; Anadarko Analysis; U.S. Senate Energy Committee Testimony, 10-2-01 - text version; U.S. Senate Energy Committee Testimony, 9-14-00; Report on the Alaska Natural Gas Transportation Act of 1971, prepared by staff of the Federal Energy Regulatory Commission, 1-18-01
ALASKA: 1-23-03, Governor Frank Murkowski's State of the State Speech; 2002 DRAFT Recommendations to 2003 Legislature; '02 Alaska Legislation; Alaska Highway Natural Gas Pipeline Policy Council; Joint Legislative Gas Pipeline Committee; 9-01 Alaska Models: Canadian Routes, LNG, GTL; HR 4 Story; Cook Inlet Supply-Demand Report: AEDC; Commonwealth North Investigation & Our Article; Report: Backbone; Legislature Contacts; State Gas Pipeline Financing Study; 5-02 Alaska Producer Update; Kenai: "Oil & Gas Industry Issues and Activities Report, 11-02"; Alaska Oil & Gas Tax Structure; 2-27-02 Royalty Sale Background; Alaska Gas Pipeline Office opens, 7-01, and closes, 5-02; Betty Galbraith's 1997-1998 Chronology. Our copy.
CANADA: 1-10-03, "Arctic Gas Pipeline Construction Impacts On Northern Transp."-Transport Canada-PROLOG Canada Inc.-The Van Horne Institute;Hill Times Reports, 8-30-02; 9-30-02, Cons. Info. Requirements; CBC Archives, Berger Commission; GNWT Economic Impact Study, 5-13-02; GNWT-Purvin & Gertz Study, 5-8-02; Alberta-Alaska MOU 6-02; Draft Pan- Northern Protocol for Oil and Gas Development; Yukon Government Economic Effects: 4-02 & PPT; Gas Pipeline Cooperation Plan Draft & Mackenzie Valley Environmental Impact Review Board; Mackenzie Valley Pipeline MOU Draft, 6-01; FirstEnergy Analysis: 10-19-01; Integrated Delta Studies; National Post on Mackenzie Pipeline, 1-02;Northern Pipeline Act; Haida Nation v. British Columbia; Indian Claims Commission; Skeena Cellulose decision -- aboriginal consultations required, 12-02; Misc. Pipeline Studies '02
COMPANIES: Alaska Gas Producers Pipeline Team Newsletter, 7-27-01; APG Newsletter: 5-02, 7-02 & 9-02; ArctiGas NEB PIP Filing Background; NRGPC Newsletter: Fall-02; 4-02 ArctiGas Reduces Field Work; BP's Natural Gas Page; Enbridge Perspective; Foothills Perspective; Williams Perspective; YPC Perspective, 7-02
MEDIA REFERENCE: Alaska Journal of Commerce; Alaska Inc. Magazine; Anchorage Daily News; Canadian Broadcasting Corporation; Fairbanks Daily News Miner, Juneau Empire; Northern News Services; Oil & Gas Reporter; Petroleum News Alaska; Whitehorse Star, etc.
EXTENDED CONFERENCE NEWS: Alaska Support Industry Alliance, Anchorage Chamber of Commerce, Canadian Institute, Insight Information, Inuvik Petroleum Shows, International Association of Energy Economists, Resource Development Council for Alaska, Ziff Energy Group
1. Current Events: The Competing Projects 2. Oil & Gas History 3. Gas Pipeline History 4. Alaska Facts 5. Canadian Facts 6. General Information: Papers, Books, Maps, Oil & Gas Facts etc. 7. Current Chronological History 8. Other Personal Observations: Mike Doyle; Mayor Eben Hopson
Shigeru (Sam) Muraki at PacCom' s 2/14/2001 Oil & Gas Symposium. (Photo: Mr. Muraki, respected General Manager of the Tokyo Gas Co., Ltd. Gas Resources Department. His company has been a pioneer importer of LNG from Phillips' Kenai liquefaction facility since shortly after Alaska's statehood. He continues to closely observe Alaskan actions, economics and perceptions. -dh, 1-02)
1. Current Events Now Making History: The Competing Projects. See gas pipeline historical summary below and more complete history (not completed) under the Arctic Gas, ANGTS, ARC, Gas to Liquids or LNG tabs. See author's 4-25-02 speech to Aboriginal Conference in Edmonton.
All of these options (See BP's description) have evolved from the intense competition among the gas titans of the 1970s, described in more detail under the individual project buttons on your left (See 1976 project map).
The “Northern Route” project (ARC, Ltd.), would take ANS gas about 325 miles east, via a pipeline buried 15' in the sea bottom, combine it with Mackenzie Delta gas, moving all the gas to southern markets in the U.S. and Canada. Arctic Gas' original route would have been buried onshore through the area now known as the Arctic National Wildlife Refuge, then designated only as a "Range". This is the shortest route, attractive to investors but not supported by most Alaskans. It is supported by NWT leaders. Enbridge has a 'Canadian' option, as well (See this concept evolve via news reports, beginning late May 2001.
The “Southern", or "Highway Route” project (Alaska Natural Gas Transportation System, “ANGTS”, promoted by Foothills Pipe Lines, Ltd., owned by , TransCanada Pipelines, LP., and Westcoast Gas Transmission Co), would move ANS gas down the TAPS right of way to Fairbanks, then on a buried pipeline route south, roughly paralleling the Alaska Highway. It embodies major components of the "Alcan Pipeline" proposal of the 70s and is now favored by Alaska Governor Tony Knowles, most Alaskans and Yukon leaders. The Alaskan Gas Producers Pipeline Team, in April 2001, formally announced a $75 million feasibility study of the Southern and Northern routes and named initial contractors.
Four LNG concepts, piping ANS gas to various South-central Alaska tidewater locations, would convert the gas to Liquefied Natural Gas (LNG, -260 degrees F.), load it onto tankers bound for Asia or southern markets, re-gassify it on the other end for customer distribution. (Refer to Terminus Group (Photo-upper left: Kenai Mayor Dale Bagley of the Terminus Group trades notes with Phillips executive, Mark Ireland at PacCom Conference, 2/14/01), Yukon Pacific Corp (Photo-lower right: Author introduces YPC Vice Chairman John Horn at PacCom Conference, 2/14/01), North Foreland Project, and the Port Authority.) While these projects mostly envision sales to Asian countries, they generally emulate the "El Paso All Alaskan Pipeline" proposal technology which in the 1970s targeted the California/displacement market, with support from many Alaskans including, most conspicuously, former Governors William A. Egan and Walter J. Hickel--and OMAR (Organization for the Management of Alaska's Resources, forerunner of today's Resource Development Council for Alaska.)
Several companies support various “Gas to Liquids” (GTL) projects. Unlike LNG or natural gas, GTL could be moved in “batches” through an oil pipeline. There are many other differences, explained on the ANGTL proponent site, and BP's excellent summary. GTL technology was not proven, or at least discussed, in the 70s though oil pipeline transport of 'heavy ends' or propanes, butanes, etc., was.
Political, legislative and regulatory developments. See current news and archives.
2. Oil and Gas History (Please refer to Jack Roderick's, "Crude Dreams: A Personal History of Oil & Politics in Alaska", and to these 'facts'): In April 1967 ARCO employees began drilling Prudhoe Bay State No. 1 and announced a discovery on February 16, 1968. Those pioneers didn’t then appreciate the degree of prosperity their work would bring to Alaska for the next thirty-plus years. They had discovered North America’s largest oil field 200 miles East of Barrow, 650 miles North of Anchorage. The nearly 10 billion barrels of recoverable oil had awaited them since prehistoric times in a 600 foot thick sandstone reservoir some 9,000 feet beneath the tundra’s surface.
About 26 trillion cubic feet (TCF) of natural gas accompanied the oil, about 1/3 mixed with the oil and another 2/3 overlaying the reservoir as a ‘gas cap’. While oil companies studied how to move this energy, only the oil found an economic way to market. Nearly 30 oil and gas companies in the U.S. and Canada studied alternative gas transportation schemes between the late 60s and early 80s. None proved feasible. The gas would have to wait.
By 2002, Alaska North Slope (ANS) oil flowed at about half the rate it did when the 48” diameter Trans-Alaska Pipeline System (TAPS) was completed in 1977. Proven reserves of ANS gas have grown to about 35 TCF, about 1.5 times the total natural gas consumed by the entire U.S. annually. Geologists predict that over 100 TCF of ANS gas will be found. Put into this mix that a little oil and nearly 10 TCF of gas has been discovered in the nearby Mackenzie Delta of Canada, remote energy reserves also without a transportation project. Also, new exploration is occurring, with some success.
Natural gas and oil (either refined or generating electrical power) account for the dominant potential source for increased power production in the U.S. and Canada. Accordingly, development of North Slope gas and ANWR energy within 5 years could help eliminate California's energy uncertainty and significantly reduce North America's dependence on the Middle East. -dh
A: The two fields produced 663,832 barrels per day in state fiscal year 2002 -- two-thirds of all oil produced in Alaska. Prudhoe Bay is the most productive oil field in the United States. Kuparuk ranks second only to Prudhoe Bay. Output at both fields has been declining for years. Since fiscal year 1994, Prudhoe Bay's production has fallen by more than 50 percent. Its peak output was in fiscal 1988, when Prudhoe pumped more than three times as much oil as it does today. In recent years production has dropped between 5 percent and 8 percent per year. Other fields must supply at least that much new oil each year just to keep production level. Kuparuk is a similar story. Production peaked in fiscal 1993 and has dropped by almost half since then. New fields on the North Slope have helped offset the decline, but those fields are smaller and less profitable than the huge discoveries at Prudhoe and Kuparuk, and they pay lower taxes on each barrel of production. This does not mean new fields won't be discovered to bring new profits for producers and oil revenues for the state, but it does mean the odds are long on finding fields that do as well as Prudhoe Bay and Kuparuk.
Q: What is the average production (barrels per day) from North Slope oil fields other than Prudhoe Bay and Kuparuk?
A: The 21 other fields averaged 16,200 barrels per day per field in fiscal year 2002. That means the average new field is 2.4 percent the size of the giant fields at Prudhoe Bay and Kuparuk. Omitting two tiny North Slope fields, a more representative average production for each new field would be 17,900 barrels a day. That is still just 2.7 percent as much as Prudhoe and Kuparuk.
Not only do these new fields produce much less oil, but they also pay a significantly lower severance tax rate. Through a formula called the economic limit factor, the severance tax rate declines as fields become smaller and less profitable.
3. Gas Pipeline History. (For more information, see the Arctic Gas and...other project tabs, above left.) Alaska North Slope explorers formally began considering options for moving gas to market in the late 1960s. The first study group formed to conduct research was called "Gas Arctic", which evolved into "Arctic Gas" in the early 70s. Arctic Gas was a large consortium of American and Canadian oil, gas, pipeline, gas distribution and natural resource companies. The Board consisted of CEO's or senior executives of member companies, usually meeting monthly in some North American venue: from The Royal York in Toronto to the Chicago Ritz Carlton, the Madison in Washington...or in LA, Calgary or Houston. Every study effort or Arctic Gas department was somehow overseen by a consortium committee consisting of vice president equivalents in that discipline. Typical board or committee meeting consisted of a medium to large-sized conference room with a "square-shaped table". In the early 70s, the operating entities were organized as Alaskan Arctic Gas Study Company and Canadian Arctic Gas Study Limited. As regulatory, legislative and administrative decisions approached in the mid-70s, the names were changed from "study" to "Pipeline", in anticipation of approval. Investment and finance executive, William Wilder, served as Chairman. Vice Chairman was the brilliant attorney, William Brackett. Former Alaska Lt. Governor, Robert W. Ward, and Vern Horte (former TransCanada Pipe Lines, Ltd. President) were presidents of the US and Canadian companies. As a matter of Alaskan interest, Amos Matthews served as Alaskan Arctic's Executive Vice President. After the company's fall, 'Mo' married former Anchorage Daily News publisher, Kay Fanning. The two then moved to Boston where Kay ran the Christian Science Monitor until her death in October, 2000. They migrated to Alaska every year, where so much of their lives' work developed and many of their dearest friends were; some of us believe they never truly left.
These companies spent about $250 million studying:
1. Transportation modes, including:
2. Transportation routes, including:
3. Engineering, environmental, archaeology, geology, socio-economic, regulatory, permitting, statutory and other considerations.
Arctic Gas succeeded in advocating passage of the (PL94-586, 94th Congress; 90 STAT. 2903), following execution of an effective nationwide, grassroots communication and Washington government affairs program. It was intended to expedite the administrative and court appeal procedures required for the necessary government authorizations of an Alaska gas transportation system. In the coming months and year, the Federal Power Commission staff and Presiding Administrative Law Judge, Nahum Litt (February 1, 1977 "Initial Decision..."), recommended approval of Arctic Gas, with El Paso's project as a 'back-up', and that Alcan not be considered. The Federal Power Commission's May 1, 1977 "Recommendation To The President", blessed either Arctic Gas' or Alcan's Alaska Highway alternative route, but not El Paso's LNG project; the four Commissioners split 2-2. Then, in July of 1977, the National Energy Board of Canada supported Justice Thomas Berger's Mackenzie Valley Pipeline Inquiry recommendation for a 10 year moratorium against a Mackenzie Valley routing, finding against Arctic Gas in Favor of the 'Alcan Pipeline' route along the Alaska Highway (ANGTS).
Since there was no longer an alternative, some--but not all--former Arctic Gas consortium members, by Fall of 1977, lent their support to Alcan after dissolving the Arctic Gas organization. Together, the new group worked to obtain President Carter's approval of the route, and legislative support of a Northern Gas Pipeline treaty arrangement between Canada and the United States.
Due to falling gas prices, demand and related factors, the project was never built by the early 1980s as intended--except certain 'pre-built lines'. The project, which had been in the hands of Robert Blair (Alberta Gas Trunk Line, Ltd.), John McMillian (Northwest Natural Gas Co.) and Robert Pierce (Current Chairman of Foothills Pipe Lines Ltd., a wholly owned subsidiary of TransCanada PipeLines Limited of Calgary and Westcoast Energy Inc. of Vancouver. See Mr. Pierce's excellent review of the project's heritage ), shifted ownership as years passed. Now, a quarter-century later, America's dependence on foreign energy has grown (i.e. 56% in 2001, projected 65% dependent by 2015), North Slope gas reserves have grown, natural gas prices tripled at one point before falling back in mid-2001, and the US West Coast has experienced severe shortages of energy. President George W. Bush campaigned for office partly on a platform of providing the country with greater access to Alaska's resources. Accordingly, some think that a long delayed Northern Gas Pipeline project is now on course for a quick approval. The "route and mode" choices continue, after about three decades of debate, to be unresolved at this writing; in fact, the intensity of disagreement among various Alaskan and Canadian stakeholders could very well delay or stall an Arctic gas project again. -dh (7-15-2001)
(For more information, see the Arctic Gas and other tabs to the left, under construction. )
4. Alaska Facts: Purchased from Russia in 1876 through the tireless effort of Secretary of State William Seward (Statue at Anchorage's Loussac Library, photo-right) - State Motto is "North to the Future" - State's name originated from Aleut word for "great land" - The state capital is Juneau -
Alaska, Land Of Superlatives:
Alaska Flag and Song. The design for the Alaska flag was selected in a contest for Alaska students in grades seven through twelve in 1926. The winning design, submitted by 13-year-old Benny Benson, consisted of eight gold stars on a field of blue, representing the Big Dipper and the North Star. The Alaska Legislature adopted the design as the official flag for the Territory of Alaska on May 2, 1927. Later the drafters of the Alaska constitution stipulated that the territorial flag would become the official flag of the State of Alaska.
The words to the song Alaska's Flag were written by Marie Drake, a long-time employee of the Alaska Department of Education, and first appeared as a poem in 1935. The poem was set to music composed by Elinor Dusenbury, whose husband was commander of Chilkoot Barracks at Haines from 1933-1936. The Territorial Legislature adopted Alaska's Flag as Alaska's official song in 1955.
Permission is not needed to reproduce the image of the state
flag. However, The University of Alaska holds the copyright to the song. For
further information, contact the University Archivist at the Rasmuson Library,
University of Alaska Fairbanks, Fairbanks, Alaska 99775-6808.
The official motto of the State of Alaska, "North to the Future", was adopted by the legislature during Alaska's Purchase Centennial in 1967. Created by veteran newsman Richard Peter, the motto is meant to represent Alaska as a country of promise. According to Peter, the motto "...is a reminder that beyond the horizon of urban clutter there is a Great Land beneath our flag that can provide a new tomorrow for this century's 'huddled masses yearning to be free.' " Due to long hours of summer daylight, we also refer to the state as the "Land of the Midnight Sun".
The Seal of the State of Alaska. When Congress provided civil government for Alaska in 1884, the first governor designed, and had made, a seal for the District of Alaska. The seal was used until 1910 when Governor Walter E. Clark decided the design placed too much emphasis on icebergs, northern lights and Native people. The governor had a draftsman in Juneau sketch a new seal that incorporated the original features, plus symbols for mining, agriculture, fisheries, fur seal rookeries, and a railroad.
The design was approved by the acting attorney general of the United States. A more refined drawing was made by an unknown person in the Department of the Interior, and the new seal was ready for use early in 1911. When Alaska changed from district to territorial status in 1912, the new designation was substituted on the seal. The seal may be used only with the permission of the Lt. Governor.
The Constitution of the State of Alaska provides that the territorial seal shall be the seal for the State of Alaska, with the word "territory" changed to that of "state." The seal is 2 1/8 inches in diameter.
The State Bird, the Willow Ptarmigan, was adopted by the Territorial Legislature in 1955. It is an (15-17 inches), arctic grouse that lives among willows and on open tundra and muskeg. Plumage is brown in summer, changing to white in winter. The Willow Ptarmigan is common in much of Alaska.
The State Fish - King Salmon (adopted by the Alaska Legislature in 1962)
The State Flower, the wild Forget-Me-Not, was adopted by the Territorial Legislature in 1917. It is a perennial that is found throughout Alaska, from Hyder to the Arctic Coast, and west to the Aleutians.
The State Fossil - Woolly Mammoth (adopted by the Alaska Legislature in 1986)
The State Gem - Jade (adopted by the Alaska Legislature in 1968)
The State Marine Mammal - Bowhead Whale (adopted by the Alaska Legislature in 1983)
The State Mineral - Gold (adopted by the Alaska Legislature on 1968)
The State Sport - Dog mushing (adopted by the Alaska Legislature in 1972)
The State Tree - Sitka spruce (adopted by the Alaska Legislature in 1962)
State Insect - Four spot skimmer dragonfly
6. General Reference. Arlon Tussing, has been deeply involved in Alaska gas and other economic studies for many years, as has the University of Alaska's Institute of Social and Economic Research (ISER); Oil and Gas Investor; Technical Standards Services, Ltd., "The most comprehensive and up-to-date collection of books, CD-ROMs, directories, maps, charts, statistics, surveys, videos and other media for the oil and gas industry" . For many general research links, please review this bibliography.
Upcoming Conferences: IOGCC, 5/11 -13;
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