Thursday, May 19, 2011

Natural Gas Pipeline from Alaska to the Lower 48 Is Uneconomical

EIN News says, "BP/Conoco Phillips Scrap $35 Billion Alaska Pipeline Oil giants BP and Conoco Phillips have abandoned plans to build a $35 billion pipeline to carry natural gas from Alaska to the lower 48 U.S. states because of weak customer demand. (myfoxhouston.com)

This is probably a misrepresentation of the true reason why BP/Conoco Philips have abandoned the pipeline project. Remember that the latest information on U.S. natural gas is its availability in very large quantities from the Bakken Shale Formation in North Dakota and Montana, through a fracturing process. This would make importation from Alaska uneconomical, since it would be available in the lower 48 without the long distance pipeline.

No comments:

Post a Comment