The fate of the natural-gas project in Alaska illustrates how quickly shifts in energy markets can conspire to make such undertakings uneconomic.
"In the span of four years or less we've seen a complete upset over the continental natural-gas supply system," says Peter Tertzakian, chief energy economist and managing director of ARC Financial Corp., an energy-focused private-equity firm in Calgary.
At the same time as shale-gas production accelerated in the lower 48 states, flooding the once-promising destination for Alaskan gas, he says, demand for natural gas in Asia has taken off, with the market growing at about 8% a year. ...
"The opportunity right now is in Asia with the high dollar value and high growth. So whether it's Alaska or Western Canadian natural gas, the free market forces are at play to capture the highest value," Mr. Tertzakian says.
Important warning about e-mails purporting to be from the adn.com staff.