Pulling the plug on the Alaska pipe dream gas line is long overdue. This nightmare has likely wasted hundreds of millions of precious taxpayers’ dollars and caused false hopes and anxiety for untold numbers of people. It would not surprise me if a billion dollars have evaporated since the gas line was first proposed during the building of the trans-Alaska oil pipeline 46 years ago.
The world is awash in cheap natural gas, and countries are still drilling. In addition to natural gas, according to the U.S. Department of Energy, the world’s methane gas hydrates could be as vast as 250,000 to 700,000 trillion cubic feet. According to the UN Environmental Programme, the world’s reserves of gas hydrates could be as large as 3,000 to 30,000 trillion cubic meters.
For an Alaska gas line to be feasible, it would have to sell for many times today’s price at tidewater to barely break even. Doesn’t pencil out any way You look at it. “Planning” the gas line has been a money-maker for some politically connected individuals.
There is a vast amount of natural gas in Cook Inlet and other areas of Alaska (especially when the Legislature is in session in Juneau). The North Slope gas may be profitable if shipped over the pole in liquefied natural gas tankers. As an aside, last I knew, if the gas line goes by Anchorage, Cook Inlet gas will be priced at the North Slope delivered to tidewater rate, which will be much higher than the present price.
Larry R. Fay
Anchorage
Have something on your mind? Send to letters@adn.com or click here to submit via any web browser. Letters under 200 words have the best chance of being published. Writers should disclose any personal or professional connections with the subjects of their letters. Letters are edited for accuracy, clarity and length.