Canadian producers say delay enhances Alaska’s gas economics
Stalling the development of Alaska gas makes economic sense for the North Slope owners and the operators of pipelines to the Lower 48, Canada’s natural gas producers have argued in a regulatory filing.
In a submission to the National Energy Board, the Canadian Association of Petroleum Producers makes a case for bringing Alaska gas on stream later rather than sooner, to take advantage of existing infrastructure.
Without suggesting an ideal timetable, the association noted that a long-range forecast by the U.S. Energy Information Administration says that Alaska gas is unlikely to reach markets before 2020.
If North Slope gas was to start flowing by 2011 a major new “express” line would be required from Western Canada to Chicago, the association said. But even a delay to 2016 could see space open up on TransCanada PipeLines Ltd.’s mainline to the U.S. Midwest.
In testimony filed for the National Energy Board hearing, which starts Feb. 24, the Canadian Association of Petroleum Producers accused TransCanada of inflating its financial requirements by prematurely forecasting developing of Alaska gas.
The timing of any project to deliver gas from the North Slope affects TransCanada’s depreciation expenses, which then spill over to pipeline revenue requirements and shipping tolls.
Forest Oil unveils large Cook Inlet prospect, needs partner
Forest Oil said its offshore Corsair prospect in Cook Inlet could hold more oil reserves than the company's producing Redoubt Shoal field.
Pre-drill analysis indicates that Corsair could contain 137 million barrels of oil, 79 million barrels in the Tyonek formation and 58 million barrels in the Hemlock formation, a company spokesman said. But these are conservative estimates, he said.
Forest was to have booked up to 70 million barrels of Redoubt oil reserves last year.
Analysis also indicates that 480 billion cubic feet of natural gas may be locked in Corsair, the spokesman said, and perhaps another half-trillion cubic feet of gas in four other Forest inlet prospects: Olsen Creek, Viggen, Tutna and Valkyrie.
However, he said that because of Forest's large investment in Redoubt, the company needs a partner to help share exploration expenses at Corsair, as well as at Forest's other inlet prospects.
Corsair is said to be geologically linked to the failed Tyonek Deep prospect, formerly called Sunfish. The area's complicated geology could pose a problem for Forest, a spokesman for the Alaska Division of Oil and Gas said.
Anadarko just 10,000 acres away from onshore limit
Anadarko's 2003 budget includes $63 million for Alaska
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