The state Division of Oil and Gas has chosen a single firm, Econ One of Los Angeles and Houston, for a pair of studies relating to the commercialization of Alaska North Slope natural gas, Kevin Banks, DOG petroleum market analyst told PNA.
An analysis of now ANS gas will be valued for state royalties will be done primarily at Econ One’s Los Angeles office, Banks said. That study will seek to make the best case for the state in royalty calculations, and establish the state’s valuation methods in advance to avoid litigation and provide certainty for the companies.
The demand study will be handled primarily by Econ One at its Houston office and will estimate the cost of delivering ANS natural gas to various regions of the state. It will also evaluate energy use and costs by region, and whether ANS gas can be competitive with current energy sources.
Banks noted that no in-state companies bid on the ANS natural gas in-state use study contract — likely because most qualified in-state firms were already committed to the producer group.
