The Alaska Pipeline Project (APP) announced that it will conduct a non-binding public solicitation of interest in securing capacity on a potential new pipeline system to transport Alaska’s North Slope gas.
The solicitation of interest will take place from August 31 through September 14, 2012.
The solicitation of interest is being conducted to identify parties potentially interested in making future capacity commitments on a pipeline system from the Alaska North Slope to a gas liquefaction (LNG) terminal at a tidewater location in south-central Alaska or to an interconnection point near the border of British Columbia and Alberta in Canada.
APP will conduct the solicitation of interest in accordance with the Alaska Gasline Inducement Act (AGIA), which requires TransCanada, as the AGIA Licensee, to assess market interest in a pipeline transportation system for Alaska North Slope gas every two years after its first open season.
APP has set a high priority on providing access opportunities for in-state natural gas to heat and power local homes, business and industry. All options being pursued under AGIA provide for a minimum of five delivery points for local natural gas connections in Alaska.
By Dan Potter
President Obama staging a photo op at the TransCanada pipe yard outside of Cushing today angers members of the Domestic Energy Producers Alliance.
DEPA’s Mike Cantrell says the President has proven for three years that he is against the fossil fuel industry.
“The irony of it is, he’s been unsuccessful because Congress wouldn’t go along with him. And now, he takes credit for the gains we’ve made in oil and gas production which have nothing to do with him and his policies. They’ve (occurred) in spite of him and his policies,” Cantrell said.
DEPA has cancelled plans to stage a protest in or near Cushing during the President’s visit.
“They’ve changed it from campaign visit to a state visit,” says Cantrell. “It’s not open to the public.”
The President’s press entourage will be bussed from Oklahoma City to the Cushing event so even they wouldn’t come in contact with any protestors.
When asked what he’d say if he had a few minutes with President Obama, Cantrell says, “I’d say, Mr. President, we’d like to visit with you about domestic oil and gas. And that there’s a difference between U.S. domestic energy producers and royalty owners and the big oil companies that you seem to lash out at. But, in your lashing out at them, you have hit us all with your policies.”
- Obama said ready to push partial Keystone XL approval (mb50.wordpress.com)
- Obama flip-flops on Keystone XL pipeline (rt.com)
- Not a friendly greeting for the president’s energy tour (politico.com)
Obama will be in Cushing, Okla., the start point of the pipeline’s southern half on Thursday
Citing a senior administration source, CNN reported on Tuesday that Obama wants to slash several months off a permit approval process that can ordinarily stretch on for as long as a year.
The administration wants to speed things up to deal with a glut of oil in Cushing, Oklahoma, where crude from the Midwest runs into a logjam on its way to refineries on the Gulf of Mexico.
Obama will make the announcement Thursday at a storage yard in Cushing, the starting point of the pipeline’s southern half.
Pipes that will be used to build Keystone XL to the Gulf Coast are being housed at the facility.
Gas prices rising
The announcement comes as prices at the pump continue to soar. Republicans are blaming Obama’s energy policies for rising gas prices and continue to attack him for rejecting Keystone XL in January.
The U.S. average price for a gallon of gasoline rose for the 11th straight day on Tuesday to $3.85 US, and soared to $4 a gallon in some states. That would amount to a little over a dollar a litre in Canada.
Millions of barrels of unrefined crude are sitting in storage facilities in North Dakota, in particular, but there’s a lack of pipeline capacity to carry it to the Gulf Coast and a limited number of rail cars that can transport the oil south. The state is currently in the throes of a major oil boom thanks to the discovery of the so-called Bakken Shale.
Obama’s recent praise of Calgary-based TransCanada’s decision to proceed with the construction of the southern segment of the pipeline signalled a shift in attitude from the White House after it rejected the pipeline outright in January.
The entire length of the proposed, $7.6 billion pipeline would stretch from Alberta’s oilsands through six U.S. states to the Gulf Coast.
No decision from State Dept.
The U.S. State Department has yet to make a decision on the pipeline, saying it needs more time to conduct a thorough environmental review of a new route around an environmentally sensitive aquifer in Nebraska. State department officials are assessing the project because it crosses an international border.
In November, under mounting pressure from environmentalists, the State Department deferred making a decision on Keystone until after this year’s presidential election, citing concerns about the risks posed to the aquifer.
Pipeline proponents cried foul, accusing Obama of making a cynical political move aimed at pacifying the environmentalists of his base and improving his chances of re-election.
Republicans then held the administration’s feet to the fire, successfully inserting pipeline provisions into payroll tax cut legislation in late December.
Within a month, facing a mid-February deadline imposed by that measure, Obama nixed TransCanada’s existing permit outright, saying there wasn’t enough time to thoroughly review a new route before giving it the green light.
But Obama also assured Prime Minister Stephen Harper that the decision did not reflect on the pipeline’s merits, but was merely necessitated by Republican pressure tactics. He welcomed TransCanada to propose another route.
- Obama said ready to push partial Keystone XL approval (cbc.ca)
- Politics sank Keystone XL, Exxon says (mb50.wordpress.com)
- Obama to fast track southern portion of Keystone XL Pipeline (whitehouse.blogs.cnn.com)
- As Obama supports part of Keystone XL, TransCanada stops to remove a pig from a pipe (macleans.ca)
- Obama Heading To Oklahoma To Fast-Track Southern Leg Of Keystone XL (thinkprogress.org)
- President Barack Obama’s four-state energy tour stops in Oklahoma on Wednesday (newsok.com)
Published: March. 12, 2012 at 6:47 AM
U.S. President Barack Obama in January denied a permit for TransCanada to build the billion-dollar Keystone XL oil pipeline. Republican leaders had tried to push the permit through by including the pipeline in a bill that extended payroll tax benefits. Obama rejected the permit because of an “arbitrary” deadline proposed in the legislation.
Exxon Mobil Chief Executive Officer Rex Tillerson told a major energy conference in Houston that industry leaders were practicing due diligence with the project but it was the U.S. political system that was getting in the way of development.
The decision to deny the initial permit for TransCanada, Tillerson said, was because of “political calculations” in Washington.
“In the end, it was also a disservice to public employees who are charged with overseeing this process and who met their obligations,” he was quoted by the Platts news service as saying. “We must continue to engage elected officials of the public to communicate the consequences of failing to move forward with such strategic opportunities.”
Backers of the pipeline describe it as a “shovel-ready” project that would shield the U.S. market from the effects that Middle East tensions have on the oil market. Critics say crude oil from Canada, designated for Keystone XL, is one of the dirtiest types of crude oil.
TransCanada can reapply after it settles on a route through Nebraska.
Read more: UPI
- Keystone XL Pipeline Bill Dies In Senate (inquisitr.com)
- Senate backs Obama on Keystone XL pipeline (mysanantonio.com)
- Keystone XL pipeline denied lifeline thrown by Republicans (ctv.ca)
- U.S. Senate blocks Republican move to force quick approval of Keystone pipeline (news.nationalpost.com)
- Keystone bill defeated by U.S. Senate Democrats (windsorstar.com)
- Senate kills attempt to approve Keystone pipeline (marketwatch.com)
Broadwater also asked the Commission to vacate its previous authorization for the LNG project.
The company is a joint venture by TransCanada Corporation and Shell Oil, and it planned to build a floating storage and regasification unit (FSRU) attached to a yoke mooring system about 9 miles off Long Island and 10.5 miles off Connecticut, with a maximum regasification capacity of about 9 million mt of LNG per annum.
- USA: Environmental Groups Join Forces Against LNG Fracking (mb50.wordpress.com)
- USA: Sabine Pass LNG Gets Cargo (mb50.wordpress.com)
- USA: Golden Pass LNG Plans Re-Exports (mb50.wordpress.com)
- USA: Sierra Club Opposes Cove Point LNG Export Plans (mb50.wordpress.com)
- USA: Encana Inaugurates LNG Fueling Station in Louisiana (mb50.wordpress.com)
- Zachry-CB&I venture lands Freeport FEED (mb50.wordpress.com)
- USA: Seventeen LNG Cargoes Re-Exported in Jan-Nov (mb50.wordpress.com)
- U.S. LNG Imports Nosedive in Jan (mb50.wordpress.com)
At this State of the Union address, President Obama proudly stated that “American oil production is the highest it’s been in eight years” and declared that his Administration would “open more than 75 percent of our potential offshore oil and gas resources.” While President Obama spoke favorably of the role that oil and gas development play in America, the President’s and his Administration’s actions don’t match with his words.
There are several areas where the President and his Administration are unreasonably hindering access to more oil and gas for Americans and threatening the industry with punitive measures:
- Keystone permit rejection. The Keystone XL pipeline would deliver oil from our Canadian ally, relieve some of the pain of high prices at the gas pump, and create jobs in America. Nevertheless, and despite a State Department environmental review concluding that the project poses no significant environmental risk, the President chose to reject TransCanada’s permit application to build the pipeline.
- Targeted tax hikes. The President continues to threaten the oil industry with targeted tax hikes. Under the rhetoric of eliminating subsidies for the industry, the President’s proposal would eliminate certain tax treatments for oil that are available to many industries, effectively singling out the oil industry for a tax hike.
- Slowdown of production on federal lands. While American oil production has been increasing, the vast majority of that production is taking place on private lands. Production on federal lands is actually 40 percent lower than it was 10 years ago. The House Natural Resources Committee also reports that under the Obama Administration, 2010 had the lowest number of onshore leases issued since 1984.
- Fracking regulation. Hydraulic fracturing (or “fracking”) is a proven oil and gas extraction process that should not be subject to overly burdensome regulations. The Environmental Protection Agency is currently considering federal regulation of the fracking process under the Safe Drinking Water Act. The problem is that the agency is following a procedure that even the Department of Energy criticized for its “selective focus” on “negative outcomes.”
Words alone will not make energy more abundant and affordable, nor will they create the energy-related jobs that would make the American economy stronger. If the President is truly concerned about increasing America’s energy access, he certainly has a funny way of showing it.
For policies in that direction, Heritage policy analyst Nick Loris explains in two papers how to make gas and electricity prices more affordable and how to create jobs and raise government revenue through energy exploration.
- Natural gas sector set up by Obama to be sabotaged? (mb50.wordpress.com)
- Obama loves oil – Not! (mb50.wordpress.com)
- No energy industry backing for the word ‘fracking’ (mb50.wordpress.com)
- Is President Barack Obama responsible for U.S. oil production rise? (mb50.wordpress.com)