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North Slope Natural Gas Reinjection Issues |
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Written by Dan Chay
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Friday, 03 February 2006 |
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The following quote is taken from a November 2001 paper produced by the James Baker Public Policy Institute of Rice University, emphasis added:
When and how the North Slope gas will be exploited is as much a function of operational requirements as economics. Oil production is declining across the region, and the percentage of natural gas recovered from the Prudhoe Bay field increases as oil output drops. By 2007, the rising percentage of natural gas production from the Prudhoe Bay field will exceed the 10 Bcf/d gas-handling facility's capacity. The Prudhoe Bay producers could mitigate the decline rate for oil production later in the decade by identifying alternative outlets for associated gas such as an export project. Limiting gas production to the capacity of the gas-handling facilities is a less attractive option, as it would restrict oil production from the North Slope, putting additional strain on the region's operating economics. The Alaska gas pipelie project would alleviate this problem, allowing the companies to maximize oil production while still having enough gas for applications -- LNG, natural gas-to-middle distillates or gas-to-liquids (GTL), and pressure maintenance. Producers can also utilize an existing salt-water injection facility to free up more gas to move to the lower-48. To put "10 Bcf/d" into perspective, according to the South Central Alaska Natural Gas study published by DOE in June 2004, total current natural gas consumption for all industrial, commercial, and residential uses in central Alaska is about .55 Bcf/d. That's about 1/16th of Prudhoe Bay natural gas being reinjected in 2001, and 1/20th of expectations for 2007. For $1.5-3 billion dollars, as I currently understand, we could drop an 18" pipeline down existing easments of the Haul Road and the Railroad, and secure central Alaska's high quality energy (much cleaner than coal) energy needs for generations. {moscomment}
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Last Updated ( Friday, 03 February 2006 )
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