Friday, July 23, 2010

Fuel in Alaska - June 23, 2010

In the local newspaper I read about a company that wants to renew their license to export LNG (Liquified Natural Gas) from the Kenai terminal of theirs. There are oil and oil based production facilities in this area from several major companies. As in the well drilling in the Gulf of Mexico, many companies form partnerships to share the expense and trade specialties of production. Major names here are BP, Halliburton, ConocoPhillips and Chevron.
The local politicians wanted more assurances and guarantees that the local needs for LNG would be met before exports take place.
This is a problem that we don't think about much where we import nearly all our energy needs. There are no refineries in Alaska for the oil from the North Slope or the Cook Inlet rigs. Every bit of that oil is shipped to refineries elsewhere, primarily in the US. Then it comes back to complete the round trip, One estimate claimed the cost of shipping was $50.00 a barrel.

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