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ACES must change

Posted: December 21, 2011 - 9:48am

Two news stories Thursday should set off alarms about Alaska's fiscal future. One on National Public Radio reported that oil production in Iran is plummeting due to lack of investment. The second came Petroleum News Alaska that North Slope production slipped below 600,000 barrels per day during FY 2011 - the lowest ever recorded.

We know there is a direct corollary between investment and production levels. And we know that the investment Alaska needs to stem its production decline is going to other oil provinces where producers can earn a better rate of return.

ACES has turned Alaska into an Arctic Iran where producers hesitate to invest - and explorers call for reform. The governor has a plan to increase production to 1 million barrels a day within a decade. While his plan may not be perfect, one anchor element is not open to debate. ACES must change - and it must change now. I hope the state Senate is listening.

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akal 12/21/11 - 12:48 pm

did you work for Veco?

kenai_kid 12/21/11 - 03:25 pm
TAPS issues

The pipeline is soon approaching 1/4 of design capacity. Just as any other infrastructure, when the design is exceeded, engineering changes must be made. For TAPS, that is right at 500 thousand barrells a day. Such engineering changes will cost big money. Either way, changes must be made and will both cost major investment dollars. Mr McAllister is correct. The current tax structure needs to be changed.

JOAT 12/21/11 - 07:52 pm
TAPS will cease to function

TAPS will cease to function below 300,000 bbls per day and will have to be shut down. There is no engineering fix below that level. They've already invested more money than you guys can comprehend over the last 5 years to keep the system running below 600,000 bbls, which was the minimum design specs of the original build.

As we approach 300,000 bbls, there also isn't enough cash flow into the industry to pay for the thousands of employees it takes to make the system work.

At the current trend in production decline, TAPS will be tapped out in less than 7 years.

Alaska's economy will crumble if this happens, whether you work in the oil industry or not. Some 80% of the state's wealth comes from oil and mining.

The fix is actually pretty easy. Open ANWR and NPR for exploration and drilling. We can't wait a minute longer. Once the flow hits 300, it's all over.

spwright 12/23/11 - 10:38 am
Assign a Committee to Study That 12/23/11

Fri. 12/23/11
Well Mr. McAllister, You make a interesting statement.
Now lets Assign yet another Committee to Study that issue.
Let's Talk, Talk then Talk some more & when that's done, assign a committee to research the issue some more.
for 30 years the issue of a Natural Gas Pipeline has been discussed by the Republican Majority in Juneau.
Oh wait ! We need to form another Committee to study that issue.
Insanity is defined as doing the same thing over & over again & again but expecting different results.
Re-Electing the same Politicians year after year & expecting them to produce results is Insanity.


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