10/21/2005

Alaskan Pipeline

Alaska has proposed a contract that would initiate a 3,400 mile pipeline that would transport natural gas from Alaska's North Slope producers to the Lower 48 states. The governor of Alaska was quoted as saying, "We think that we are entering a very important milestone in the history of Alaska." The project would cost at least $20 billion. If the pipeline actually passes legislation it will be in use for decades to come, pumping an estimated 35 trillion cubic feet of conventional natural gas known to be contained in the North Slope oil fields. The pipeline proposal comes in a perfect time. Heating bills are expected to rise between 50 and 70%. The increase in available natural gas would shift the supply curve out and prices would begin to fall. Opportunities like this don't come around that often; I hope that the misguided individuals that make up our political left don't screw this up!

4 comments:

Connor said...
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Connor said...

Yeah Logan, you gotta hate the environmentalists that fight against things that will make life better. If this contract goes through, that would be great for our economy. If the people would save that extra 50-70% on heating bills, they most likely would spend it somewhere else. Therefore, they would assist in keeping our market strong.

Tyler said...

I think that it sounds like a great idea. Just as Logan stated, if we can reduce our natural gas prices the economy could benefit tremendously. In addition, with the new technology of alternative gasoline vehicles maybe people would have a reasonable alternative that is feasible. From the sounds of it, this may influence the economy in many different constructive ways.

Dr. Tufte said...

I really can't see any reason to oppose this.

There is little potential harm to the environment from leaks of an odorless gas. Methane isn't even poisonous - it can only kill you from lack of oxygen, which won't happen in the out of doors.

It also burns cleaner than other fossil fuels - more energy for the amount of carbon dioxide produced.

So ... if you see opposition to this, you need to remind yourself that those folks are more out there than the usual anti-development crowd.