GREY:MGMCF - Post by User
Comment by
OilEngon Oct 06, 2012 12:18pm
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Post# 20456754
RE: Alaska Gas Pipeline
RE: Alaska Gas Pipeline The difference between the Alaska pipeline and the MVP is that Alaska has 6 times the gas reserves and the Alaskan government is willing to give big subsidies to the oil companies (I think they gave $500 million towards the initial work on the pipeline) Alaska also has an all weather haul road -Dalton Highway - to Prudhoe Bay.
Harper has made it very clear that the Federal government is not willing to do much besides talk about the arctic. If the Federal government woudl complete the Mackenzie Valley Highway it would make a HUGE difference. Then you could have year round operations instead of being able to operate for only 3 months of the year. Also the price of drilling would be cut by almost 70%. In other words a $30 million well would cost $10 million and what takes 1 year in the arctic would take 3 months. For the moment all we need is the road from Wrigley to Normal Wells to be upgraded. The upgrade from Norman Wells to Innuvik can come later. On the other hand, the royalty rate north of 60 in Canada starts at 1% and goes to 5% after 5 years, while Alaska charges 16 2/3%. So there are some pluses to the NWT.