AKgasman Thanks Gov. Palin for Her Petro Tel Point Thomson Plan

In a very detailed response to this article at the Alaska Dispatch, commenter AKgasman  gives Governor Palin a shout out for her Petro Tel Point Thomson plan (emphasis mine):

Report: Alaska oil patch workforce growing at healthy clip by Alex DeMarban | May 31, 2012; “A new manufacturing directory says Alaska’s oil-and-gas workforce expanded 5 percent over the last year to 9,062 employees, a sign that new tax incentives for exploration continue to work some magic”. Emphases mine.

Alex your statement “but the debate will likely rage on as long as Prudhoe Bay’s oil production continues to decline”. The natural order of things is for an oil reservoir to decline after reaching its peak. Now Alex just what part of that can’t you wrap you mind around? The only reason Prudhoe Bay production is as low as it is due to the fact that Governor Parnell is obstructing DNR from carrying out DNR’s charge and trying to black mail the legislature into an oil tax reduction for the major oil companies. Parnell is prostituting the Governor Office for the major oil companies.
Parnell withdrew his special session oil tax bill because the House got wise to Parnell’s lies about the oil pipeline shutting down and Parnell faults statement about additional oil production thus would not again pass Parnell’s oil tax bill. The failure of the House to pass Parnell oil tax bill would have been a disaster for the oil companies and Parnell’s reelection.

However, if Governor Parnell would let DNR do their job, DNR would order the oil companies to not let the Prudhoe Bay oil reservoir gas pressure continue to decline any further, as Parnell is required to do but is not for the benefit of the oil companies. Second, order the oil companies to abide by the agreement they have with the AOGCC that the oil companies would not let the Prudhoe oil reservoir gas pressure fall below 3600 psi now 3100 psi and to rebuild the oil reservoir gas pressure back up to 3600 psi. Third once the oil reservoir gas pressure is rebuilt to 3600 psi then rebuild the gas pressure back up to 4400 psi, the discovery pressure, for maximum oil recovery and gas liquids as required by Alaska’s laws and Constitution.

The Prudhoe Bay producers can explore for and produce new gas use gas from somewhere (there is no proven gas available on the North Slope; the North Slope is gas Short! Or they can use power plant flue gas to rebuild the oil reservoir gas pressure. There is not enough proven gas on the Slope to produce all of the proven oil on the Slope. Flue gas appears to be the only viable option for rebuilding reservoir gas pressure, but there a lot of flue gas available. The sequestering of North Slope CO2 should make the greenies happy. Yes, Alex, after the Prudhoe Bay oil reservoir gas pressure is rebuilt and maintained, Prudhoe Bay will continue its long decline, 50 years to a 100 years.

Fourth DNR or AOOGCC needs to order the production of Prudhoe Bay gas cap liquids by recycling the gas cap gas to produce gas liquids like Governor Sarah Palin’s Petro Tel Point Thomson plan which maximizes the oil, gas liquids and condensate recovery. (Thank You Sarah Palin for presenting Petro Tel findings to the legislature, a 500 million barrel or $50 billion dollar difference. Alaska needs taxes and the Nation needs the oil which Exxon wants to waste. And Thank You Bill Walker for seeing that Point Thomson gets produced for the maximum benefit of Alaskans and the Nation. ). (Bill, you should run for governor so we can get rid of Parnell, the oil companie’s shill and obstructionist).

In recycling the produced gas is stripped of its gas liquids and the dry gas is then reinjected into the gas cap to extract more gas liquids. Gas liquids are worth more than oil. The gas cap gas pressure can be maintained by the injection of supplemental gas or power plant flue gas. The production of gas liquids from the Prudhoe Bay gas cap will require a gas liquids pipeline like Exxon original planned to do, to Cook Inlet via the Parks Highway.

You gasline advocates should refocus your demands to requiring a gas liquids pipeline off the North Slope. Because it is the only kind of a gasline that will be built to take gas off of the North Slope. Fairbanks, if not severed by a propane straddle plant on TAPS or on the Gas liquids line, will be served by a gas line from Cook Inlet.

Gas from the Nenana basin would be best for Fairbanks but in lieu of successful Nenana exploration, a gasline from Cook Inlet to Fairbanks and converted to the southern portion of the gas liquids line off the North Slope may be a solution. However, Cook Inlet gas may be the lowest cost solution. Unfortunately there is so much misdirection and dishonesty as well as stalling stalling by Parnell and the Oil Companies it difficult to proffer a correct solution.

I think Fairbanks Senator Paskvan, chairman of Senate Resources, should hold a round table teleconference conference as soon as possible and publicly explore the options for Fairbanks to obtain reasonably priced energy.

Personally, I am in favor of the construction a gasline from Cook Inlet to Fairbanks as soon as possible without waiting for the additional gas in Cook Inlet to be discovered. Contrary to what Parnell, Chenault, Hawker and the major oil companies say there is an abundance of gas in Cook Inlet; between 13 trillion cfs and 27 tcfs remains to be discovered as well another billion barrels of oil.

There is far more gas in the Cook Inlet basin than is necessary to support the Cook Inlet region and a gasline to Fairbanks and a gasline to the Dolin Mine (The Dolin mine will require more gas than Fairbanks) for the rest of this century as well as the next century. The gasline from Cook Inlet to Fairbanks could be reversed and used as the southern end of a gas liquids line off of the Slope to Cook Inlet and to take any surplus Nenana basin gas to Cook Inlet.

The Fairbanks market, by its self, is not large enough to support Nenana basin exploration.