Cab Driver

The evidence is in, conclusive evidence at that! Conclusion upon this rude awakening discovery? Alaska’s legislators are afraid of an Alaskan Natural Gas pipeline ever becoming a reality. Don’t laugh, as the truth behind this coward like behavior hurts us more than you think. And this evidence gained credence following the latest boondoggle get-together - a.k.a. political junket - which came to be in Fairbanks, where the “In-State Gas Caucus” made up of fool-hearty state legislators along with local business buffoons and a few misfit mistrusts from the regulation side of things gave themselves a pat on the back, for the usual, nothing accomplished. That George Bush mentality of “mission accomplished” is alive and well amongst Alaska’s legislative body of ignoramuses. See, Fairbanks becomes a Mecca for political junkets - a.k.a. hideout for the CBC membership - come the “tourism-is-off” season, as hotel prices drop through the roof but the per diem allowed stays the same, so politicians can profit from this getaway. And they can no longer get away with this free-for-all in and around Anchorage, and the hotels in Homer are bugged, so until such time the complaints come rolling in, Fairbanks makes out. Now back to this Alaska Natural Gas pipeline dream. This so far “mission accomplished” has wasted away a whole lot of valuable resources, in the form of funding which translates to Alaska’s future going down the drain. But there is indeed sound reasoning as to why the present day representative body is truly afraid of a natural gas pipeline ever getting built to deliver North Slope gas to a viable market. It shouldn't happen, and it won’t, not on their watch or any future watch even though they are using this “Dream” as political clout – called “capital” to keep the constituency interested in “PIPE DREAMS”, which equates to votes come erection time. “Dear kind voters that voted for me last time, and the time before that and time before that, please vote me back into office again, as we are still working on a natural gas pipeline project for “All Alaskans” which means millions of jobs coming to a community near you”! Now anyone that gets a PFD should be familiar or at one time another heard the term “Stranded Gas”, as that touchy phrase became a convenient scare tactic which resulted in everyone believing that we must do something to let this commodity escape the “Stranded” status. That was the seed to fuel how many ridiculous pipeline projects? Honestly, with all the loot spent so far on all the so far failures, there could have been pipe in the ground had that loot been directed away from the crooks and turned over to the proletariat sector – the laborers. So once again it has come to pass providing more failure fodder for the Alaskan history books, all the wasted efforts to build a gas pipeline, here to there to everywhere in between, yet we still see nothing that even resembles a natural gas pipeline heading south from Prudhoe Bay. No pipe has been ordered, which takes at least 5-years once it is decided upon what size and quality is needed. Let’s face the facts Mr. businessman, you just don’t drive over to Home Depot with a truck and load up. And that goes true upon all the ancillary equipment and machinery required to pump something to somewhere. In reality, “who dat” afraid of the “Big Bad Wolf” has found an answer, once again it is this state’s legislative body. Read my lips, they are afraid of a Natural Gas pipeline. The same body of nincompoops that see fit to waste $-millions on facade like studies. See, it gets back to the “Stranded” thing. If North Slope gas ever finds itself subject to a compressor in efforts to take this energy to market, well guess what else becomes stranded? The oil! And the oil companies that have been pumping oil down the Trans-Alaska-Pipeline for 30-years plus, they have built into the “oil” tax code a very convenient incentive. Here it is in a nutshell. Oil companies don’t like natural gas! Don’t laugh. Natural gas sent topside is a commodity that needs no refinement, it works without any manipulation. Take a Coleman stove out to any producing oil well and the separated gas could easily fuel your desires to have a hot cup of tea, in no-time flat. But the oil that came out of the ground with that gas, it is worthless, until such time it is manipulated into a fuel. Crude oil is “black, gasoline is clear and you don’t accomplish this just by adding FDA approved food coloring! Now along the way from the well-head to the refinery gate, there comes available all kinds of opportunities for additives, not in the form of gasoline type additives, but in the form of “added value” costs associated with getting this black goop to market. So that is why the oil guys like it, as it is very easily manipulated which helps the bottom-line end result. With natural gas, it is very difficult to add hidden costs. So if a natural gas line did come to fruition, any gas that was taken away from the “Oil” leases, it would leave “oil” stranded, an ultimate Catch-22. See, all the gas that comes out of the ground up north, it is re-injected to set-free the oil. So when you hear the In-State Gas Caucus raving about their pipeline pipe-dream, think twice. They have been dishonest this endeavor, making it appear as though they are concerned about high energy costs to their constituents. With that, money is approved again and again with each passing budget approval to study the feasibility of a gas line, wherein critical time-lines come and go, legislative sessions come and go, and more and more money is wasted to keep the studies going. Yet we are no closer to a natural gas pipeline today then when the 1^st stick of pipe for the oil line was covered over. It is the typical project that grabs momentum and grows out-of-control Casey Jones like, except with a Bill Sheffield mentality at the throttle. And there is another disturbing thing that all Alaskans should come to grips with. According to laws enacted along the way, Alaska natural gas from the North Slope has “Export Limitations” on the law books right now. Laws that require a U.S. Presidential “Executive Order” in efforts to allow this valuable commodity to leave this state for another country. As the yet to be amended law stands, it can be exported to Canada or Mexico, but nowhere else at this time. And there is not a sitting U.S. President that would entertain changing this law, just too much of a gamble nowadays. Why? Just read the LAW. And taking into account that any export contracts would have to be long term to gain favor an export limitation ban, if a contract was signed and approved tomorrow and on the day after there was a national disaster declaration, the contracts could be null and void, and no businessmen would offer a potential buyer a contract with a “Force Majeure” clause embedded so. Which means that natural gas from the North Slope can only be used in state. Something all the politicians have been very quiet upon. See, now that Trans-Canada has become a lukewarm proposition, because of the glut of natural gas in the lower-48 due “Frac” work, there is no interest in a pipeline from Alaska to the states. For those interested in the LAW as it stands, here it is: Chapter 15C – Alaska Natural Gas Transportation Act, §719J – EXPORT LIMITATIONS: Any exports of Alaska natural gas shall be subject to the requirements of the Natural Gas Act[15 U.S.C. 717 et seq.] and section 103 of the Energy Policy and Conservation Act[42 U.S.C. 6212], except that in addition to the requirements of such Acts, before any Alaska natural gas in excess of 1,000 Mcf per day may be exported to any nation other than Canada or Mexico, the President must make and publish an express finding that such exports will not diminish the total quantity or quality nor increase the total price of energy available to the United States.” Now I have learned something from modern day politicians, even though they are supposed to be our servants well paid. When they have not an answer or would rather not give the correct answer, they retreat and enjoy the AWOL status. So all efforts to get a reading on this LAW with respect to the “Limitation” clause has gone without an answer. Why, as it is a very simple law? It's the influence of that “Big Bad Wolf”. And the fact that the “Stranded” issue has repercussions, wherein it is estimated that a world class sized Alaskan natural gas pipeline would so destroy the North Slope enhanced recovery oil production, it is estimated that the existing tax incentives that “Big Oil” would enjoy would trump any natural gas profits, basically this state would lose money when and if a natural gas pipeline becomes a reality. The only saving grace gas line remains a small diameter line feeding Fairbanks, as the amount of gas required to heat homes and fuel the local military bases finds a volume under the radar, so it would have no real effect on tax bashing and do what this resource is supposed to do, help the citizens. Visions of a “Big” natural gas pipeline delivering for export, it is not in this state’s best interest. Look, this state’s political body and bureaucrats are not being honest with us. Or, they are stupid and don’t understand the economics of necessity, and are inventing a facade of “Trust Us” to get the voters on their side, allowing for the justified spending a whole lot of loot that seems to be heading us “of record” in the wrong direction with respect to this “Stranded” gas for export. And then when someone realizes what all of this really means, it will become a litigation nightmare, and more money and time will be wasted away, because the politicians were stupid upon this issue. So here is the synopsis this fear. If you want the whole truth and nothing but the truth, ask an Alaskan cab driver what is going on, as at least the ride they take you on is genuine!