Oil Sands Truth: Shut Down the Tar Sands

ConocoPhillips proposes natural gas Alaska pipeline to U.S., Canada

Look at their plans, and look at the future pipeline grid. It is not about only getting gas to the US to heat homes, it is also about expanding the tar sands to unfathomable levels. They lie. ConocoPhilips lies. TransCanada lies. Imperial Lies. Suncor and Syncrude lie. They are not our partners, they are our enemies. Be clear about that. They lie. These corporations are lying when they say that nuclear is not for tar bitumen expansion, they lie when they said that North Central was not about tar sands in the Athabasca, they lie when they tell us that the gas from Alaska is only for domestic US consumption.

They lie, then they lie more.
Speak truth to power and watch it wilt.

ConocoPhillips proposes natural gas Alaska pipeline to U.S., Canada
November 30, 2007

HOUSTON - U.S. oil giant ConocoPhillips (NYSE:COP) said Friday it plans to develop a multibillion-dollar pipeline that would transport natural gas from Alaska to the lower 48 states and Canada.

The oil exploration and production company said it's "prepared to make significant investments, without state matching funds, to advance this project."

ConocoPhillips spokesman Charlie Rowton said the company's best estimate for the entire project, including the pipeline from Alaska's North Slope to Chicago, is between US$25 billion and US$42 billion.

The pipeline would provide an important avenue for bringing Alaska's massive stores of natural gas to U.S. markets that rely on it for heating homes and other uses. It would move about four billion cubic feet of natural gas per day.

The U.S. consumed about 21.7 trillion cubic feet of natural gas in 2006, according to the Energy Department.

In a statement, ConocoPhillips chairman and dhief executive Jim Mulva said the company hopes to work directly with the state to advance the project as quickly as possible.

"We also expect to approach other parties to explore ways through which their participation could add value to this effort," Mulva said.

Specifically, Rowton said Exxon Mobil Corp. (NYSE:XOM) and BP PLC (NYSE:BP) would be logical participants as the project moves forward. Partnering with a pipeline company also is a possibility.

"We think it makes sense for there to be other owners," he said.

BP spokesman Steve Rinehart in Alaska said he couldn't speculate on whether the company would be interested in partnering with ConocoPhillips, but it had no intention of submitting its own bid. Rinehart added, however, "we think a successful gas project is very important."

Exxon Mobil said it had no comment.

ConocoPhillips said it is already gathering data to support the pipeline permit application.

During the initial phase of the project, Bechtel Oil, Gas and Chemicals Inc. will provide construction and design support, the company said.

Shares of ConocoPhillips rose one cent to $78.83 in trading Friday. The shares have traded in a range of $61.59 to $90.84 in the past year.

Friday was the deadline for applications from companies interested in building the pipeline.

Alaska Gov. Sarah Palin began calling for applications in July and extended the deadline by two months in August after more companies began to inquire. Oil and independent pipeline companies must outline details such as the pipeline's route, the market it will serve and how it can build a pipeline and avoid cost overruns.

Palin has said the gas-line project could one day be the economic life of the state, much like oil production in the North Slope is today.

But a potential multibillion-dollar pipeline also carries implications for North America's long-term energy supply and has been widely discussed by lawmakers, energy regulators and company executives throughout North America since Palin outlined her plans in March.

Palin has long warned the state and the nation cannot afford to let the natural gas supplies - estimated at about 35 trillion cubic feet on the North Slope - sit untapped any longer.

Alaska has struggled for decades to get a deal either with North Slope producers or independent pipeline companies to build a line that could possibly run from the North Slope through Canada and into the Midwest.

A proposed deal between former Gov. Frank Murkowski and North Slope producers BP, Exxon Mobil and ConocoPhillips fell apart last year.

In Canada, proponents of a C$16.2-billion rival natural gas pipeline down the Mackenzie Valley made one final pitch this weeek to a regulatory panel reviewing the plans, insisting that the pipeline would not only be environmentally benign, but would actually help fight climate change.

The Mackenzie Gas Project is being advanced by Imperial Oil Ltd. (TSX:IMO), its parent company Exxon Mobil, and others.


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