Jockeying for position : how the proposed pipeline projects and route-on-route competition are shaping up in the Arctic

This presentation included a brief historical look at pipeline proposals submitted over the years to bring Alaska and Northwest Territories gas to market. The challenges facing the early proponents of a pipeline from Prudhoe Bay to the Mackenzie Delta, such as cost, environmental impact and socio-economic impact on Aboriginals living in the Mackenzie Valley, have now been removed. Lobbying efforts by politicians in Alaska nearly succeeded in forcing an Alaska Highway gas pipeline, instead of letting market economics dictate the route. The author indicated that an Alaska pipeline would not benefit the Canadian natural gas industry, rather it would force production from the Western Canada Sedimentary Basin (WCSB) to be slashed, resulting in reduced drilling and lower royalties to government. The author suggested that Canada should not grant any permit to construct a pipeline in Canada that is destined for markets in the contiguous United States if the pipeline was in any way subsidized to disadvantage Canadian producers. The author explained why the proposal to build a standalone pipeline in the Mackenzie Valley before the Alaska Highway pipeline is not a good idea. Gas prices and pipeline tolls are the most important economic elements. The author expressed the opinion that the over the top route combined with the Mackenzie Valley route would be beneficial to both Canada and the United States for a host of reasons. figs