Exxon and Alaska..... not a happy union by any means.

Exxon and TransCanada…. Interesting development today.

Ok so now that Exxon has “bought in” with TransCanada on the LNG Pipeline to go into Canada and further down, now what? What I am curious about is what is the percentage of Exxon into this pipeline? Personally I am thinking 35-45%, or they wouldn't do it. What is the contract with each other? How much is each going to get depending on the design, amount, rotation of profit, measurements on engagement, the actual cost, the ratio of cubic square liquid to actual cubic square gas. I don’t know about you but something sounds… fishy.

And what bothers me even more is the Spur AND a Bullet line off this. Denali better get on the ball and fast if it wants to be taken seriously.

I applaud Governor Palin on this as the Gas Team and the AGIA Team worked hours taken away from Family and such. But I don’t trust Exxon…. In any capacity.

Exxon is notorious for sitting on things, letting it brew I guess you can say. The appeals of the Exxon Valdez spill almost 20 yrs says quite a bit about the company, as many fishermen and villages are STILL waiting for the money in which the Exxon Valdez took from them via subsistence. Also sitting on PT. Thompson Unit and sitting on it for over 20 yrs now until just recently via a suit from the State of Alaska, makes one wonder. The excuse was that the oil wasn’t viable enough to connect and since the gas would be trapped and not be able to go anywhere, and they as a company would lose money on the wells and leases. So rather then do anything, they just sat on it. Tisk Tisk Exxon!

Exxon is also not an oil and natural gas company that drills. They usually pony on another company after they buy leases for land and the pony company does all the work, so to speak, so while the pony company gets the oil, Exxon usually goes for the gas. I wonder why? Exxon doesn’t actually own any equipment… that I know of. It reminds me of an investment company if anything. Yet since it does partially own wells around the world, it does make money, the highest ranking in the world.

Now someone pointed out something significant to those smaller individuals whom own gas wells around the United States. How is this going to affect them? Is this going to spike gas prices and stock? Is this going to lower gas prices and is the stock going to spike? Or is it going to lower gas prices and stock now? Too many variables and I am not an economics guru. How will this affect UIC (Underground Injection Wells) wells since the North Slope uses the natural gas to re-inject back into the formations? Will UIC wells stopped being used or will something like CO2 be used instead?

Also... just for those Alaskans curious. What do you think the Legislature will do with the new found "monies" coming in from any of the LNG pipeline with the now non-stranded natural gas which up until 2005 was concidered "confidential"? Do you think it will be put into a different PFD type for us, or do you think it will be put into a "fund" for spending? I think the latter as we all know our Legislature. I hope AGIA gets a say and does the RIGHT thing.

Another thing about Exxon, they are notoriously sue happy. Read this about Exxon suing in 1983, a PIPELINE COMPANY.

You don’t feed the dog that bites you, especially if it bites your kids … aka the Alaskans. Most people I know would put that dog down. This is something new.... and I am not just leary, I think Alaska is about to get shit on by Exxon.