Thursday, June 11, 2009

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.


  1. I want to be happy about this announcement, but this IS Exxon we are talking about. They simply can't be trusted.

  2. Jamie.. I am thinking more Alaskans are thinking like I am.

    Everyone else in the country is celebrating.. as we are just in shock.

  3. I think any alliance including Exxon is a bad deal all the way 'round; and it doesn't bode well for Alaskans, period. For all we know, Exxon is out for revenge after "losing" on the Valdez spill ... even though they have yet to pay anywhere near what they really owed.

    Either way, I hope the State & TCAlaska have someone watching their backs.

  4. Paul, yep.. I am thinking the same thing.

    Exxon is going to "get Alaska back" for screwing with them on Exxon Valdez and Pt Thompson.

    Something is going to give.

  5. Paul I told my BF what was going on as he was out and about today getting stuff ready for a special trip he is doing. He about flipped out about it.

    Piney, Kenton or any other Alaskan passing by... if you happen to read this. What do you think? I am curious on the Alaska aspect.

  6. Just now getting here to read comments, upinak.

    I would rather the agreement had been with anyone other than EM, but it is a done deal.

    We know there needs to be a gas line. Unfortunately, we no longer have a choice of who partners with whom.

    I wonder if the gov tried to make EM pay up for the Valdez fiasco before they could get their grubby mitts on any gas? That would surely have been a feather in her cap.

    Jobs are good. The gas line is good. The ability to do it without fed dollars is very good.