Unconventionals boom puts Arctic pipe plans on ice
North America’s shale gas revolution has stymied plans for two multi-billion dollar pipelines to tap Alaska’s North Slope and Canada’s Mackenzie Delta
Once at the forefront of North America’s natural-gas ambitions, the economic viability of both projects is now under question given the glut of unconventional production in the Lower 48. To underscore the point, natural-gas prices fell to decade lows in New York this week, barely above $2 per million British thermal units (Btu). At those levels, a $30 billion pipeline from Alaska is a moot point; the same holds true for a smaller, C$16 billion ($16.07 billion) Mackenzie Valley line from Canada’s Beaufort Sea to Alberta’s oil sands. As Lower 48 gas output continues to increase, Alaskan gas is becoming less of a priority for the big reserves holders, which include ExxonMobil, BP, and ConocoPhi
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