Engineer Says Gas Shortfalls Are Likely

Concerns are continuing over the current rate of gas production. Petroleum Engineer Peter Stokes spoke during today’s meeting of the Kenai Chapter of the Alliance, saying he felt shortfalls are likely…

 

Stokes: “As reported in our study, what we’re seeing with the current level of development and success with bringing new gas completions on, we’re probably not going to meet this near-term shortfall, with current level of activity. Now, if we have some huge amazing discovery that’s right near infrastructure, if we had another 4 or 5 Cannery Loops for example coming online in the next couple years, that would probably allow us to avoid that, but unfortunately most of these on-shore prospects near infrastructure have already been explored and developed, so there’s not a lot of those out there.”

 

Stokes said it’s more likely big discoveries would be offshore, which would require extensive permitting and construction and take too long to meet the likely shortfall. Stokes also commented on how all of this would affect the local area…

 

Stokes: “The utilities have been looking at this for several years. We did the original study for them in 2010, we updated it this year in 2012. Meanwhile  they are currently studying how to bring gas in to meet their needs, because they’re concerned they wont’ have enough gas for heating and/or generation electricity. Some of the generators, the ML&Ps, the Chugach Electric, they have some option of being able to go to liquid fuel, but by and large it’s not going to replace all of their generating capacity and liquid fuel is very expensive.”

 

 

Studies are continuing into what the financial impact will be.

Categories: News

About Author