>>What we should be asking the Administration and other State Govs.... WHY is this the end result: The natural gas will be re-injected back into the ground, because there's no gas pipeline to ship it to market.<<
Why do you think it's the government's concern or responsibility? Exxon would need a hugely expensive pipeline to market the gas, and in the USA pipelines are normally developed by private enterprise. Oops, the government is already involved...
The US Senate is considering an increase in the government loan guarantee for the Alaska gasline, from $18 billion to $30 billion. Alaska Governor Sarah Palin is chipping in $500 million from the State of Alaska as seed money to get the project moving. And pipeline licensee Trans-Canada Inc. is hinting about the need for a potentially astronomical US government loan or guarantee in case of problems with the upcoming "open season" in 2010, to establish long-term contracts for gas delivery. Oh, and Obama made a campaign promise to finally get the thing built.
What do you think of all this massive government involvement in the marketplace that Obama and Palin are rooting for? I hope you realize that these government guarantees are potential massive bailouts waiting to happen, just like all the other bailouts we've been seeing lately.
U.S. loan guarantees for Alaska pipeline worry Mackenzie line supporters
Last Updated: Wednesday, May 27, 2009 | 4:29 PM MT
Those who support a proposed natural gas pipeline through the Mackenzie Valley in the Northwest Territories are worried that a competing pipeline in Alaska is getting an unfair advantage, thanks to the U.S. government.
The U.S. is looking at increasing loan guarantees, from $18 billion to $30 billion, for the proposed Alaska Highway pipeline project. If built, the 2,760-kilometre pipeline would run from Alaska's North Slope to Alberta, and to markets throughout North America.
more: cbc.ca |
