Jack Hartz, senior reservoir manager for the Alaska Oil and Gas Conservation Commission, told those present that of the known gas reserves, 30 trillion cubic feet of gas could be produced, excluding the potential for undiscovered gas.He
said that would sustain the pipeline for enough time to make it economically viable.
The commission is a state judicial agency that monitors resource recovery in Alaska.It regulates drilling for oil and gas producers in the state.The agency is outside of the political influence and is concerned with maximizing resource recovery, he
During the presentation, Hartz
dispelled concerns that oil production would burn up most of the gas, explaining there are plenty of reserves to ship gas south.There is a concern that producing gas for a pipeline could cut into oil production, he said, adding there needs to be a carefully researched plan to maximize production of both.
It will be the job of the commission to develop this plan, he
In recent years, there has been an increased interest in Alaska gas production as the market points to a sustained increase in natural gas prices, Hartz
"The supply needs to be expanded to meet the demand," he
said, adding that new companies are interested in looking for gas to meet this demand.Hartz
said building a pipeline would provide incentive for more companies to begin gas exploration.In the past, oil prices have been considerably higher than gas prices, but the value of gas and oil has equalized making a gas pipeline economically wise, he
is sure a pipeline will be developed.
"It's just a matter of time," he