Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Economy May Tank Palin's $30B Pipeline

Governor's much-touted initiative could be derailed as gas, oil prices fall

By Harry Kimball,  Newser Staff

Posted Nov 19, 2008 2:50 PM CST
Email

(Newser) – A sour economy and tumbling oil prices might sink Sarah Palin’s oft-touted Alaskan natural-gas pipeline, the Wall Street Journal reports. Low prices and increased natural-gas production in the lower 48 are causing energy companies to reconsider the $30 billion project. Without the revenue-generating pipeline, Alaskans who depend on the state’s dividend checks might soon actually be paying taxes themselves.

The state-sponsored pipeline was to funnel gas from large energy concerns in the north of Alaska, but so far no one has signed on. The Canadian developer needs guarantees from customers before it starts construction, but a state senator was pessimistic about the chances: “It is going to be economics that drive this process and not how much we want it to happen.”

Alaska Gov. Sarah Palin announces the companies who applied to build the state's gas pipeline.
Alaska Gov. Sarah Palin announces the companies who applied to build the state's gas pipeline.   (AP Photo)
Palin and other Alaska officials answer question during a news conference in Anchorage, Alaska, after Palin began calling for applications to build a natural gas pipeline.
Palin and other Alaska officials answer question during a news conference in Anchorage, Alaska, after Palin began calling for applications to build a natural gas pipeline.   (AP Photo)
A map locates the proposed pipeline project that will run from Alaska to Alberta, Canada.
A map locates the proposed pipeline project that will run from Alaska to Alberta, Canada.   (AP Photo)
The Trans-Alaska pipeline snakes its way across the Alaska wilderness about 70 miles north of Fairbanks.
The Trans-Alaska pipeline snakes its way across the Alaska wilderness about 70 miles north of Fairbanks.   (AP Photo)
A new oil transit pipeline runs across the tundra to the Prudhoe Bay oil field on Alaska's North Slope.
A new oil transit pipeline runs across the tundra to the Prudhoe Bay oil field on Alaska's North Slope.   (AP Photo)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Showing 3 of 4 comments
Shannonals
Jan 8, 2009 10:34 PM CST
I'm amazed Corona_king hasn't made any comments on this article, seeing as how he idolizes her
carol
Nov 20, 2008 6:28 AM CST
Oil prices will definitely go up. OPEC is already making noise about decreasing production. How are we going to become oil dependent if we don't increase our own resources?
Shannonals
Nov 20, 2008 12:54 AM CST
And would paying taxes actually hurt Alaskans?

Another hurdle: native populations
Newsweek

The pipeline would be great (if built)
US News & World Report

A history of Palin's pipeline project
Time

 
oil • Alaska • Exxon • ConocoPhillips • natural gas • gas pipelines • Sarah Palin • economic downturn

More Newser Stories

Things Congress Talks About: Caribou Sex

'Hollywood Bristol' Packs Up, Heads Home

Drunk Wasilla Pol Trashed Hotel, Billed City

Alaska Paying to Help Defend Palin in Lawsuit

Sarah Palin's Hair Salon Gets Reality TV Show
NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne