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
Alaska Gov. Sarah Palin announces the companies who applied to build the state's gas pipeline.   (AP Photo)
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(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.”