Parnell to Salazar: OCS Critical to Viability of TAPS

Less than two weeks from now (Sept. 21), the Interior Department will formally close the public comment period governing the development of our country’s new five-year energy plan – concluding what has been an unnecessarily contentious process from the get-go.

Fans of this site will remember that, on February 10, 2009, Secretary Salazar announced he was extending this comment period by an additional 180 days, ostensibly for the purpose of holding a series of field hearings at which the American people could make their views known on the dimensions of the plan.

At least that’s what his press release said. In reality, it’s widely accepted that the real reason for kicking the can down the road an extra six months was to ice out proponents of responsible offshore exploration, and just as important, give opponents extra time to rally their forces and ultimately win the comment period. Win the comment period, from his perspective, and he’d have all the justification he needs to toss out the Draft Proposed Plan and start again from scratch – with the new version of the plan essentially codifying the existing de facto ban on accessing America’s offshore resource base.

Whether or not the outcome of the comment period has been predetermined, time will certainly tell. But Alaska governor Sean Parnell isn’t about to sit idly by and let the process proceed without registering his state’s views on the imperative of Alaskan OCS energy development.

In a letter sent to Salazar last week, Parnell lays out in clear detail what Interior has on its hands in the federal portion of Alaska’s offshore waters, noting also how this energy can complement the president’s plan to promote an “all of the above” vision for America’s energy future:

A comprehensive energy future must include oil and gas, in addition to conservation and greater reliance on renewable sources. Alaska accounts for a significant percentage of the nation’s technically recoverable oil and gas resources, including an estimated potential of 27 billion barrels of oil and 130 trillion cubic feet of natural gas in the Alaska OCS alone.

But the Parnell letter is more than a simple laundry list of the number of jobs, units of energy and measure of energy security that can be obtained through the safe exploration of Alaskan resources. He also takes great care to explain to the secretary the relationship between the development of these energy reserves and the continued well being of the Trans-Alaska Pipeline System (TAPS), a conduit through which more than 15 billion barrels of secure American energy has made its way to the U.S. mainland.

At its peak in 1988, the 800-mile pipeline transported 2.1 million barrels of oil a day, or approximately 24 percent of the nation’s crude oil production. In February 2009, the pipeline carried on average 14 percent of the nation’s crude oil production, and throughput is now 680,000 barrels per day and falling at an average of 4.95 percent per year.

We are quickly approaching the minimum throughput rate, beyond which the flow of oil cannot be maintained. Without development of new sources of Alaskan oil, TAPS could shut down within the next decade. New sources of oil must be discovered now in order to realize production in time to sustain TAPS operations and provide oil to the nation beyond the immediate future.

Here’s an element of the debate that heretofore has been lost among policymakers from the Outside. Plainly put, the pipeline was not designed to send a trickle of energy down the pike – it was designed to send millions of barrels a day. Dip below a certain minimum rate, and the thing just won’t work – a function of simple (it’s actually not so simple) physics and liquid dynamics.

So, OK: The pipeline currently sends down around 680,000 barrels of oil a day. How much lower can it afford to go? The state of Alaska tells us:

Recent studies projecting when the TAPS pipeline might shut down have variously estimated that the minimum technically feasible sustainable TAPS throughput … is in the range of 0.2 to 0.6 million [barrels a day].

Catch all that? Drop below 600,000 barrels a day, and all of a sudden, you find yourself in serious danger of rendering the thing inoperable. Render it inoperable, and the laws on the books say it needs to be torn down. Tear it down, and you no longer have a means of utilizing the vast majority of Alaska’s energy. And that’s an eventuality that seems to suit opponents of responsible energy development just fine.

Starting to understand the implications of this previously obscure comment period? In a very real sense, the future of our pipeline – and the American economy at large – depends on it. Kudos to Gov. Parnell for seeing the big picture here. And shame on us if we remain silent on this new five-year plan in the 12 days we have left before the comment period closes. Click here to participate.

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