Hearing of Joint Senate Committee on Energy and Natural Resources and the Commerce Committee
Hearing of Joint Senate Committee on Energy and Natural Resources and the Commerce Committee
SENATOR MURKOWSKI PRESSES OIL COMPANY EXECUTIVES TO REACH GAS LINE AGREEMENT
Sen. Lisa Murkowski today pressed executives from Exxon Mobil and British Petroleum to reach a firm agreement with the State of Alaska on the construction of a natural gas pipeline.
Murkowski applauded ConocoPhilips for reaching a tentative gas line agreement with the State and questioned the Exxon Mobil and British Petroleum executives at a joint Senate hearing of the Energy and Natural Resources Committee and the Commerce Committee called to examine the record profits enjoyed by oil companies this year and the high cost of energy across the country. "Alaska has 35 trillion cubic feet of known natural gas reserves just waiting for a means and a mechanism to get to market," Murkowski said. "People were shocked with the hit in the price of gas at the pump, but I think it's fair to say that, this winter, there will be an equal, if not greater shock when people look at their natural gas heating bills."
In a question to the panel of oil executives, Murkowski asked what, "Given the third quarter profits that exceed the estimated $20 billion cost of the entire gas pipeline project, what is holding Exxon and B.P. up from reaching a firm agreement with Alaska and committing to build this very needed pipeline?"
Lee Raymond, chairman and chief executive of Exxon Mobil, responded saying that, "the specific issues that are out there, I think, are more appropriately handled between the Governor and the people up there who are trying to negotiate it. I think the intent, as we've had for a long time, is to come to a successful conclusion but it is absolutely critical from our point of view that all the elements of the agreement are clear and the interaction between the gas operation and the oil operation at Prudhoe also be clear."
Ross Pillari, president and chief executive officer of B.P. America Inc., responded similarly. "I think progress has been made," he said. "We would like to see this pipeline built. I think every company approaches a negotiation in a different way. We would like to see all the details resolved before we agree to go forward. But we agree that this project is a good project and we believe it will get done shortly."
Murkowski suggested to the executives that Americans who are looking for a cheaper supply of natural gas may start to question the length of the negotiations if a deal is not reached soon.
"It may cause some here in Congress to question or revisit some of the incentives that we moved forward just last year to help facilitate this project. I don't want to be sitting here in another hearing a year or two from now asking what happened, why have you not participated?
"We recognize that it will take a while to get the gas online, but we've got to get going sooner than later."
http://murkowski.senate.gov/pressapp/record.cfm?id=248530