Trans-Alaskan pipeline could be 'doubled in the next 10 to 15 years'

"More elaborate" legislation is required to meet oil flow goals across Alaska, which could double in the next ten to 15 years, according to oil and gas consultant Pedro van Meurs.

Governor of Alaska Sean Parnell  hopes to increase one million barrels of oil a day across the Alaskan pipeline, but he will face significant fiscal and policy challenges if he is to hit this goal. According to van Meurs, the recent tax-cut bill "does not come close" to the measures that are required, calling for "more elaborate" legislation to increase the flow.

Currently, 600,000 barrels flow through the pipeline, which the governor hopes to increase by 400,000 barrels within a decade. This includes new production in legacy fields, drilling in the Arctic and also the federally controlled Arctic National Wildlife Refuge. Increased production is considered vital to Alaska's financial future, with around 90 per cent of the state's unrestricted revenue coming from oil taxes.

Parnell's recent house bill 110 cleared the state House last session but faltered in the Senate. Asked if he was still supporting the bill, the governor said: "Of course I am,"

"That's the only plan on the table that is actually a road map towards a million barrels of oil a day. It's the only plan on the table where industry has said where they'll put at least $5 billion of new investment on the table in the next three years. So of course, I'm going to stick with that plan."

Posted by Claire Manning