Daily Archives: August 27, 2010

Closing 8/27/2010 Estimated Alaska North Slope Oil & Gas Netback Values

Day Oil Gas (AGIA) Gas (Valdez LNG)
8/27/2010 $67.77/BOE Minus $2.90/BOE

Estimated Alaska Oil & Gas Values

Estimated Alaska North Slope Netback Values:

Day Oil Gas (AGIA) Gas (Valdez LNG)
8/26/2010 $65.81/BOE Minus $3.02/BOE
8/25/2010 $64.92/BOE Minus $2.67/BOE
8/24/2010 $64.20/BOE Minus $2.44/BOE
8/23/2010 $65.70/BOE Minus $2.73/BOE

An Explanation of A New Approach to Estimating Alaska Oil & Gas Values

In an attempt to compare alternative futures for Alaska on an apples-to-apples basis, this page will start carrying, on a trial basis, weekday comparisons of the netback value of Alaska oil (generally, the starting value used for royalty and tax purposes) and an approximation of what the netback value of Alaska gas would be under AGIA, expressed on a barrel of oil equivalent basis.

This is somewhat similar to the information currently being posted with some regularity by the Alaska House Majority on Twitter, at http://twitter.com/houmaj, but the effort on this page will be focused on reporting the prices on an apples-to-apples basis using “barrel of oil equivalent” as a common measure and using criteria for gas that attempts to create a netback to the Alaska North Slope, rather than, as the House Majority reporting does, focusing on the Henry Hub price.

The netback value of oil will be taken from the daily reported price for Alaska crude (the same as used by the AK House Majority), net of transportation costs included in Department of Revenue’s semi-annual reports and forecasts. The netback value of gas will be taken from the daily reported price for gas at the same Canadian Hub to which TransCanada’s AGIA line proposes to deliver Alaska gas, net of the transportation cost proposed as part of TransCanada’s Open Season plan. (Currently, the netback value is negative, and will be reported as a loss which would be borne by TransCanada’s shippers.) Continue reading