Uncertain future for Alaskan gas

JUNEAU, Alaska, July 13 (UPI) -- New technologies to unlock gas from shale deposits from the Lower 48 and declining prices make predictions on Alaska's potential uncertain, analysts say.

Technological advancements for the extraction of gas from shale deposits make the resource more attractive. The sagging economy, however, has suppressed energy demand, making commercial extraction questionable for the time being.

Meanwhile, Alaska hopes to build an ambitious gas pipeline network from the North Slope to markets in the Lower 48 by 2018.

While short-term interest in shale deposits puts a damper on immediate plans for North Slope projects, analysts say the outlook beyond 2018 is unclear, the Anchorage Daily News reports.

"Anything could happen between now and then," said petroleum engineer Gary Long, who advises the U.S. Energy Information Administration.

The EIA said gas demand in the United States could increase by 2.5 trillion cubic feet over the next three decades, leaving Alaska as a viable energy option, the Daily News reports.

Alaskan Gov. Sarah Palin, who announced her early resignation July 3, touted as one of her major accomplishments efforts to move ahead with the Alaskan pipeline. Lt. Gov. Sean Parnell, her replacement, pledged to continue that work when he assumes office July 26.