Hike planned for Alaska pipeline
Oil companies say they will charge up to $1.50 more to ship a barrel of oil down the TransAlaska pipeline from Prudhoe Bay to Alaska's Valdez, starting Jan. 1, according to a report in the Anchorage Daily News.
The paper said that according to Federal Energy Regulatory Commission filings, the three major owners of the pipeline have announced increases as follows: Conoco Phillips, from $3.78 to $5.29, BP from $4.08 to $5.10, and Exxon Mobil from $3.93 to $4.95.
BP owns half the line, while Conoco Phillips has 24 percent and Exxon
Mobil holds 20 percent. Smaller owners are also planning increases.
The companies say the increases are needed because declining North Slope production means the cost of operating the pipeline must be spread across fewer barrels.
The Alaska’s state government is challenging the increases at FERC as excessive. The state has an interest in keeping the rates as low as possible because the oil tax it collects is based on the value of oil after transportation costs. Higher pipeline tariffs reduce the state government’s income.
Hike planned for Alaska pipeline
