Oct. 21, 2008

Palin Backed Shipping Natural Gas To Japan

Despite Campaigning On Increased Production To Gain Energy Independence, Gov. Favored Increased Exports

  • Jim Bowles, president of ConocoPhillips Alaska Inc., answers questions during a Jan. 3, 2008 press conference in Anchorage, where Alaska Gov. Sarah Palin announced an agreement between the state of Alaska and the oil industry to extend the federal license for the LNG plant on the Kenai Peninsula to export energy to Japan.

    Jim Bowles, president of ConocoPhillips Alaska Inc., answers questions during a Jan. 3, 2008 press conference in Anchorage, where Alaska Gov. Sarah Palin announced an agreement between the state of Alaska and the oil industry to extend the federal license for the LNG plant on the Kenai Peninsula to export energy to Japan.  (AP Photo/Al Grillo)

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(AP)  On the campaign trail, Sarah Palin says repeatedly that America must tap its own natural gas and oil reserves to become energy-independent.

But the Alaska governor and GOP vice presidential candidate has pushed the federal government to allow a liquefied natural gas plant to continue exporting to Asia - the only such plant in the United States that sends the product overseas.

"When we talk about energy, we have to consider the need to do all that we can to allow this nation to become energy-independent," Palin said earlier this month during the vice presidential debate.

"It's a nonsensical position that we are in when we have domestic supplies of energy all over this great land. And East Coast politicians who don't allow energy-producing states like Alaska to produce these, to tap into them, and instead we're relying on foreign countries to produce for us."

This summer, Palin cheered the Energy Department for extending an export license for the Kenai Liquefied Natural Gas facility. The license allowed the Alaska plant to continue shipping its products to Asia through 2011.

The plant began shipping its product exclusively to Japan in 1969, renewing federal export permits every few years. As energy prices have soared in recent years, and with supplies dwindling, there has been increased opposition to allowing the plant to export.

The current license extends a permit that otherwise would have expired in 2009.

"In these times of economic uncertainty, this is great news for the state and its residents," Palin said when the license was approved in June.

During negotiations, which began last year, Palin had pressed for enough natural gas to serve Alaska to remain in-state. She added, however, that the rest should be shipped primarily to Japan.

The license was granted despite opposition from some federal officials who argued that domestic liquefied natural gas should be sold within the U.S.

"If America is really so short of energy that we need to drill in national wildlife refuges and other sensitive areas, why should energy supplies, sitting in U.S. terminals, be sent back out of the country simply because these energy companies can get a higher price from a foreign buyer?" Sen. Ron Wyden, D-Ore., said.

Quote

If America is really so short of energy ... why should energy supplies, sitting in U.S. terminals, be sent back out of the country simply because these energy companies can get a higher price from a foreign buyer?

Sen. Ron Wyden, D-Ore.
The plant's owners, Marathon Oil Corp. and ConocoPhillips, had argued that U.S. terminals equipped to handle shipments of liquefied natural gas were too far away, on the East Coast, in the South or in Puerto Rico.

San Diego-based Sempra Energy opened a new $975 million terminal in Baja, Mexico, in May. Its pipelines connect to California, Texas and Arizona.

Volatile oil and gas prices and limited energy supplies have prompted a steady increase in U.S. use of liquefied natural gas.

But aside from Alaska, there is no domestic production.

So while the United States imported 771 billion cubic feet of natural gas last year from Trinidad and Tobago, Algeria, Egypt, Equatorial Guinea, Nigeria and Qatar, Alaska is expected to export 100 billion cubic feet to Asia over the next two years.

By AP National Writer Martha Mendoza
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Add a Comment See all 14 Comments
by pasuquin61 October 22, 2008 6:24 AM EDT
There you palin a big liar and hypocrite. I don''t think she understand her script because somebody is making for her. Palin was worried the comment of Joe Biden. She how naive she was. Anybody who will win this election it will be huge challenge for them wether democrats or republicans because of the mess that Bush left behind. Good Luck Democrats.
Reply to this comment
by bailmeout1 October 22, 2008 5:33 AM EDT
Maybe Palin needs to build a pipeline down to the lower 48, so Alaska can sell it here. (eye roll)
Reply to this comment
by doctajim October 22, 2008 4:05 AM EDT
Every time I hear another Republican excuse for corrupt, illegal, unethical behavior - all with the air of elitism, I truly wonder if true Nazi evil has overtaken the GOP. P.J. Goebbels is alive and well and directing their efforts: 1/29/42 - "Propaganda must therefore always be essentially simple and repetitious. ...he will achieve basic results ... who is able to reduce problems to the simplest terms and who has the courage to keep forever repeating them in this simplified form despite the objections of the intellectuals."
William Shirer 1/23/36 - "The stories were so exaggerated and so libelous I could not control my temper. No one had the power or decency to correct a piece of propaganda once it had been launched, regardless of how big the lie."
Reply to this comment
by misha128-2009 October 22, 2008 3:20 AM EDT
This was before she told us all it was illegal to export Alaskan energy products. Of course she was wrong about thw export being illegal too -- the export controls were lifted in the 1990''s.
Reply to this comment
by ksh1022 October 22, 2008 2:35 AM EDT
So let''s see, the US sold gas to Japan while we bought gas from Trinidad, Egypt, Algeria, Guinea, and Quatar. That''s just stupd! I''ll bet we paid way more than we made. But those poor oil companies need to keep sending campaign donations to McCain and Palin.They''ve got to make money somehow. Of course Palin says "drill baby drill" and touts "energy independence". We aren''t very independent or smart when we have to buy the same stuff that we are selling to Japan. I know, maybe Palin thinks Quatar and Algeria are part of the USA. She''s George W. Bush in lipstick!
Reply to this comment
by claydowner October 22, 2008 1:45 AM EDT
American natural gas should never be sold to Japan under any circumstances. Again why should we drill in ANWR or offshore in wildlife areas? We need to have some facility to handle natural gas on the West Coast. Anyway, Palin''s stance on natural gas sales to Japan really makes them hypocrites to the highest degree. Cries in St Paul of "drill baby drill" also are a contradiction of practice versus policy. This is another example of why McCain-Palin needs to lose this November 4th.
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by troutfisher4 October 22, 2008 12:06 AM EDT
If you liberals ever ran a business or had a REAL job you would understand how much sense that makes.

Posted by opedanderson


if you conservatives had even half a brain, you would realize this makes no sense.

Except to the oil companies making record profits, of course.


Reply to this comment
by opedanderson October 21, 2008 11:20 PM EDT
Hey!

I think it''s an excellent idea to export to Japan!

Typical Dem reponse: "....simply because these energy companies can get a higher price from a foreign buyer?"

If you liberals ever ran a business or had a REAL job you would understand how much sense that makes.
Reply to this comment
by hypnotoad72 October 21, 2008 10:37 PM EDT
Hey, it''s just business.
Reply to this comment
by tburzio October 21, 2008 10:24 PM EDT
We ship oil and gas to Japan, and then Japan buys replacements on the market for us for delivery in Louisiana. This relieves Japan of shipping their oil and gas past Malaysia and China, which we would have to protect with our navy.
Reply to this comment
by October 21, 2008 9:48 PM EDT
And East Coast politicians who don''t allow energy-producing states like Alaska to produce these, to tap into them, and instead we''re relying on foreign countries to produce for us."
---
Maybe those East Coast politicians have the right idea after all. If the only state in the nation that produces the product keeps only enough for itself and sells the rest to a foreign country, why should the East Cost, West Coast, Midwest, Gulf Coast or the Great Lakes give a hoot about developing Alaskan products? Sounds like Sarah''s new slogann should read : "Alaska First, Japan Next, America Also-Ran."
What''s Wendy Waitress and Phil Bricklayer and Tito the Builder and George the President going to say about this? We know what Joe the Plumber would say: How can I buy that business without paying any taxes?
Reply to this comment
by recession1 October 21, 2008 9:43 PM EDT
OH NO!! NOT THE MAVERICK SARAH PALIN.. I THOUGHT SHE WAS SUCH AN ENERGY EXPERT??!! WHAT A JOKE, WHO BELIEVES ANYTHING SHE HAS TO SAY AT THIS POINT?? THE REPUB NOMINEE FEELS THAT SHE IS READY TO HOLD A POSITION THAT IS ONE BREATH AWAY FROM RUNNING THE COUNTRY THOUGH RIGHT??!! GIVE ME A BREAK PLEASE!!
OBAMA/BIDEN 08!!
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by truthspeake2 October 21, 2008 9:22 PM EDT
I bet this story won''t make it to the so-called "liberal media" networks tonight...
Reply to this comment
by ramos937 October 21, 2008 9:11 PM EDT
That is not even the half of it. For years, the crude flowing through the Alaska Pipeline has been sold to Asian markets instead of used in the lower 48 states.
Guess where the "new" crude from off shore drilling will go to?
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