Alaska Dispatch

Gov. Sean Parnell spent less than four minutes welcoming oil and gas industry professionals attending a three-day conference, noting Alaska's rich resources and calling for responsible development that drives the economy.

"We are rich in oil and gas, minerals, just the wealth and bounty of this earth are reflected in the soils of our state and the seas of our state," Parnell said at a reception kicking off the conference.

He said he'll be traveling to Washington, D.C., this week to meet with Interior Secretary Ken Salazar to promote opening Alaska's offshore areas to oil and gas exploration and development.

He also stuck solidly behind the Alaska Gasline Inducement Act, which licensed TransCanada as a partner with the state to construct a large-diameter natural gas line between the North Slope and markets Outside. TransCanada also gained $500 million in state funds for early work on the project.

"Commercial deals take a long time ... But more than ever, this is an opportunity for growth and opportunity here in this great land where we live," he said.

Parnell has a history in the industry, first with ConocoPhillips, then as a lobbyist, and finally as deputy director of the state's Division of Oil and Gas during the Frank Murkowski's administration. At that time, Parnell was closely involved in negotiations with TransCanada on a gas pipeline plan.

Skeptics say the prospects for actual construction of a large-diameter pipeline between Alaska's North Slope and Lower 48 markets is falling alongside the record-low natural gas prices in the U.S., and that the rest of the world has more than enough gas to fuel its needs for now without tapping into Alaska's supplies - made more expensive by the cost of transporting the resource several thousand miles.

In its fifth year, the Alaska Oil and Gas Congress gathers industry leaders to weigh in on the issues of the day - this year, that means natural gas pipelines and off-shore development. At nearly $2,900 for participation for the full three days, the event draws mostly oil and gas company employees, government workers and staff from engineering, construction and manufacturing firms.

American Conference Institute of New York and The Canadian Institute, headquartered in Toronto, are sponsoring the event. The agenda is packed with sessions updating the two large-diameter pipeline proposals, as well as instate natural gas work and explaining AGIA. Thursday, the focus shifts to Canadian issues, including Yukon-Alaska relations and regulatory systems.