Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities
Could propane from Alaska’s North Slope reduce energy costs for electric utilities and residential space heating, water heating, and cooking demands? We explored the hypothesis that propane is a viable alternative for fourteen selected communities along the Yukon and Kuskokwim Rivers, coastal Alaska...
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Institute of Social and Economic Research, University of Alaska Anchorage
2010
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ftunivalaska:oai:scholarworks.alaska.edu:11122/4276 2023-05-15T17:05:40+02:00 Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities Schwörer, Tobias Fay, Ginny 2010-06 http://hdl.handle.net/11122/4276 en_US eng Institute of Social and Economic Research, University of Alaska Anchorage http://hdl.handle.net/11122/4276 Technical Report 2010 ftunivalaska 2023-02-23T21:36:12Z Could propane from Alaska’s North Slope reduce energy costs for electric utilities and residential space heating, water heating, and cooking demands? We explored the hypothesis that propane is a viable alternative for fourteen selected communities along the Yukon and Kuskokwim Rivers, coastal Alaska, and Fairbanks. Our analysis forecasts propane and fuel prices at the wholesale and retail levels by incorporating current transportation margins with recent analysis on Alaska fuel price projections. Annual savings to households associated with converting to propane from fuel oil can be up to $1,700 at $60 per barrel (bbl) of crude oil, and amount to $5,300 at $140 per barrel.1 Fairbanks residents would benefit from switching to propane for all applications at crude oil prices of $60/bbl. Interesting to note is that switching to propane for domestic water heating makes more sense at lower oil prices than conversions for home space heating. Three of the fourteen communities are projected to benefit from switching to propane for home heating at crude oil prices greater than $80 per barrel, and four communities at crude oil prices of more than $110/bbl. On the other hand, nine communities would benefit from conversion to propane for water heating as crude oil prices reach $50 and above. The realized household savings are also sensitive to assumptions surrounding the operating cost of the production facility and barge transportation delivery costs. Alaska Natural Gas Development Authority Introduction / Experimental Methods / Production and Storage / Transportation Costs / Electric Utility Energy Demand Assumptions / Household Energy Demand Assumptions / LImitations/ Extensions / Results and Sensitivity Analysis / Conclusion / References / Appendix: Associated Excel Workbooks Report Kuskokwim north slope Alaska Yukon University of Alaska: ScholarWorks@UA Fairbanks Yukon |
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University of Alaska: ScholarWorks@UA |
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English |
description |
Could propane from Alaska’s North Slope reduce energy costs for electric utilities and residential space heating, water heating, and cooking demands? We explored the hypothesis that propane is a viable alternative for fourteen selected communities along the Yukon and Kuskokwim Rivers, coastal Alaska, and Fairbanks. Our analysis forecasts propane and fuel prices at the wholesale and retail levels by incorporating current transportation margins with recent analysis on Alaska fuel price projections. Annual savings to households associated with converting to propane from fuel oil can be up to $1,700 at $60 per barrel (bbl) of crude oil, and amount to $5,300 at $140 per barrel.1 Fairbanks residents would benefit from switching to propane for all applications at crude oil prices of $60/bbl. Interesting to note is that switching to propane for domestic water heating makes more sense at lower oil prices than conversions for home space heating. Three of the fourteen communities are projected to benefit from switching to propane for home heating at crude oil prices greater than $80 per barrel, and four communities at crude oil prices of more than $110/bbl. On the other hand, nine communities would benefit from conversion to propane for water heating as crude oil prices reach $50 and above. The realized household savings are also sensitive to assumptions surrounding the operating cost of the production facility and barge transportation delivery costs. Alaska Natural Gas Development Authority Introduction / Experimental Methods / Production and Storage / Transportation Costs / Electric Utility Energy Demand Assumptions / Household Energy Demand Assumptions / LImitations/ Extensions / Results and Sensitivity Analysis / Conclusion / References / Appendix: Associated Excel Workbooks |
format |
Report |
author |
Schwörer, Tobias Fay, Ginny |
spellingShingle |
Schwörer, Tobias Fay, Ginny Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
author_facet |
Schwörer, Tobias Fay, Ginny |
author_sort |
Schwörer, Tobias |
title |
Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
title_short |
Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
title_full |
Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
title_fullStr |
Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
title_full_unstemmed |
Economic Feasibility of North Slope Propane Production and Distribution to Select Alaska Communities |
title_sort |
economic feasibility of north slope propane production and distribution to select alaska communities |
publisher |
Institute of Social and Economic Research, University of Alaska Anchorage |
publishDate |
2010 |
url |
http://hdl.handle.net/11122/4276 |
geographic |
Fairbanks Yukon |
geographic_facet |
Fairbanks Yukon |
genre |
Kuskokwim north slope Alaska Yukon |
genre_facet |
Kuskokwim north slope Alaska Yukon |
op_relation |
http://hdl.handle.net/11122/4276 |
_version_ |
1766060364090310656 |