Is the Trans Alaska Pipeline System in Danger of Being Shut Down?

September 20, 2011

In this report we analyze whether the Trans Alaska Pipeline System (TAPS) is in danger of being shut down due to declining throughput. We first provide background information on TAPS, including the operating challenges that TAPS has faced thus far, forecasts of TAPS future throughput and its estimated useful life with and without additional investment in the pipeline. We then assess the Low Flow Impact Study ("LoFIS") recently released by the Alyeska Pipeline Service Company ("Alyeska"), the owner of TAPS. Finally, we analyze the projected economic benefit to the pipeline owners from making an investment in the pipeline in order to reduce the minimum throughput.