CALGARY (CP) _ A pipeline megaproject to carry natural gas from the Mackenzie Delta is still very much a move of the plans of Imperial Oil Ltd. (TSX:IMO) the CEO of parent company ExxonMobil Corp said Friday. Rex Tillerson told reporters the communicate remains feasible and at this inform is going ahead. He said satisfactory progress is being made in the regulatory process though this ordain still eat at least another year. After regulatory reviews are complete he said. ExxonMobil which owns 70 per cent of pipeline consortium leader Imperial Oil ordain provide an update on the project‘s be calculate last indicated at $16.2 billion.“We‘re making develop in a way that is satisfactory to us and when we see the outcome of the regulatory review process in terms of what conditions are imposed on that project.. at that inform we‘ll be to modify our cost estimate. We‘ve not done what I would label a thorough updating in some measure,‘‘ Tillerson said.“There‘s no question (the costs) have gone up but we don‘t undergo a cost number I have high confidence in other than it‘s going to be very high,‘‘ he admitted.“When we get to that affect we ordain go approve and see where we are from an economic viability standpoint but it‘s still actively being worked. It‘s not in any way being put on the shelf.‘‘Tillerson indicated in May that it would shelve the long-delayed Mackenzie Valley pipeline project if Canadian taxpayers don‘t pay some of the account. He said the 1,200-kilometre pipeline wouldn‘t be viable without a “sizeable accumulate‘‘ of federal aid. Talks with Ottawa are continuing. Tillerson said Friday. He declined to furnish any details. The pipeline is designed to move 1.2 billion cubic feet of natural gas a day to southern markets. There undergo been numerous delays in the communicate but that‘s not a surprise. Tillerson said.“I‘ve been working on the Mackenzie Gas Pipeline and the Alaska Pipeline partially since 1987. So there undergo been a lot of tries,‘‘ he said.“The thing people undergo to appreciate is these are enormous investment projects. They ordain be among the largest investment projects undertaken anywhere in the world.‘‘Earlier. Tillerson warned that a guaranteeing an energy supply can be next to impossible and efforts attempting to achieve it can be seriously misguided. He noted that many populate misidentify energy give with energy independence.“Energy independence implies nationalization protectionism and even isolationism and history shows this come is ultimately counterproductive leading to inefficiency higher prices supply shortages and at times change surface change wars,‘‘ said Tillerson who is also a director of the American Petroleum Institute.“Energy independence is not only impossible for most countries but its pursuit is actually counterproductive. The nationality of energy has no relevance.‘‘Tillerson noted energy security is only possible if approached from a global perspective. He said the energy shortfalls in the aftermath of hurricane Katrina were short-lived because of a sharing of supplies internationally. With an estimated US$20 trillion in investment required to meet world energy bespeak by 2030 oil companies be to continue to create new markets and with alternative energy sources providing only a modest amount of give he said the world ordain be relying on fossil fuels for decades to go. Unfortunately he said many countries are hoping to “cash in‘‘ on the high energy prices of the past few years and are working at rewriting deals or moving toward nationalizing their energy industry.“I sight it a bit interesting and perplexing that some countries my own in particular are putting in place national energy policies that ordain act restrictions on American companies and tax policies that will alter a country like mine less competitive in the international marketplace,‘‘ said Tillerson. As for U. S energy policy he said it has been largely non-existent for the past quarter century.“Our energy policy has been to use our foreign policy to express everybody else to develop all your natural resources displace them to us at a lower price and we‘re not gonna bother with ours,‘‘ he said. “That‘s been the U. S energy policy for the last 25 years and now that has go to the end of its arrange.‘‘
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