Contributed by Ken McCarty, State House Representative Candidate for District 24
For the past several months or year, I have been hearing that the Cook Inlet is out of gas and the Railbelt homes and businesses will be short of heating gas, resulting in “brown outs” and importing LNG. I have even heard some legislators making such statements. What is true? What is misinformation? Is there deceit to the people of Alaska? You decide.
The following is what I have uncovered when researching and talking to many entities in the oil and gas industry regarding Cook Inlet gas. First, all of the specialists regarding gas resource science inform that the Cook Inlet has 244 years of gas available for the customers on the Railbelt from Homer to Fairbanks (usgs.gov/programs/cmhrp/news/significant-natural-gas-resources-remain-be-discovered-cook-inlet-alaska).
Second, the producers of the Cook Inlet gas have been extracting gas from the ground and injecting the unconsumed gas into underground reserve storage facilities for use during periods of high gas demand. The producers have also been drilling more wells and finding more gas to fill those storage facilities. As of July 31, 2026, there was more than 4 Bcf more gas in storage than July 31, 2025: 45.2 Bcf vs. 41.1 Bcf last year in July (dog.dnr.alaska.gov/Information/CIGasDashboard).
Third, ENSTAR has existing gas contracts to purchase Cook Inlet gas from the producers to service the residents and businesses on the Railbelt. Fourth, electric companies that use gas to create electricity purchase such gas directly from the Cook Inlet gas producers and can store gas in the regulated storage facilities.
In July 2025, Cook Inlet gas sold to the Railbelt utilities for $8.683/mcf (tax.alaskagove/programs/oil/prevailing/cook.aspx). This is based on long-term contracts with price terms negotiated years ago. In August 2025, due to market conditions, the interruptible or spot price for gas increased to $13.50/mcf. ENSTAR purchased some interruptible gas at that price from August 2025 to January 2026.
In November, ENSTAR reported it had some 8 billion cubic feet (Bcf) of stored gas for customers. November, December 2025 and the first part of January 2026 were very cold months in which consumer demand was high. By mid-January 2026, ENSTAR had only 4.9 Bcf in storage.
By February 2026, ENSTAR elected to not buy any gas from a producer for some reason. On February 10, 2026, ENSTAR signed a short-term, less than one-year contract with Hilcorp at a $0.75 discount to the market price. The other producer reduced its gas production in the middle of winter, as ENSTAR claimed not to need the gas.
By the end of February 2026, ENSTAR was nearly out of storage gas, and on March 6, 2026, it signed a one-month contract with Hilcorp for gas at $16/mcf, which was a $2.50/mcf premium over the market price and a $3.25/mcf premium over the one-year deal signed three weeks earlier. About this time, a spin began that the Cook Inlet was out of gas, Alaska is desperate for gas and we may need to import gas from Canada or Mexico.
So, what is the truth? Do we have enough Cook Inlet gas in the ground below us to fill our needs? Are the Alaska Cook Inlet gas producers finding gas and securing drilling further wells to meet our needs? Is there an appearance of misinformation of a gas crisis? Are Alaskans more secure than what they are told and do not need to respond in fear? I believe the answer to all of those questions is yes.
In this exploration of the truth, I am not taking a position that Alaska does not need to explore more resource development of gas, options for energy, improved storage or lowering consumer expenses. Rather, like you, I wish for clarity of information so we can be most mindful how to prepare for another Alaskan winter. Is there a supply and demand problem? Do Alaskans need to store their own gas? Do Alaskans need to explore other heating sources, like coal? No one needs to be threatened or projected to live in fear of frozen homes and pipes, especially when we do have plenty of local gas that can be regulated by the Alaska Regulatory Commission.
I will continue to explore the truth of this issue as I keep my fingers on the pulse of our state for your benefit.
