5-14-14

North Slope Project Update

Posted: 13 May 2014 10:01 AM PDT

There have been numerous announcements from the oil and gas industry regarding new projects since the passage of SB21, the More Alaska Production Act (Note in our report last week the support for this oil and gas reform act from the mining industry  -dh). Announcements have come from the major producers, as well as smaller, independent companies. Information compiled by the Bradner Alaska Economic Report shows that $8.6 billion in new projects have been announced since the passage of SB21. This is on top of the $4 billion that was in the works at Point Thomson and $1 billion for  ConocoPhillip’s CD-5 near Alpine field.

Oil industry leaders have been quick to point out that SB21 helped spur the increase in projects and new production and these projects could change depending on the outcome of the August 19 primary election. The announced projects and their expected production include :

BP

• West end of Prudhoe Bay- $3 billion project; 40,000 barrels per day (b/d) beginning in 2018
• Prudhoe Bay Drilling- $1 billion; 2 rigs added in 2015 and 2016

Brooks Range Petroleum

• Mustang Field- $600 million; 15,000 b/d by 2017

Cealus Energy

• Nuna Project- $2 billion; 15,000-20,000 b/d

ConocoPhillips

• GMT-1, Kuparuk drill site, and Kuparuk River site- $2 billion; 49,900 b/d
• CD-5- $1 billion; 16,000 b/d to begin production in late 2015

Pt. Thomson Project

• Field east of Prudhoe Bay- $4 billion; 10,000 b/d of liquid condensates in 2016

$13.6 billion and an increase of 145,900 to 150,900 b/d by 2018

These projects not only represent increased investment in Alaska and increased oil production, but they also represent more jobs for Alaskans. Oil industry leaders are optimistic that new development can continue with the help of SB21 and that the new tax reform is encouraging new projects throughout the State of Alaska.