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Slope needs billions until gas line start
Anchorage Daily News ^ | December 8, 2004 | KAY CASHMAN

Posted on 12/08/2004 5:57:38 PM PST by thackney

The president of the Alaska Oil and Gas Association says Alaska needs $30 billion in new investment in the next 10 years to keep North Slope oil production flat until a natural gas pipeline starts up. This is in addition to the $20 billion to $30 billion North Slope producers will have to spend from 2005 through 2015 to run the existing fields and the 800-mile trans-Alaska oil pipeline.

Without the $30 billion in new investment, state Department of Revenue projections show, North Slope production could drop from its current level of about 1 million barrels of oil per day to less than 200 million barrels by 2015, Chuck Pierce said at a recent Resource Development Council for Alaska meeting.

"DOR estimated industry would have to double their investments each year to 2008 and have geologic and permitting and project execution success" to keep oil production between about 825,000 to 1 million barrels per day, Pierce said.

"If we can make this happen, it would be the least amount of production loss on the North Slope in any time period since the decline started in 1989 (when the Slope produced about 2 million barrels a day). By any standards this is very progressive, some may say optimistic. But it's very aggressive. We have to be very aggressive just to stay level. ... We're not going to cost-cut our way to the goal line here. The fixed costs are too high. ... So we need more new discoveries ... three or four more Alpines to keep us in the game. ... That's why it's so important we focus on new investment now. Get that ball rolling and keep it rolling."

(Excerpt) Read more at adn.com ...


TOPICS: Business/Economy; Extended News; News/Current Events; US: Alaska
KEYWORDS: alaska; crudeoil; energy; oil; pipeline
This is a very expensive place to produce oil. But it is also one has some of the most restrictive enviromental constraints found in the world.
1 posted on 12/08/2004 5:57:38 PM PST by thackney
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To: thackney
I saw the title and clicked over to ping you.
2 posted on 12/08/2004 6:00:20 PM PST by Flyer (Prosecute Vote Fraud!)
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To: thackney

And in related news:

http://www.adn.com/business/v-printer/story/5886911p-5799070c.html

North Slope oil production averaged 980,690 barrels per day in November, up 2 percent from October.

Production from Prudhoe Bay, the largest field, was up 5 percent, the largest increase, averaging 470,872 barrels a day for the month. Prudhoe, run by BP Exploration (Alaska) Inc., includes the field's satellite oil fields Midnight Sun, Aurora, Polaris, Borealis and Orion.

The Slope's No. 2 field is the Kuparuk River field, run by Conoco Phillips Alaska Inc. Kuparuk had the largest drop in production, down 3 percent to average 197,767 barrels a day in November.

At Alpine, the No. 3 field, production averaged 116,197 barrels a day, up 2.5 percent.

excerpted


3 posted on 12/08/2004 6:00:28 PM PST by thackney (life is fragile, handle with prayer)
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To: Flyer

Well, go ahead and ping me. My threads usually need all the traffic they can get.


4 posted on 12/08/2004 6:02:25 PM PST by thackney (life is fragile, handle with prayer)
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To: thackney; TexasCowboy; HoustonCurmudgeon; Dog Gone
Well, go ahead and ping me. My threads usually need all the traffic they can get.

Oil bidness ping. . .

5 posted on 12/08/2004 6:11:45 PM PST by Flyer (Prosecute Vote Fraud!)
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To: Flyer
Without the $30 billion in new investment, state Department of Revenue projections show, North Slope production could drop from its current level of about 1 million barrels of oil per day to less than 200 million barrels by 2015, Chuck Pierce said at a recent Resource Development Council for Alaska meeting.

Somebody is in big need of a new editor.

6 posted on 12/08/2004 6:15:00 PM PST by Dog Gone
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To: thackney

Lets spend the money.
Hell of a lot better than kissing Islamic a$$es.

While I was typing this the gas heater just kicked on.......


7 posted on 12/08/2004 6:17:46 PM PST by 76834
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To: 76834
While I was typing this the gas heater just kicked on.......

Lets not forget the Natural Gas Pipeline too....

8 posted on 12/08/2004 6:19:51 PM PST by thackney (life is fragile, handle with prayer)
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To: Dog Gone
There is probably some agreement that when the temperature goes below 10° they go with the first draft.

It's hard to type with gloves on.

9 posted on 12/08/2004 6:28:29 PM PST by Flyer (Prosecute Vote Fraud!)
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To: thackney

Not forgetting for a single moment.


10 posted on 12/08/2004 6:29:43 PM PST by 76834
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To: Dog Gone

you forgot to factor in inflation


11 posted on 12/08/2004 6:30:05 PM PST by beebuster2000 (waiting waiting waiting)
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To: Flyer

I know, but it's pretty hard to decline from 1 million to a level of 200 million even with gloves on. That gives fumble fingers a whole new definition.


12 posted on 12/08/2004 6:31:52 PM PST by Dog Gone
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To: beebuster2000

ROFL, you're right.


13 posted on 12/08/2004 6:32:25 PM PST by Dog Gone
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