Posted on 10/30/2014 4:52:12 AM PDT by thackney
ConocoPhillips’ plans for the first oil production facilities from federal lands in Alaska moved one step closer to reality Wednesday, as the Interior Department released a key environmental study on the project.
Although it is not a final verdict, the assessment by Interior’s Bureau of Land Management sets the stage for approval later this year by outlining steps ConocoPhillips would have to take to mitigate environmental effects while boring up to 33 wells at its Greater Mooses Tooth site.
“Reaching this stage of permitting is a major milestone for the project and for the future of balanced, responsible federal oil production in the National Petroleum Reserve-Alaska,” said Bureau director Neil Kornze.
If ConocoPhillips wins final approval, the resulting wells would send new supplies to the Trans-Alaska Pipeline System, which needs steady deliveries of crude to keep flowing.
The company is asking permission to build an 11.8-acre drilling pad inside the National Petroleum Reserve-Alaska, a 23-million-acre region in northwest Alaska that was set aside because of its oil and gas potential 91 years ago. Any oil pulled from wells at the Greater Mooses Tooth site would be processed 17 miles away, at the existing Alpine production facility on state lands. Anadarko Petroleum Corp. has a 22 percent working interest in both the Greater Mooses Tooth wells and the Alpine facility.
In the environmental impact statement released Wednesday, the Bureau of Land Management recommended the company be allowed to build an 8.5-mile gravel road that would provide access to the site in case of oil spills and other emergencies.
ConocoPhillips’ request was for a shorter 7.7-mile access road, which would have involved two bridges at creek and river crossings. BLM’s alternative approach avoids one of the bridges but may hike costs because of the extra distance.
The bureau said both its recommended plan and ConocoPhillip’s proposal substantially pare the need for aircraft overflights over other alternatives, limiting disturbances to caribou and other local wildlife as well as the communities that live on Alaska’s North Slope. Additional aircraft and traffic requirements could be imposed as part of any final approval, BLM said.
The BLM said it could impose other requirements when it formally decides on the project, including possibly creating a compensatory mitigation fund with money used to promote conservation and restoration inside the reserve. ConocoPhillips also could be forced to develop a long-term regional mitigation and monitoring strategy, the agency said.
Sen. Lisa Murkowski, R-Alaska, said she welcomes the progress but worries about those additional requirements that could appear in the bureau’s formal decision on the project.
“Federal leaseholders need to have a permitting process that is timely and predictable in order to invest the billions of dollars it takes to develop America’s energy resources,” she said in a statement.
ConocoPhillips said long lead times for lining up supplies and equipment mean that permitting delays could put off the start of construction. “We need to purchase long-lead materials early in 2015 for winter construction in 2016,” the company said in an e-mailed statement.
the company has not yet made a final investment decision in the project, while permitting is under way. A ConocoPhillips spokeswoman said a final investment decision is now planned for the first quarter of 2015.
Environmentalists were disappointed with the Interior Department’s approach. They said the proposed access road would permanently damage the region’s wetlands and tundra, with long-lasting impacts on the region’s wild animals and the native Alaskans that depend on them for food and clothing.
“Development must be done right, and that means using good scientific data and doing a thorough analysis of all available options,” said Nicole Whittington-Evans, Alaska regional director for The Wilderness Society. “The standards for Greater Mooses Tooth 1 should set a high bar for safety, environmental protection and industry accountability.”
The Greater Mooses Tooth project would complement ConocoPhillips’ nearby CD5 development, now under construction. The company hopes to start drill site facilities in winter 2015, with a plan for at least 15 wells and production of as much as 16,000 barrels of oil per day.
Greater Mooses Tooth is projected to add up to 30,000 barrels of oil per day to the Trans-Alaska Pipeline System that carries crude 800 miles, from Prudhoe Bay to Valdez.
It won’t get final approval under this regime.
Dear Fed:
“Lead, follow or get the h^%* out of the way!”
I was working on this project in Alaska a decade ago. It isn’t just this administration that gets in the way of making progress.
“....would like to start drilling in 2015....”
Don’t hold your breath, Conoco-Phillips. This outfit will string you along like a gang of shyster lawyers. Come to think of it; the administration IS a gang of shyster lawyers.
The Greater Mooses Tooth project would complement ConocoPhillips’ nearby CD5 development, now under construction.
The CD5 location:
https://www.google.com/maps/@70.2169179,-151.0103316,2612m/data=!3m1!1e3
Whoops, close but wrong. That was the Native Nuiqsut village.
ConocoPhillips Alaska Announces New Projects
http://alaska.conocophillips.com/who-we-are/Documents/COPA%20New%20Projects%20Fact%20Sheet%20CURRENT%20FINAL.pdf
July 2014
Corrected location for CD5:
https://maps.google.com/maps?ll=70.30736,-151.24112&spn=0.053276,0.184364&t=h&z=13
Reference Planning map:
https://www.conocophillipsalaska.com/permits/CD5%20Permit%20apps%202008/CD_5%20Access%20Road%20set%2012-2-08.pdf
Energy crises ? What energy crises ...... Peak oil ? What peak oil .....
Actually , and correct me if I am wrong, but it’s the easy to get to cheap oil is what we are “ perhaps “ we are runnning low on.
Thackney you know more that I do but I would dare to say that tight oil will come down in price to explore, drill, and produce to compete with conventional oil in the next 5 to 10 years.
This downturn in the oil boom will force this oil companies and those support companies to adapt, innovate to become better at what they do and do it cheaper or go out of bussiness.
In the long run it’s better for the industry and for America.
The bears love it, the warm pipeline, it keeps their feet nice and warm.
Caribou by pipeline. where they go, predators follow.
http://tinyurl.com/onl7n8g
Correct. The accessible cheap oil is mostly gone worldwide.
I would dare to say that tight oil will come down in price to explore, drill, and produce to compete with conventional oil in the next 5 to 10 years.
You mean to compete with oil sources that are no longer found? I don't understand you message.
If you mean to say tight formations like Bakken and the Eagle Ford are going to be drilling at today's rate down at $20 a barrel, I would say you are insane; although I hate to make predictions. We have already had significant lowering of the cost and gains in inefficiencies. That is why our US production has climbed so fast.
This downturn in the oil boom will force this oil companies and those support companies to adapt, innovate to become better at what they do and do it cheaper or go out of bussiness.
I say it is a mistake to assume that doesn't happen at $100 a barrel. Actually at the higher prices, there is more dollars available to justify research and development, less when the price falls.
I meant conventional oil when it was the main stay years long past vs tight oil.
Yes I should have clarified what I meant.
Here is a good question ? Before all the conventional oil was tapped vs tight oil, which one was, or is the larger supply under ground world wide ? Which one was in larger formations ?
Yes, no one knows the future except God him self and it’s foolishly rash to dare to predict the future, it’s my hopes of a brighter ecomonic future for America that gets the best of me, however ? I rather be called insane and be corrected for that and perhaps that future hopes turn out to be true ? Then us being in a constant state of malaise with no hope at all.
I still believe with God’s blessings and with American innovation, ingenuity, and perhaps miracles of what I said
Will happen in the next 5 to 10 years with America”s oil boom revolution self substaining. One can only hope so.
I think we are still learning the amount of recoverable oil found in tight formation. Remember that currently the recoverable rate of oil found in a formation like the Bakken is only ~5%. 95% of the hydrocarbons will remain in the ground when we finish using today's technology.
Most traditional fields get 30~60% of the total oil removed, depending on how much enhanced oil recovery methods are used. For this I mean items like water flood or CO2 injection, more than just pumping.
There is no way we could spend 20 times the money and do 10 times the amount of physical work required for these tight formation and think we would match the cost of wells without that requirement.
The more I communicate with you the more I learn about the energy industry, that is ? At least in the oil sector part of it.
Thank you so much Thackney.
I’m glad you consider that learning since I know I am not actually answering the question you asked.
Cheers!
As we get older we tend to figure things out in the long run and as my old boss once told me, “ don’t sweat the little things” ......
I learn from you anyway even if I didn’t even notice nor concerned if you exactly answer my question, reason being ? I love and is fascinated by any news about the energy industry and whatever can help America in the long run and short term and love hearing from someone who’s or rather who is in the industry giving us updates and the true coop of what is going on.
My old past interest and love was old cars, but got out of that.
I tedon’t know if you believe in the God of Israel, forJews and Christians alike, to resolve the answer you proposed to me in that it’s insane to think that the fracking oil revolution can over come the great obsticals that tight oil can and compete with conventional oil in the cost of getting it out of the ground in perhaps 5 to 10 years.
It’s our manifest destiny.
Look back in our nations history and God’s providential hand guide our way.
No doubt it was God’s hand that helped us win the war of Independence with England.
Our rich natural energy resources ?
It’s our manifest destiny to use them.
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