Oil scrutiny in a U.S. Arctic continues notwithstanding stream cost environment

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Alaska’s wanton oil prolongation has declined from 1.8 million barrels per day (MMb/d) in 1991 to 0.5 MMb/d in 2014, and it is approaching to continue disappearing by 2040. Almost 75% of Alaska’s wanton oil prolongation from 1990 to 2012 was from a Prudhoe Bay and Kuparuk River fields in a executive North Slope, that respectively constructed 4.9 billion and 1.7 billion barrels of wanton oil over this period.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Crude oil prolongation in Alaska is supportive to a severe environment—including non-static ice conditions and singular time though ice coverage—as good as tube economics. However, new redeeming capitulation postulated to Royal Dutch Shell to start exploratory drilling in a Burger Prospect in a Chukchi Sea might assistance to equivalent destiny declines in wanton oil prolongation from other state and federally managed resources in a region.

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Current Alaska oil and healthy gas activity is strong in 3 categorical regions: North Slope Offshore, Central North Slope, and South Alaska.

  • The North Slope Offshore encompasses a Chukchi and Beaufort Seas. Except for a Northstar field, that spans both sovereign and state waters in a Beaufort Sea, many of a production, including a Nikaitchuq margin and other smaller producing fields, is located in state waters in a Beaufort Sea.
  • The Central North Slope includes a Alpine, Kuparuk River, Milne Point, Prudhoe Bay, and West Sak fields, as good as a National Petroleum Reserve-Alaska (NPR-A) and a Arctic National Wildlife Refuge (ANWR). According to a Bureau of Land Management (BLM), there are 212 oil and healthy gas leases in a NPR-A though no producing units. Oil and healthy gas scrutiny and prolongation are not authorised in a ANWR.
  • In South Alaska, ongoing oil and healthy gas activity is located in a Cook Inlet area.

The Bureau of Ocean Energy Management estimates that a Chukchi Sea, off a northwest seashore of Alaska, contains 2 to 40 billion barrels of unproved technically recoverable wanton oil resources and 10 to 210 trillion cubic feet of unproved technically recoverable healthy gas resources. Technically recoverable resources embody oil and healthy gas that can be constructed formed on stream technology, attention practice, and geologic knowledge. More than half of Alaska’s unproved technically recoverable wanton oil resources are in a North Slope Offshore.

The unproved technically recoverable wanton oil resources in a North Slope Offshore (23.8 billion barrels) are allied to a unproved technically recoverable wanton oil resources in a Bakken arrangement (22.8 billion barrels) and some-more than twice a unproved technically recoverable wanton oil resources in a Eagle Ford arrangement (10.3 billion barrels).

Image credit: U.S. Energy Information Administration

Image credit: U.S. Energy Information Administration

Source: EIA