Alaska’s Oil Revival Gains Momentum
Europe’s Arctic Oil Dilemma Deepens as Supply Fears Grow Malaysia’s Maharani Freeport could emerge… Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
Oil majors are rediscovering Alaska amid the unprecedented oil and gas crunch caused by the war in the Middle East.
Previously considered a sort of toxic drilling destination, the northernmost state is now returning to the spotlight as a source of secure supply.
In early May, the Bureau of Land Management launched a lease sale for 625 tracts across about 5.5 million acres in the National Petroleum Reserve.
The sale attracted record bids totaling $163 million, from companies including Exxon, Repsol, ConocoPhillips, Santos, and Shell.
“It feels like a bit of the Alaska renaissance,” ConocoPhillips chief executive Ryan Lance said recently, asquotedby Bloomberg.
“When you think about the strategic importance of where we are going to find the conventional oil to satisfy the growing demand around the world, people are coming back to places like Alaska.
So it does very much feel like back to the future.”Related: Trump’s Iran Signals Send Oil Markets Into Chaos Conoco, and fellow bidder in the recent lease sale Santos, are the companies engaged in the only two recent oil and gas projects to start in Alaska.
Conoco runs the Willow project, which was greenlit by President Biden in what enraged his environmentalist voters at the time, and Santos recently launched commercial production at the Pikka project.
The Bureau of Land Management approved Conoco’s 160,000-bpd Willow project in the National Petroleum Reserve of Alaska in late 2020.
Government officials hailed the project as a job creator and a guarantee that oil will continue to flow along the Trans Alaska Pipeline.
The Pikka project, for its part, is seen adding some 80,000 barrels daily to Alaska’s total output by the third quarter of this year.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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