Producers 2024: Production surge coming
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Alaska holds gold standard in environmental stewardship
Kay Cashman Petroleum News
An oil production surge is around the corner for the North Slope of Alaska.
The first surge will come from Santos' Pikka Phase 1 project, scheduled to begin producing oil in the first half of 2026 with 80,000 barrels per day, followed by Pikka Phase 2. Its pads and roads may be built as early as 2025-26 winter season, followed by other nearby discoveries, such as Quokka. Pikka Phase 2, Quokka and others are expected to be in the 80,000 bpd range.
And then in 2029, ConocoPhillips Alaska will bring on its giant Willow project in the National Petroleum Reserve-Alaska with some 180,000 bpd from three drill sites. And if the incoming Trump administration is able to open more of the petroleum reserve, Willow might get the original five drill sites it had requested for the project.
There are also smaller projects underway on the North Slope, such as ConocoPhillips' Nuna, which will bring Kuparuk's 49th drill site online in 2025. It will tie back to existing processing facilities at Kuparuk's Central Processing Facility 3, boosting Kuparuk's production some 20,000 net barrels of oil equivalent per day.
Prime area Alaska is a prime place to develop oil because it is a longtime leader in environmental stewardship, ranking lowest in ESG metrics among all energy producing states. ESG, which stands for environmental, social and governance, affects the capital allocation decisions of many oil and gas companies.
After all, companies have been investing in northern Alaska and producing oil safely and responsibly for more than 40 years.
The northern part of the state offers world class basins with large land positions ready to explore and there are major exploration projects already underway that may result in new production in 7 to 8 years, such as a Bill Armstrong venture on the eastern North Slope, whose targets include Nanushuk look-alikes.
Another advantage for companies looking to produce in Alaska is the fact that it has an experienced industry service sector; firms that have technological expertise to offer.
The North Slope's 40-plus years of production touts technological advancement and the reduction of the environmental footprint in oil and gas projects.
Factoid: Alaska's wildlife stocks remain strong in number; higher than at start-up of the trans-Alaska pipeline system in 1977.
Finally, and notably, Alaska is the LOWEST in carbon emissions from fossil fuels of all the states.
Cook Inlet basin This issue of the annual Producers magazine also covers oil and gas companies doing business in Southcentral Alaska's Cook Inlet basin, which currently supplies natural gas for heating homes and commercial buildings all over the state.
Today the focus in the Cook Inlet basin is natural gas, although the basin still produces a small amount of crude: 8,183 bpd.
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