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Providing coverage of Alaska and northern Canada's oil and gas industry
September 2023

Vol. 28, No.36 Week of September 03, 2023

At 431,758 bpd ANS down 6.9% for July

Average down 8.6% from July 2022; Prudhoe down 17,774 bpd, 7.9%; Colville River down 8,260 bpd, 23%; Point Thomson down 14.6%

Kristen Nelson

Petroleum News

Alaska North Slope production averaged 431,768 barrels per day in July, down 32,020 bpd, 6.9%, from a June average of 463,788 bpd and down 8.6% from a July 2022 average of 472,481 bpd. Crude oil accounted for 90.1% of the total, 388,840 bpd in July, down 26,092 bpd, 6.3%, from a June average of 414,932 bpd and down 7.8% from a July 2022 average of 421,772 bpd. Natural gas liquids were 9.9% of the total, averaging 42,928 bpd in July, down 5,928 bpd, 12.1%, from a June average of 48,856 bpd and down 15.3% from a July 2022 average of 50,709 bpd.

The year-over-year percentage drop of 8.6% is the largest since July 2021, during the COVID-19 pandemic, when production was down 15% from July 2020.

Warmer temperatures in the summer negatively impact compression, resulting in lower production. The average temperature on the North Slope this July was 56.4 degrees, compared to an average of 48.8 degrees in July 2022, according to data from the National Centers for Environmental Information.

Summer weather also permits major facilities projects which can require shutdowns. There was a planned annual maintenance shutdown at Alpine July 28-30, ConocoPhillips Alaska spokeswoman Rebecca Boys told Petroleum News.

Prorations -- required reduction in volumes through the trans-Alaska Oil Pipeline by Alyeska Pipeline Service Co. for summer work -- have resulted in reduced production in some summers, but that wasn't the case this summer.

Michelle Egan, Alyeska's chief communications officer, told Petroleum News in an Aug. 24 email:

"Where possible, we are taking short-duration shutdowns to do work. We have already had several and the final one is this weekend. Due to the way we do the work in a short duration, no proration is needed."

Production data come from the Alaska Oil and Gas Conservation Commission which reports production by field and well on a month delay basis.

Prudhoe, Colville, Kuparuk River

The largest per-barrel month-over-month decline was at the Hilcorp North Slope-operated Prudhoe Bay field, which averaged 230,816 bpd in July, down 19,774 bpd, 7.9%, from a June average of 250,590 bpd and down 10% from a July 2022 average of 256,543 bpd. Crude oil made up 82.6% of Prudhoe volume, averaging 190,638 bpd in July, down by 14,445 bpd, 7%, from a June average of 205,083 bpd and down 9% from a July 2022 average of 209,403 bpd. NGLs were 17.4% of the Prudhoe volume, averaging 40,178 bpd in July, down by 5,329 bpd, 11.7%, from a June average of 45,507 bpd and down 14.8% from a July 2022 average of 47,140 bpd.

In addition to the primary reservoir, production volumes from Prudhoe include Aurora, Borealis, Lisburne, Midnight Sun, Niakuk, Polaris, Point McIntyre, Put River, Raven and Schrader Bluff.

ConocoPhillips Alaska's Colville River averaged 27,690 bpd in July, down 8,260 bpd, 23%, from a June average of 35,950 bpd and down 19.5% from a July 2022 average of 34,374 bpd.

In addition to oil from the main Alpine pool, Colville includes production from the Nanuq and Qannik oil pools.

ConocoPhillips-operated Kuparuk River averaged 78,844 bpd in July, down 2,359 bpd, 2.9%, from a June average of 81,203 bpd and down 3.3% from a July 2022 average of 81,489 bpd.

In addition to the main Kuparuk pool, Kuparuk produces from satellites at Tabasco and Tarn, and from West Sak.

Smaller month-over-month declines

ConocoPhillips' Greater Mooses Tooth in the National Petroleum Reserve-Alaska averaged 15,772 bpd in July, down 1,131 bpd, 6.7%, from a June average of 16,902 bpd and down 7% from a July 2022 average of 16,952 bpd. The field produces from two pools, Lookout and Rendezvous. Rendezvous is the more productive pool, accounting for 95.3% of July production, and up in bpd from June. Lookout, which produced from two wells in June, was producing from only one in July, resulting in the month-over-month drop in production at the field.

Hilcorp Alaska's Milne Point averaged 39,747 bpd in July, down 548 bpd, 1.4%, from a June average of 40,295 bpd, but up 3.7% from a July 2022 average of 38,321 bpd.

Hilcorp Alaska's Northstar averaged 5,364 bpd in July, down 495 bpd, 8.4%, from a June average of 5,859 bpd and down 22.3% from a July 2022 average of 6,903 bpd. Crude oil accounted for 59.9% of the July total, 3,212 bpd, down 28 bpd, 0.9%, from a June average of 3,240 bpd and down 15.8% from a July 2022 average of 3,816 bpd. NGLs were 40.1% of the total, averaging 2,152 bpd in July, down 466 bpd, 17.8%, from a June average of 2,618 bpd and down 30.3% from a July 2022 average of 3,088 bpd.

Hilcorp Alaska-operated Point Thomson averaged 2,659 bpd in July, down 455 bpd, 14.6%, from a June average of 3,114 bpd and down 70.9% from a July 2022 average of 9,143 bpd.

Savant Alaska's Badami averaged 983 bpd in June, down 57 bpd, 5.5%, from a June average of 1,041 bpd but up 55.5% from a July 2022 average of 632 bpd. Savant is a Glacier Oil and Gas company.

Month-over-month increases

Eni's Nikaitchuq averaged 16,472 bpd in July, up 510 bpd, 3.2%, from a June average of 15,962 bpd but down 6.8% from a July 2022 average of 17,675 bpd.

Hilcorp Alaska's Endicott averaged 6,502 bpd in July, up 423 bpd, 7%, from a June average of 6,080 bpd and up 46.6% from a July 2022 average of 4,435 bpd. Crude oil was 90.8% of Endicott volume in July, averaging 5,904 bpd, up 556 bpd, 10.4%, from a June average of 5,348 bpd and up 49.3% from a July 2022 average of 3,954 bpd. NGLs were 9.2% of the field's volume, averaging 599 bpd in July, down 133 bpd, 18.2%, from a June average of 732 bpd but up 24.4% from a July 2022 average of 481 bpd.

Eni's Oooguruk averaged 6,919 bpd in July, up 126 bpd, 1.9%, from a June average of 6,793 bpd and up 15.1% from a July 2022 average of 6,013 bpd.

SUBHED:

Cook Inlet

Cook Inlet crude oil production averaged 8,191 bpd in July, down 145 bpd, 1.7%, from a June average of 8,336 bpd and down 17.4% from a July 2022 average of 9,910 bpd.

Hilcorp Alaska's Beaver Creek averaged 346 bpd in July, up 11 bpd, 3.4%, from a June average of 335 bpd but down 56.3% from a July 2022 average of 792 bpd.

Hilcorp's Granite Point averaged 2,223 bpd in July, down 32 bpd, 1.4%, from a June average of 2,254 bpd and down 7.4% from a July 2022 average of 2,400 bpd.

BlueCrest's Hansen averaged 703 bpd in July, down 5 bpd, 0.7%, from a June average of 708 bpd and down 7.9% from a July 2022 average of 763 bpd.

Hilcorp's McArthur River averaged 2,493 bpd in July, down 252 bpd, 9.2%, from a June average of 2,746 bpd and down 12.5% from a July 2022 average of 2,850 bpd.

Cook Inlet Energy's Redoubt Shoal averaged 169 bpd in July, up 40 bpd, 31.1%, from a June average of 129 but down 82.2% from a July 2022 average of 951 bpd. CIE is a Glacier Oil and Gas company.

Hilcorp's Swanson River averaged 742 bpd in July, up 49 bpd, 7%, from a June average of 693 bpd and up 8.7% from a July 2022 average of 683 bpd.

Hilcorp's Trading Bay averaged 965 bpd in July, down 8 bpd, 0.8%, from a June average of 973 bpd and down 1.8% from a July 2022 average of 983 bpd.

CIE's West McArthur River averaged 549 bpd in July, up 129 bpd, 30.8%, from a June average of 420 bpd and up 48.1% from a July 2022 average of 371 bpd. CIE is a Glacier Oil and Gas company.

ANS crude oil production peaked in 1988 at 2.1 million bpd; Cook Inlet crude oil production peaked in 1970 at more than 227,000 bpd.





Inlet natural gas down 1.2% Natural

gas production in Cook Inlet averaged 198,586 thousand cubic feet per day in July, down 2,319 mcf per day, 1.2%, from a June average of 200,905 mcf per day and down 2.5% from a July 2022 average of 203,606 mcf per day.

This data is from the Alaska Oil and Gas Conservation Commission, which reports production on a month-delay basis. For natural gas AOGCC reports measurements in thousands of cubic feet, mcf.

The six largest fields, each accounting for at least 5% of inlet production, accounted for 79.7% of production, 158,342 mcf per day, in July.

Hilcorp Alaska's Ninilchik averaged 45,027 mcf per day in July, 22.7% of inlet production, down 346 mcf per day, 0.8%, from a June average of 45,373 mcf per day but up 41.1% from a July 2022 average of 31,903 mcf per day.

Hilcorp's North Cook Inlet averaged 36,240 mcf per day, 18.3% of inlet production, down 795 mcf per day, 2.2%, from a June average of 37,035 mcf per day but up 61% from a July 2022 average of 22,510 mcf per day.

The Hilcorp-operated Beluga River field averaged 33,174 mcf per day in July, 16.7% of inlet production up 2,287 mcf per day, 7.4%, from a June average of 30,887 mcf per day, but down 1.3% from a July 2022 average of 33,612 mcf per day.

Hilcorp's Kenai gas field averaged 19,598 mcf per day in July, 9.9% of inlet production, down 267 mcf per day, 1.4%, from a June average of 19,866 mcf per day and down 26.3% from a July 2022 average of 26,593 mcf per day.

Hilcorp's McArthur River averaged 13,928 mcf per day in July, 7% of inlet production, down 812 mcf per day, 5.5%, from a June average of 14,740 mcf per day and down 22.7% from a July 2022 average of 18,006 mcf per day.

Furie's Kitchen Lights averaged 10,376 mcf per day in July, 5.2% of inlet production, up 274 mcf per day, 2.7%, from a June average of 10,102 mcf per day but down 25.6% from a July 2022 average of 13,946 mcf per day.

Combined production from fifteen fields accounted for 20.3% of inlet production in July.

Hilcorp's Swanson River averaged 9,196 mcf per day in July, down 175 mcf per day, 1.9%, from a June average of 9,371 mcf per day but up 14.5% from a July 2022 average of 8,032 mcf per day.

Hilcorp's Beaver Creek averaged 5,508 mcf per day in July, down 381 mcf per day, 6.5%, from a June average of 5,889 mcf per day and down 57.1% from a July 2022 average of 12,847 mcf per day.

Hilcorp's Ivan River averaged 5,419 mcf per day in July, down 1,565 mcf per day 22.4%, from a June average of 6,984 mcf pr day and down 55.4% from a July 2022 average of 12,153 mcf per day.

Hilcorp's Cannery Loop averaged 5,213 mcf per day, down 218 mcf per day 4%, from a June average of 5,432 mcf per day and down 20.1% from a July 2022 average of 6,521 mcf per day.

Hilcorp's Deep Creek averaged 3,784 mcf per day in July down 24 mcf per day, 0.6%, from a June average of 3,808 mcf per day, but up 17.1% from a July 2022 average of 3,233 mcf per day.

Hilcorp's Granite Point averaged 3,247 mcf per day in July, down 28 mcf per day, 0.9%, from a June average of 3,275 mcf per day and down 7.4% from a July 2022 average of 3,507 mcf per day.

Vision Operating's North Fork averaged 2,259 mcf per day in July, down 52 mcf per day, 2.3%, from a June average of 2,311 mcf per day, and down 24.5% from a July 2022 average of 2,989 mcf per day.

AIX's Kenai Loop averaged 2,110 mcf per day in July, down 12 mcf per day, 0.6%, from a June average of 2,122 mcf per day and down 34% from a July 2022 average of 3,196 mcf per day.

Hilcorp's Trading Bay averaged 1,243 mcf per day in July, up 195 mcf per day, 18.6%, from a June average of 1,049 mcf per day and up 0.1% from a July 2022 average of 1,242 mcf per day.

BlueCrest's Hansen averaged 1,105 mcf per day in July, down 476 mcf per day, 30.1%, from a June average of 1,580 mcf per day and down 22.1% from a July 2022 average of 1,418 mcf per day.

Hilcorp's Lewis River averaged 406 mcf per day in July, up 49 mcf per day, 13.6%, from a June average of 357 mcf per day but down 40.6% from a July 2022 average of 683 mcf per day.

Amaroq's Nicolai Creek averaged 345 mcf per day in July, up 15 mcf per day, 4.4%, from a June average of 331 mcf per day but down 10.3% from a July 2022 average of 385 mcf per day.

Hilcorp's Nikolaevsk averaged 235 mcf per day in July, down 28 mcf per day, 10.5%, from a June average of 263 mcf per day and down 13% from a July 2022 average of 271 mcf per day.

Cook Inlet Energy's West McArthur River averaged 135 mcf per day in July, up 36 mcf per day, 35.8%, from a June average of 100 mcf per day and up 61.4% from a July 2022 average of 84 mcf per day. CIE is a Glacier Oil and Gas company.

CIE's Redoubt Shoal averaged 39 mcf per day in July, up 7 mcf per day, 22.7%, from a June average of 32 mcf per day but down 83.6% from a July 2022 average of 240 mcf per day.

Cook Inlet natural gas production peaked in the mid-1990s at more than 850,000 mcf per day.

--KRISTEN NELSON

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