Oil patch insider: Bill Armstrong on Alaska oil; 88's Leonis well; Beyer appointed

Kay Cashman

Petroleum News

In a Jan. 24 interview with FOX News reporter Dana Perino, successful Alaska explorer Bill Armstrong talked about how he thinks President Donald J. Trump's energy policies will unlock Alaska's oil and gas resources.

Perino on FOX's America's Newsroom asked Armstrong why this administration change is "possibly different for Alaska."

Armstrong who entered Alaska in 2001, said that before Biden took office "things were going fine. Almost everyone in Alaska wanted to drill. The Eskimos that live up there wanted to drill. It's great for our country and great for the state, for the people who live in Alaska," he said, adding "and we do it in the most environmentally sensitive way in the world. If I showed you the footprint of how we drill up there it's pretty darned tight."

Armstrong pointed out that there are really two major slices of federal land in northern Alaska: "There's a big chunk of federal land to the east which is called ANWR and that is the one that raises all sorts of controversy all of the time," he said noting that environmental groups such as Greenpeace "are always talking about ANWR."

And then, he said, "there is an area to the west of the North Slope called the NPR-A, which stands for the National Petroleum -- petroleum -- Reserve of Alaska."

When Joe Biden got in "he ostensibly put the NPR-A off limits, changing the rules and changing the regulations. It was an area even though it is very, very prospective was suddenly not available to be drilled," Armstrong said.

"And I'm the largest leaseholder in the NPR-A at slightly less than 1.1 million acres and what Biden did to me and my company was essentially nationalize my position."

At this point Perino broke in to show a chart of Alaska oil production, asking whether there is a "national security argument here" as well: "Increased oil production is not only good for Alaska but good for America?" she asked.

"You're absolutely right," Armstrong said. "What that top curve (in the chart) shows is bringing on the Prudhoe Bay oil field in 1978. It peaked at about 2 million barrels a day." And then it set about on a typical oil field decline curve ever since.

"And now the trans-Alaska pipeline, they call it TAPS, is three-quarters empty," Armstrong said.

"We have all this availability for crude oil to flow into it," he said, noting that a "huge field that me and my partners found about 10 years ago is soon going to start producing into TAPS," referring to Pikka.

"Then there was a big discovery made by ConocoPhillips that's going to start producing at about 200,000 barrels a day, so that curve is going to start going back up again, but what we could do is quite literally fill up TAPS again if we were allowed to drill," Armstrong said.

In updates to Alaska Legislature's House and Senate Finance committees Jan. 22 and Jan. 23, the Alaska Department of Natural Resources' Division of Oil and Gas highlighted recent production and the fiscal year 2025 forecast, as well as the 10-year outlook. Travis Peltier, petroleum reservoir engineer leads the forecast team. He said Santos, owner of Pikka operator Oil Search (Alaska), has said Pikka is expected to be online in the second quarter of 2026, although Peltier said that in investor presentations Santos has said it might be able to accelerate first production to December 2025. Peak rate in phase one is 80,000 barrels per day with an equal amount in phase two, on which a final investment decision is expected in 2027.

"So ... what Trump did by removing all the regulations and obstructionist moves by Biden in the NPR-A ... takes us one step back to what we do best -- produce oil cleanly and effectively for the world and it's also great for national security," Armstrong told Perino. "It's a game changer."

--KAY CASHMAN

88 Energy to drill Leonis

Drilling is contingent on the company finding a farm-out partner.

88 Energy has 100% working interest in Leonis, which is close to export pipelines and the Deadhorse services hub.

--KAY CASHMAN

Beyer to oversee Interior offices

"The Energy Workforce & Technology Council looks forward to continued collaboration with Assistant Secretary Beyer and the Department of the Interior to ensure a balanced approach to resource development that meets the nation's energy needs while maintaining responsible stewardship of public lands," EWTC said.

Beyer, who led EWTC from 2014 to 2023, played a pivotal role in advancing the interests of the energy services sector and advocating for oil and gas as a driver of economic growth and energy security. Her leadership, dedication, and deep industry knowledge have made a lasting impact on not only the Council and its member companies, but the energy industry at large, EWTC said in its statement.

Once confirmed by the Senate, Assistant Secretary Beyer will oversee four departmental agencies: the Bureau of Land Management, Bureau of Ocean Energy Management, the Bureau of Safety and Environmental Enforcement and the Office of Surface Mining, Reclamation and Enforcement. Serving under Secretary Doug Burgum, Beyer will also guide the use of about 245 million acres of federal surface lands, 700 million acres of federal mineral interests and the 1.7 billion acre Outer Continental Shelf.

"We could not be more excited and proud of Leslie's appointment as Assistant Secretary of Land and Minerals Management," said EWTC President Molly Determan. "Her unwavering commitment to the energy sector and her innate ability to bring stakeholders together will serve the Department of the Interior well as it navigates challenges related to land and resource management. Leslie has always been a strong advocate for the energy industry, and we have no doubt that she will continue to champion policies that unleash American energy."

EWTC President Tim Tarpley echoed the sentiment, adding, "Leslie's experience and deep understanding of the energy services sector make her an excellent choice for this role. Her leadership at EWTC helped shape meaningful policy discussions, and we are confident that she will bring the same level of dedication and expertise to the Department of the Interior. We look forward to working with her in this new capacity."

Under Beyer's leadership, the council achieved numerous milestones, including strengthening partnerships with policymakers, expanding industry workforce initiatives and advocating for policies that support domestic energy production and innovation, EWTC said.