Here's an example of what I consider to be a "new drilling project"...
Texas company begins North Slope oil production
adn.com
By WESLEY LOY / wloy@adn.com
Published: June 12th, 2008 05:44 PM
Last Modified: June 12th, 2008 05:45 PM
JUNEAU - BP and Conoco Phillips are no longer the only companies running oil fields on the North Slope.
Pioneer Natural Resources Co. of Irving, Texas, has started production from its small Oooguruk field in the shallow waters of the Beaufort Sea.
Pioneer becomes the first so-called independent oil and gas company to run a field on the Slope. An independent makes its money exploring for and producing crude oil, and doesn't have refineries or retail gas stations as BP and Conoco do.
Pioneer said this week production from Oooguruk - an Inupiaq word for "bearded seal" - is starting out at a modest 2,000 to 3,000 barrels per day.
Once the full stable of 40 wells are drilled over the next three years, the field is expected to peak at up to 20,000 barrels per day in 2010, Pioneer said.
All the fields on the Slope - including the nation's largest, Prudhoe Bay - currently average a combined 715,000 barrels per day.
Ultimately, Oooguruk is expected to yield 90 million barrels over 25 to 30 years. By comparison, Prudhoe has topped 12 billion barrels since it started in 1977.
Pioneer's minority partner in the $500 million project is Italian oil and gas giant Eni, which holds a 30 percent stake.
Pioneer is a large independent with operations in the United States, South Africa and Tunisia.
The company said it "set a new precedent for North Slope offshore development" by bringing Oooguruk online in less than five years.
Kevin Banks, state oil and gas director, said the new field is good news for Alaska and for the outlook of the state's oil and gas industry.
"A lot of people came together to make this happen," he said. "I congratulate Pioneer."
The new oil field is significant for several reasons, Banks said.
First, it means a new company is running an oil field on the Slope, he said, with several other companies also pursuing fields considered too small to interest global titans such as BP, Conoco and Exxon Mobil, which holds a big share of Prudhoe Bay.
Pioneer also achieved a breakthrough deal to have its Oooguruk oil processed in existing plants in neighboring Kuparuk, a giant oil field Conoco runs on behalf of itself and other owners.
Being able to share these plants is vital for saving costs and helping smaller companies get involved in the North Slope oil patch, Banks said.
The state also helped advance the new field by reducing the percentage share of oil it will take as a royalty.
The state has made a similar concession to Eni, which has said it will develop another offshore oil field called Nikaitchuq. |
