Oil companies plan to curtail work on North Slope
by The Associated Press
2 months ago | 1278 views | 5 5 comments | 5 5 recommendations | email to a friend | print
ANCHORGE, Alaska - Two oil and gas companies plan to cut back their investment in Alaska next year, but another is expanding.

ConocoPhillips said it won't drill a new exploration well in the state next year, and BP said it's cutting its Alaska spending by 15 percent. Exxon Mobil, however, said it is "100 percent" behind developing new wells at Point Thomson, a large oil and gas unit 60 miles east of Prudhoe Bay.

The updates were part of the Resource Development Council's annual conference, which ends Thursday.

Gov. Sean Parnell addressed the conference Wednesday, promising to fight efforts to list additional Alaska species as endangered.

The governor said he's seeking $800,000 in state funding for outside attorneys to fight listing efforts and wants to create a new attorney position within the state Department of Law just to handle endangered species issues.

If Conoco follows through on its plans, it will mark the first year since 1965 that it has not drilled a new exploration well in Alaska. The company plans to focus its spending on developing its Chukchi Sea leases, said Helene Harding, vice president of North Slope operations and development.

"We're shifting our focus offshore," she said.

Harding noted that the company has been an aggressive explorer on the North Slope in recent years. It has drilled about 56 wells since 1999, but many didn't prove worth developing.

The company said it believes the state's recent revisions to oil taxes will harm industry investment and cause job losses.

BP plans to work on projects such as the proposed North Slope gas pipeline to supply North American markets and its new $1.5 billion Liberty oil field in the Beaufort Sea.

But John Minge, president of BP Exploration (Alaska) Inc., said his company faces three big challenges in Alaska right now: oil production continues to decline, costs are rising and taxes have increased.

He said investing in the Gulf of Mexico is more appealing because the tax structure "is more inviting."

comments (5)
« IH8TMYEXWIFE wrote on Thursday, Nov 19 at 06:27 PM »
So what is gas gonna go up to six bucks a gallon now.
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« rocksteady wrote on Thursday, Nov 19 at 01:35 PM »
exxon is developing pt thompson and they have employed a lot of union workers but not 1 out of 10 is from alaska i should know i helped build pt thompson last winter and was 1 out of 10 from alaska.name a state and you cant go wrong at least 1 from every state and a lot from foreign countries but only 1 out of 10 from alaska.this is why alaskas economy is so bad.exxon has not paid a nickel for the exxon valdez hemmorage.alaska airlines is promoting this instate terrorism thats why they named the anchorage airport ted stevens airport slash veco.
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« chillyagain wrote on Thursday, Nov 19 at 12:48 PM »
And today in Florida, gas prices are roughly $2.59. What are they here again? Maybe we'd get cheaper gas if it came from the Gulf of Mexico. Pumping it out of the ground in our own state certainly isn't helping US any!
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« axe2grind wrote on Thursday, Nov 19 at 12:03 PM »
We wouldn't have to spend so much money just to ignore species going extinct if we had taken the steps to ensure higher numbers earlier now would we?

Parnell really likes to bend over for the big oil huh?

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« out_in_the_cold wrote on Thursday, Nov 19 at 10:16 AM »
Anchorage Daily News reported that Exxon was "bullish" on the North Slope and planed to put up to 600 workers on the new gas hydrate refinery.

And sounded like BP and Conoco were grumbling over the tax rate while concentrating their money of the natural gas pipeline.

Yep, Do-ers and Talk-ers .. You ever notice how the Do-ers usually end up with the dollars?
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