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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2006

Vol. 11, No. 28 Week of July 09, 2006

Temperatures up, ANS production down

Continuing pipeline shut-in at Lisburne has production there down 19%, May to June; overall, North Slope down 3.6%

Kristen Nelson

Petroleum News

A triple whammy of seasonally warmer temperatures, which reduce compressor efficiency, continued pipeline shut-ins at Lisburne and declining output from older fields resulted in a 3.6 percent drop in Alaska North Slope crude oil production from May to June.

The June average was 792,592 barrels per day compared to an average of 822,413 bpd in May. June production was down 8 percent from June 2005 when production averaged 863,755 bpd.

The BP Exploration (Alaska)-operated Lisburne Production Center, hit by corrosion-driven pipeline shut-ins in May, had the largest percentage May-to-June production drop, 19 percent. June production from Lisburne (which also includes Point McIntyre and Niakuk) averaged 15,308 bpd compared to a May average of 18,938 bpd.

The Department of Revenue said the May 8 pipeline shut-in affected some 20,000 bpd; production peaked at 34,624 bpd May 4 before the lines were shut down. BP said in June that it was in the engineering phase of replacing two segments of line at Lisburne that have been shut in, pipe has been ordered and the replacement work will be done this winter.

Production at the ConocoPhillips Alaska-operated Alpine field was down 6 percent, averaging 116,077 bpd in June, compared to 123,504 bpd in May.

Prudhoe down 4.3%

BP-operated Prudhoe Bay had a 4.3 percent decline from May to June, averaging 369,005 bpd in June compared to 385,765 bpd in May. Production from Prudhoe includes western Prudhoe satellites Midnight Sun, Aurora, Polaris, Borealis and Orion.

BP’s Milne Point field averaged 38,800 bpd in June, down 3.2 percent from a May average of 40,060 bpd.

The BP-operated Endicott field (which includes Sag Delta, Eider and Badami production) averaged 20,402 bpd in June, down 1.7 percent from a May average of 20,764 bpd.

ConocoPhillips-operated Kuparuk River field (which includes West Sak, Tabasco, Tarn, Meltwater and Palm production) averaged 176,858 bpd, down 1.7 percent from a May average of 179,920 bpd.

BP-operated Northstar, where Revenue said high-pressure compressor work continues with additional output decrease noted June 5-6, had the only May-to-June production increase, up 5 percent, averaging 56,142 bpd in June compared to 53,452 bpd in May. Production from the field varied between 62,846 barrels on June 12 and 41,606 barrels June 29.

Revenue said the June temperature at Pump Station No. 1 on the North Slope averaged 47.4 degrees Fahrenheit, compared to a five-year June average of 41 degrees F.

Cook Inlet production was down 0.5 percent, averaging 17,370 bpd in June, compared to 17,458 bpd in May.






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