The persistence of low oil prices over the past two years has been a challenge for all Alaska oil and natural gas producers and by extension for their suppliers and contractors.
But as The Producers shows, each producer responded to the challenge differently.
Caelus and Eni both suspended their development programs in the short-term while keeping an eye on longer-term projects to pursue when prices improve. BP dramatically slowed its development program after having ramped up considerably in recent years.
Hilcorp eased its furious pace of activity at its Cook Inlet properties while increasing investment at its new North Slope properties, specifically Milne Point. ConocoPhillips took a similar approach - slowing the Drill Site 1H project and reducing some infill drilling while continuing work at Drill Site 2S, expanding CD-5 and sanctioning GMT-1.
BlueCrest and Furie both brought new offshore Cook Inlet developments online over the past year but also proceeded cautiously. BlueCrest postponed a proposed gas development at Cosmopolitan for the time being while Furie balanced its desire to expand Kitchen Lights production with the realities of the local marketplace. Both projects reveal the peculiarities of the Cook Inlet natural gas market, which has stepped back from the brink of a few years ago but remains challenging for smaller producers.
ExxonMobil brought the Point Thomson unit into production, but uncertainty about the future of the project is overshadowing the major milestone in North Slope history.
Brooks Range Petroleum resumed development work at the Mustang field on the North Slope. While financing remains challenging, the company expects a late 2017 startup.
Glacier emerged from bankruptcy protection this year and is already proving to be much leaner than its predecessor Miller Energy, having eliminated some longer-term exploration projects from its portfolio to focus on development. Aurora appeared eager to explore and develop before starting the bankruptcy process this year. Whether the company will retain that eagerness afterward, or change its approach, remains to be seen.
AIX Energy and the North Slope Borough carried on this year much as they carried on last year, showing that some projects are immune to aspects of the global economy.
