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Week of May 31, 2020

  • Exciting outlook - 05/31/2020  Although the COVID-19 pandemic brought an early end to this winter's exploration season on Alaska's North Slope, there is continuing interest in oil discovery opportunities in the Nanushuk formation, the focus of major new developments at Pikka and Willow. While new exploration drilling by Oil Searc....

  • Pebble gasline plan gels - 05/31/2020  The route of a subsea and overland natural gas pipeline, from the lower Kenai Peninsula to the site of the proposed Pebble Mine site in southwest Alaska, appears to be taking its final shape due to a recent decision from the U.S. Army Corps of Engineers on a preferred development alternative for the....

  • XL showdown shapes up - 05/31/2020  If Joe Biden moves into the White House in January he could immediately find himself in a cross-border sniping exchange with Canada. In a statement issued by his campaign office on May 17, the presumptive Democratic nominee has promised to” once and for all” end a battle that began 12 years ago when....

  • Hilcorp's Whiskey Gulch strat well tests get DNR approval - 05/31/2020  On May 15 the Alaska Department of Natural Resources' Division of Oil and Gas approved Hilcorp Alaska's lease plan of operations for the Whiskey Gulch stratigraphic well test program on the southern Kenai Peninsula north of Anchor Point. Hilcorp, which applied for the POO on April 23, anticipates dr....

  • Alyeska lifts flow restrictions; prorations ended: Noon, May 22 - 05/31/2020  Alyeska Pipeline Service Co. eliminated the proration on North Slope connectors to the trans-Alaska pipeline system, lifting restrictions on oil throughput effective May 22 at noon. The proration began April 24 with a 10% cut to production, increased to a 15% reduction on May 8, and was subsequently....

  • Bidding opened May 19 for state's first online lease sales - 05/31/2020  In a year when in-person oil and gas lease sales would have been problematic, the Alaska Department of Natural Resources had already positioned the state to hold online sales, having updated its regulations and contracted with an online sales provider. Using the new online system, bidding opened Ma....

  • Burying bone of contention: Alberta, Canada negotiate methane - 05/31/2020  Agreement on anything these days between the Alberta and Canadian governments is a rare event, thus the settlement of a feud that has spanned years over controlling methane emissions is a milestone. The deal bringing emissions of the potent gas from Alberta's oil and natural gas operations into line....

  • US rig count continues down: new low 318 - 05/31/2020  Baker Hughes' weekly count of rotary rigs drilling in the U.S., issued since 1944, continues to drop, setting a new low of 318 for the week ending May 22, down 21 from the previous week and down 665 from a year ago. Prior to this year, the low count by the Houston oilfield services company was 404....

  • Fairbanks air quality extension denied - 05/31/2020  The Environmental Protection Agency has published a proposed rule rejecting the State of Alaska’s request to extend by a further five years the required date for attainment of acceptable air quality standards in the Fairbanks North Star Borough. In 2017 EPA had ruled that the state had to prepare a....

  • BRPC begins Mustang demob - 05/31/2020  On May 20. Harry Bockmeulen, chief operating officer, Brooks Range Petroleum Corp., received approval from the Alaska Division of Oil and Gas to de-inventory pipelines and demobilize equipment and materials at the Mustang pad in the Southern Miluveach unit, as requested April 20 in BRPC’s proposed a....

  • FERC has approved; economics remain issue - 05/31/2020  On May 21 the Federal Energy Regulatory Commission authorized the Alaska Gasline Development Corp. to construct and operate the Alaska LNG Project. In addition to required permits, AGDC is still working on the project’s economics. In a presentation to the AGDC board after FERC’s May 21 announcemen....

  • CORRECTION: First Badami Killian well was B1-38 - 05/31/2020  In a May 1 Petroleum News bulletin about Badami shutting in production that went out to all the newspaper’s subscribers, the first Killian sands producing oil well was listed as B1-07, which was drilled by Savant Alaska after it had been purchased by Miller Energy and Miller had emerged from bankrup....

  • CORRECTION: Error in Alaska lease report in May 24 issue - 05/31/2020  The following sentence in the May 24 issue of Petroleum News was inadvertently included in the Alaska lease report story, “Pay leeway in April Alaska lease activity”: And the division had the sole power to decide whether the lessee had exercised “reasonable diligence in exploring and developing the....

  • Division of O&G approves Prudhoe IPA POD - 05/31/2020  The Alaska Division of Oil and Gas has approved BP Exploration (Alaska)’s 2020 plan of development for the initial participating areas at the Prudhoe Bay unit. The POD was received March 26, the division said in a May 13 approval, and said an April 1 letter from BP advised the division that “operati....

  • Paid message to Gov. Dunleavy and Alaska legislators from oilman Jim White: - 05/31/2020  The true backbones of Alaska are the Alaska Natives, pre-statehood residents and homesteaders that voted and created this great state. They are the forgotten real heroes of Alaska “RESULTS ALWAYS DEFINE INTENT” Alaska has been a state the last 60+ years. Since Alaska became a state some 60 years ag....

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