Alaska's source for oil and gas news
Alaska's source for oil and gas news
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Santos undertook its first drilling operations for Pikka Phase 1 in June with the powerful Parker 272 rig. In the months that followed it completed five wells, is on the sixth now, and is about to move to the seventh. (See slides in the online issue PDF) The company is focused on its Pikka Phase 1 development, but in commenting on a Santos North Slope map Joe Balash, Santos senior vice president of external affairs, said "as you move in sort of a clockwise fashion you see Quokka and Horseshoe as well as some non-unitized acreage. We are a...
Alaska North Slope crude edged up 33 cents Feb. 7 to close at $79.41 per barrel, as West Texas Intermediate added 55 cents to close at $73.86 and Brent added 62 cents to close at $79.21. It was the third day of gains, coinciding with a setback in U.S.-backed peace talks aimed at a ceasefire between Israel and Hamas in Gaza. On Feb. 7, Hamas answered a peace proposal from the talks with a counteroffer asking for the release of thousands of Hamas prisoners, but Israeli Prime Minister Benjamin Netanyahu rejected the terms. "Giving in to Hamas's bi...
The Alaska Department of Natural Resources' Division of Oil and Gas was supportive of independent Jade Energy's efforts to drill an exploration/appraisal well into BP's mid-1990's Sourdough discovery until the division inserted default conditions in Jade's fifth plan of development -- conditions the small company had to agree to before DNR would approve the POD. The conditions were as follows: -- On or before July 1, 2023, Jade will provide evidence to the division that Jade has funding for the well it plans to drill in Q1/Q2 of 2024. -- On or...
During a Feb. 6 meeting of the Alaska House Energy Committee, officials from Enstar Natural Gas Co., the gas utility for Southcentral Alaska, told the committee that the utility does not have sufficient gas supplies under firm contract to fully meet its anticipated gas demand in 2025. The utility obtains all of its gas from Cook Inlet oil and gas producers, primarily Hilcorp Alaska. (See slide in the online issue PDF) "We have not yet had a communication with a producer that's willing at this point to supply that gas under firm contract," John...
As previously reported by Petroleum News, in Santos Ltd.'s fourth quarter report released on Jan. 25, Santos Managing Director and Chief Executive Officer Kevin Gallagher said that Santos continues to be "in early-stage discussions to evaluate the merits of a potential merger with Woodside. The parties have agreed to exchange information to assess the benefits for our shareholders. Santos continues to consider alternative options to accelerate value for shareholders. There is no certainty that any transaction will eventuate from these...
TC Energy has disclosed it is holding talks with First Nations groups in Alberta and British Columbia about a potential deal to acquire a stake in the company's natural gas pipeline network, NGTL. Meetings started before Christmas and are expected to continue in Edmonton said Nillo Edwards, executive director of the B.C.-based First Nations Major Projects Coalition that works with Indigenous communities that are interested in equity positions in major projects that cross traditional territories. Edwards said the prospect of deals should...
The House Resources Committee has heard two bills designed to encourage development of more Cook Inlet natural gas: The governor's proposal, House Bill 276 (Senate Bill 194) and a bill by Rep. Tom McKay, chair of House Resources, HB 257 (no companion bill in the Senate). HB 276 had an initial hearing Jan. 31 -- the companion bill, SB 194, has not yet had a committee hearing; both bills had initial referrals to Resources in their respective bodies, followed by Finance. Revising existing statute HB 276 "modernizes a long-standing royalty reductio...
The Baker Hughes' U.S. rotary drilling rig count was 619 for the week ending Feb. 2, down by two rigs from 621 the previous week, and down by 140 from 759 a year ago. The rig count decreased in five of the last eight weeks, with a loss of 11 rigs against a gain of four rigs over the period, continuing a downward trend dominant since the beginning of May. A drop of 17 to 731 on May 12, 2023, was the steepest weekly drop since June of 2020, during the first year of the COVID-19 pandemic, when the count also dropped by 17 to 284 on June 5,...
Citing persistent economic headwinds, Canadian pipeline giant Enbridge says it will cut 60 jobs in February less than five months after it became North America's largest natural gas utility by acquiring three U.S. utilities for US$9.4 billion. Enbridge said in a statement that "cost reduction measures are necessary to maintain our financial strength, be more cost competitive and enable us to weather near-term challenges. While we delivered a strong financial performance in 2023, cost reduction measures are necessary." Enbridge said its...
One of oldest oil and gas office towers in downtown Calgary is a gaining a new tenant, with Canadian Natural Resources moving into the Shell Canada Center in 2025 and 2026. Built in 1977, the high rise has total space of more than 640,000 square feet and will be entirely occupied by CNR. Shell vacated the 32-storey landmark last year. The shuffle will temporarily take two large chunks of office space off the market said Mason Lam, senior vice-president at Jones Lang LaSalle Inc., a Calgary-based real estate services firm. Lam said the moves...
Hilcorp Alaska has applied to the Alaska Department of Natural Resources' Division of Oil and Gas for a unit plan of operations amendment for its Milne Point unit, allowing it to expand B Pad and install a pipe wash and inspection facility, the division said in a Jan. 31 public notice. The division is accepting comments on the proposal through 4:30 p.m. March 1. In its Jan. 26 request, Hilcorp said it planned to expand Pad B at Milne Point and construct a pipe wash and inspection facility "to improve efficiency for washing and inspecting pipes...
The U.S. Energy Information Administration said Feb. 6 that it estimates U.S. natural gas consumption reached 118 billion cubic feet per day in January, a new high which came in response to cold weather in the Lower 48. "The cold weather last month sent us into record-setting natural gas consumption territory for a few days, but we expect less than average consumption going into February and March," said EIA Administrator Joe DeCarolis. "Any late-winter cold snaps could introduce significant volatility back into the natural gas market," he...
The Alaska Department of Environmental Conservation's Division of Spill Prevention and Response said in its Feb. 2 final situation report on the Point Thomson Export Pipeline leak that installation of the repair clamp was completed Jan. 28, establishing source control. Harvest Alaska LLC, which operates the line, received a leak detection alarm Jan. 13 at 10:19 p.m. and isolated the line, with visual confirmation of the leak observed via aircraft Jan. 14 at 11:54 a.m. DEC said that following the leak alarm the line was shut in and...
The Alaska Oil and Gas Conservation Commission is fining Hilcorp North Slope, operator of the Prudhoe Bay unit, $452,100 for violations involving unauthorized injection into the Schrader Bluff oil pool in the L-109 well in the Orion development area and unauthorized injection into the Polaris/Aurora oil pools in the S-104 well. The violations were reported by Hilcorp -- the Prudhoe Bay unit Orion L-109 on June 27 last year and the Polaris/Aurora water injector S-104 on July 21. Hilcorp told the commission in a July email that the second well...
Alaskan Crude Corp. challenged a decision by the Alaska Oil and Gas Conservation Commission requiring it to bond for three previously drilled wells at the commission's newly established rate of $400,000 per well for up to five wells. The Alaska Superior Court agreed with the commission's decision, but the Alaska Supreme Court, in an April 5, 2023, decision, remanded the appeal back to Superior Court to be remanded back to the agency. In a Feb. 6 decision, AOGCC said that under its regulations it "can decrease the presumptive bonding amount...
Editor's note: This story first appeared in the Feb. 1, 2004, issue of Petroleum News. The dream that was Redoubt Shoal -- solid new oil production from Alaska's mature Cook Inlet basin -- started to fade in August when Forest Oil said it had unsatisfactory results from two wells and was reevaluating the reservoir. The final wake-up call came Jan. 27, 2004: Forest said it has completed an integrated field study of the Redoubt Shoal field and is reducing estimated proved reserves by 49 million barrels, to 8 million barrels. Forest also said it...
Gov. Mike Dunleavy has introduced bills to the Alaska House and Senate that, if passed, would radically change the way in which large electrical transmission systems in Alaska are funded. The proposed legislation would particularly impact the Alaska Railbelt transmission system. Currently the pancaking of electricity transmission fees across sectors of the Railbelt transmission grid owned by different entities significantly elevates long distance transmission costs. This acts as an impediment to the viable use of the entire system for the...
Editor's note: This story first appeared in the Feb. 1, 2004, issue of Petroleum News. Oil prices are likely to maintain current higher levels over the coming year, according to Petroleum News' favorite oil price guru, Roger Herrera, a long-time oil and gas consultant who works with Arctic Power in Washington, D.C. "The world is used to $30 oil," Herrera said. "Economic growth is thriving at that level." Growth in world oil demand is the main factor that will keep the air under prices, he said. The coming year looks stable, even placid for a...
The Alaska Railroad said recently that it is seeking entries for its annual commemorative artwork program by April 5. ARRC commissions the selected artist to create artwork as the basis for ARRC's official 2025 commemorative print. Established in 1979, the program helps participating artists gain exposure with a connection to a beloved icon of Alaska. Artist submissions must include an Alaska Railroad theme depicting an ARRC train along one of its iconic routes. Once a winning entry is selected, ARRC will commission the artist to create a...
