State asks funding to acquire right of way for natural gas pipeline

Sen. Murkowski backs adding gas line incentives to federal tax bill

Alaska North Slope production averaged 738,357 barrels per day in February, up 4.98 percent from a January average of 703,318 bpd. There were weather-related Valdez tanker delay loadings in the early part of January which dropped average production in that month almost 4 percent from December. Prudhoe Bay had the largest month-to-month increase, averaging 366,445 bpd in February, up 6.4 percent from a January average of 344,391 bpd. Lisburne and Alpine each had production increases of 5.9 percent from January to February, with Lisburne averaging 37,211 bpd in February, up from 35,140 bpd in January and Alpine averaging 110,428 bpd in February, up from 104,283 bpd in January. Kuparuk River averaged 156,415 bpd in February, up 4.7 percent from a January average of 149,388 bpd. Milne Point averaged 30,509 bpd in February, up 4.7 percent from a January average of 29,687 bpd. Both Endicott and Northstar had month-over-month production declines, with Northstar averaging 23,483 bpd in February, down 0.9 percent from a January average of 23,704 bpd and Endicott averaging 13,866 bpd in February, down 17 percent from a January average of 16,725 bpd. Cook Inlet production averaged 11,712 bpd in February, down 4 percent from a January average of 12,200 bpd. See stories in March 8 issue of Petroleum News, available uring the current economic climate. Scaroni said a January 2007 decision not to enter the high cost Canadian oil sands was “one of the wisest decisions I’ve ever taken in my life,” but added that unconventional prospects in Venezuela and the Congo remain profitable even at lower oil prices, saying, “Our unconventional oil is much better than some other unconventional oil.” Scaroni also said Eni likes its position in the Gulf of Mexico and hopes to remain a presence there, but added, “Other areas of the world might be under scrutiny to make sure that either they are material, or we have enough perspectives in order to make them material one day.” He did not elaborate or mention any specific areas under review. Eni is projecting oil prices to average $43 barrel oil this year and $55 barrel in 2010, and said a “vast amount” of its international portfolio would break even at $35 a barrel prices. The company sanctioned Nikaitchuq after the state agreed to reduce the royalty rate on many leases at the unit during periods of time when the delivered price of Alaska North Slope crude oil falls below an inflation-adjusted threshold of $42.54 per barrel. While that price seemed unlikely when the state made its decision in December 2007, as Alaska North Slope crude traded around $90 a barrel, it tracks fairly closely with current oil prices, which have moved between $32 and $48 a barrel since the start of the year.

ANS production up 5%