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Providing coverage of Alaska and northern Canada's oil and gas industry
October 2018

Vol. 23, No.1 Week of October 07, 2018

Arctic Directory 2018: BP Alaska: Prudhoe Proud for 50 years

Pioneering the past, fueling Alaska’s Future

Petroleum News

Q. What is the official name of your company?

A. BP Exploration (Alaska) Inc.

Q. Is your firm a subsidiary or affiliate of other companies? If so, please name those firms and their relationship to your company.

A. Parent company BP PLC

Q. What is your company’s history and primary business

activity?

A. BP began working in Alaska in 1959, started drilling at the massive Prudhoe Bay oil field in 1968, and helped to build the Trans-Alaska Pipeline System in the mid-1970s. Since Prudhoe Bay began production in 1977, it is has produced nearly 13 billion barrels of oil - far exceeding initial projections of 9.6 billion barrels - thanks in part to enhanced oil recovery technologies that BP pioneered. It remains the most prolific oilfield in American history. Today, BP Alaska operates the entire Greater Prudhoe Bay area, which produced an average of nearly 281,000 barrels of oil equivalent per day in 2017, accounting for more than half the state’s oil and gas.

Q. How many employees does your company have?

A. More than 1,500 Alaska employees

Q. What have been the major developments and milestones for BP in Alaska over the past year?

A. BP Alaska is the operator at Prudhoe Bay, one of North America’s largest oilfields. Our commitment continues to be on safe and reliable operations and minimizing oil production decline. Prudhoe Bay remains the third-largest oil field in the U.S. by proved reserves. We have increased our focus on managing our deep resource base at the massive Prudhoe Bay oilfield and help enable a more competitive and sustainable business for BP in Alaska.

The Greater Prudhoe Bay area, which produced an average of nearly 281,000 barrels of oil equivalent per day in 2017, accounts for more than half the state’s oil and gas. Between 2015 and 2017, BP Alaska held Prudhoe Bay production levels constant for three straight years, something that’s virtually unheard of in a 40-year-old field.

Meanwhile, BP Alaska improved its operating efficiency from 80 percent to upwards of 85 percent. That represents an additional 10,000 to 15,000 barrels of oil flowing through TAPS every day - the equivalent of adding a whole new field within Prudhoe Bay.

BP believes Alaska is uniquely positioned to support the global energy transition, both by producing oil more efficiently and by supplying the world with liquefied natural gas from Prudhoe Bay. Over the past several years, BP Alaska has worked with industry partners and the state government to advance the Alaska LNG project. If sanctioned, this project would move North Slope gas to overseas markets, allowing Alaska to play a key role in the global gas transition.

BP Alaska is doing its part to make that happen. In May 2018, the company announced a gas sales precedent agreement between BP Alaska and the Alaska Gasline Development Corp. - an important milestone in moving the project forward.

Q. What is your company’s plans for the upcoming year?

A. BP Alaska plans to complete a new 3D seismic survey of the Prudhoe Bay operating area in 2019, using proprietary, state-of-the-art technology. The survey will provide high seismic coverage to support new drilling and well work, which will help BP Alaska further prolong the life of the field. The data acquisition will cover ~ 450 sq. miles.

Q. How does your company support the Alaska economy?

A. Through its investments and operations, BP Alaska makes enormous contributions to Alaska’s economic and fiscal health. It supports more than 10,000 jobs across the state, and in 2017 alone it spent more than $857 million with vendors in Alaska, while paying $543 million in taxes, royalties and other government payments.

In Alaska, the oil and gas industry remains the backbone of Alaska’s economy; with over 103,875 jobs attributable to oil and gas investment and activity, representing 32 percent of all jobs and 35 percent of all Alaska wages. These Alaska Oil and Gas Assoc. statistics include the direct and indirect jobs generated in the oilfield services contracting industry.

Q. Does your company have an anniversary or other landmark event coming up?

A. Prudhoe Bay marked its 41st year of production June 20.

Q. What is your company’s safety and environmental record? What steps does the company take to ensure a safe work environment?

BP is committed to safe, sustainable and responsible development of oil and gas resources to support America’s energy security. The safety of our workers and protection of the environment are our top priorities.

At BP, we are also committed to supporting the energy transition to a lower-carbon economy - this is closely tied to our larger business strategy. We’re working to reduce emissions in our operations, improve our products and create new low-carbon businesses. But even under highly aggressive carbon-reduction scenarios, oil and gas remain a significant part of the global energy mix for decades to come.

The global transition to a lower-carbon economy is not about renewables alone. It’s about making every type of energy cleaner and better. The State of Alaska is uniquely positioned to lead and benefit from this transition and could supply the world with liquefied natural gas from Prudhoe Bay. No single fuel is more important to the global energy transition than natural gas.

In the short term, gas can help us dramatically reduce CO2 emissions in the power sector. For example, the recent growth of natural gas in electricity generation is the main reason that America’s energy-related CO2 emissions declined by 14 percent between 2005 and 2017. Over the longer term, gas can provide essential backup generation for renewables.

Thanks to the massive resources at Prudhoe Bay, Alaska can - and should - play a major role in the global gas revolution. The most important thing for Alaska, and for America as a whole, is to get the fundamentals right - fundamentals like policy, efficiency and technology.

Q. Has your company been involved in any community projects or charity events?

A. BP Alaska is one of the largest private-sector investors in Alaska, and BP's investments extend beyond its business to the communities where the company operates and where BP's employees and their families live. In 2017, the company donated more than $3 million to Alaska community organizations and our employees volunteered more than 6,000 hours each year.

Over the past 30 years, the company has awarded more than $3.5 million to 825 graduating high school seniors from across the state as part of the Principals’ and Commissioner’s Scholarship program. Meanwhile, the BP Teachers of Excellence program receives more than 1,000 Alaska teacher nominations each year, and it has recognized around 800 teachers since 1995.

In addition, more than 500 education and community groups us the BP Energy Center each year. The BP Energy Center serves as a training, meeting and conference center for nonprofits and education organizations throughout Alaska. A large multi-purpose room and five meeting rooms are available without charge to eligible organizations.

Q. What is the address of your company’s Web site?

A. https://www.bp.com/alaska






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