|
Alpine’s benefits flow to Alaska Natives Low energy prices frustrate, but Arctic Slope Regional Corp. pleased with performance of Alpine field operator Phillips — ASRC’s out-of-state revenues temper cash flow fluctuations Steve Sutherlin PNA Managing Editor
As a royalty owner, Arctic Slope Regional Corp. is reaping benefits of the first full year of production from the Alpine oil field, and is pleased with the performance of field operator Phillips Alaska Inc., Jacob Adams, ASRC president told the Resource Development Council Jan. 17.
“Phillips was able to stabilize the production early on in the year and continued to strengthen throughput,” Adams said. Phillips maximized flow through the Alpine pipeline and will expand production to a target of 150,000 barrels a day, he said.
For ASRC, the most frustrating aspect of Alpine is the dramatic decrease in oil prices that coincided with the advent of production at the field, Adams said. But Alpine has contributed to the well being of Alaska Natives. ASRC’s Alpine royalties are subject to the revenue sharing provision of the Alaska Native Claims Settlement Act: ASRC must share this wealth among all the regional corporations and has distributed approximately $20 million of Alpine royalties to other Native corporations.
Hanging in on ANWR The defection of a Republican, which changed U.S. Senate leadership, prevented the opening of the coastal plain of the Arctic National Wildlife Refuge for oil and gas exploration, Adams said, but he said he is pleased with progress made on the issue, particularly the 2001 House-passed an energy bill that included opening ANWR.
“Senator Murkowski made a very valiant effort in spite of the monkey wrenches thrown in by the Senate Democratic leadership.” Adams said.
Adams called for continued efforts to get the message to Senate leadership that ANWR is good for U. S. security.
Out-of-state business counteracts local fluctuations The oil and gas service business of ASRC’s Natchiq group continued to expand outside the state on the Gulf Coast, in Canada and in the Russian Far East, Adams said.
No major new fields were announced for 2001 on the North Slope.
“The most likely significant new development on the horizon is the plans announced by Exxon for the Point Thompson area,” Adams said. “While this is good news, BP’s announcement to delay Liberty and the layoffs are not good news. But we have learned to weather the downturns and look forward to better times.”
Refining and petroleum products sales slid in 2001, Adams said. ASRC’s Petro Star Inc. refinery was significantly affected by Sept. 11. Petro Star’s primary markets are home heating fuel, marine and jet fuel for both domestic and military markets. The decline in domestic air travel had a major impact on the jet fuel market.
ASRC’s overall business operations were relatively stable for 2001, with little in the way of acquisitions or major expansion, Adams said, and 2002 revenues will be close to the same as 2001.
Gas should be developed “For everyone in Alaska, the big hope for 2001 was that we would have a decision on the commercialization of natural gas on the North Slope,” Adams said. “The Governor’s task force, U.S. Congress and the public at large all seem to want something, but no one is stepping forward to provide the leadership necessary to see a project carried out.”
Adams said he was concerned that other areas in the United States might eclipse the natural gas project for Alaska.
“The federal government is now looking at opening up vast areas in the Rocky Mountain region with high potential for natural gas,” he said. “As a business leader concerned with the economy of Alaska, I would urge our leaders to sit down with the gas owners to work out a compromise that would allow the natural gas pipeline to go forward.”
Adams said the recent interest companies have shown in Alaska portends a bright future.
“I am encouraged that there appears to be significant interest in NPR-A from some new and smaller players that are considering an increased presence in Alaska. This will offset some of the impact of BP’s apparent entrenchment into more developed areas.”
| 