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Providing coverage of Alaska and northern Canada's oil and gas industry
May 2020

Vol. 25, No.19 Week of May 10, 2020

March ANS crude down 1.8% from February

Largest month-over-month volume gain at Point Thomson, largest volume drop at Prudhoe Bay; Cook Inlet crude down 6.3% from February

Kristen Nelson

Petroleum News

Alaska North Slope production averaged 512,920 barrels per day in March, down 1.8%, 9,501 bpd, from a February average of 522,421 bpd and also down 1.8% from March 2019 when production averaged 522,334 bpd.

Crude oil production averaged 456,325 bpd, 89% of ANS production, down 1.4%, 6,225 bpd from a February average of 462,549 and down 2% from a March 2019 average of 465,742 bpd.

Natural gas liquids production averaged 56,595 bpd, 11% of ANS production, down 5.5%, 3,276 bpd, from a February average of 59,872 bpd and basically unchanged from March 2019 NGL production of 56,592 bpd.

Production data reported here is from the Alaska Oil and Gas Conservation Commission, which provides volumes by field and well on a month delay basis.

Point Thomson

The largest month-over-month increase was at the ExxonMobil-operated Point Thomson field, which averaged 7,601 bpd, up 31.6%, 1,827 bpd, from a February average of 5,774 bpd, although down 21.4% from a March 2019 average of 9,674 bpd. ExxonMobil has had compressor issues at the high-pressure field, resulting in wide production fluctuations. In its most recent plan of development the company told the state it was addressing issues with its gas injection equipment, had begun installing upgraded components and expected to receive and install remaining equipment during the 2020-21 period.

As noted in the April 19 issue of Petroleum News, two compressor trains are now reported to be operating at the field, with an increase in condensate production expected from approximately 5,000 bpd to 10,000 bpd, which is the rated facility capacity at the field, with each of the two trans capable of 5,000-6,000 bpd.

Small increases elsewhere

Several North Slope fields had small month-over-month production increases.

ConocoPhillips Alaska’s Colville River field averaged 51,747 bpd in March, up 1.1%, 541 bpd, from a February average of 51,206, but down 4.4% from a March 2019 average of 54,142 bpd.

In addition to oil from the main Alpine pool, Colville production includes satellite production from Fiord, Nanuq and Qannik.

The ConocoPhillips-operated Kuparuk River field, the Slope’s second largest, averaged 102,382 bpd in March, up 0.5%, 469 bpd, from a February average of 101,913 bpd but down 2.3% from a March 2019 average of 104,830 bpd.

In addition to the main Kuparuk pool, Kuparuk produces from satellites at Meltwater, Tabasco and Tarn, and from West Sak.

The Hilcorp Alaska-operated Endicott field averaged 7,426 bpd in March, up 2.8%, 201 bpd, from a February average of 7,225 bpd and up 1.6% from a March 2019 average of 7,313. Endicott production averaged 6,569 bpd of crude in March, up 4%, 253 bpd from 6,316 bpd in February, and up 2% from a March 2019 average of 6,443, and 857 bpd of NGLs in March, down 5.7%, 52 bpd, from a February average of 909 bpd and down 1.5% from a March 2019 average of 870 bpd.

Eni’s Oooguruk averaged 8,719 bpd in March, up 0.5%, 47 bpd, from a February average of 8,672 bpd, and up 10.2% from a March 2019 average of 7,912 bpd.

Month-over-month declines

The largest month-over-month decline was at the Slope’s largest field, the BP Exploration (Alaska)-operated Prudhoe Bay, which averaged 269,686 bpd in March, down 3.4%, 9,555 bpd, from a February average of 279,241, and down 1.5% from a March 2019 average of 273,766 bpd.

Crude production at Prudhoe averaged 217,045 bpd in March, down 2.8%, 6,269 bpd, from a February average of 223,314 bpd and down 1.8% from a March average of 220,977, while the fields NGL production averaged 52,641 bpd in March, down 5.9%, 3,286 bpd, from a February average of 55,927 bpd and down 0.3% from a March 2019 average of 52,789 bpd.

In addition to the primary reservoir, production volumes from Prudhoe include Aurora, Borealis, Lisburne, Midnight Sun, Niakuk, Polaris, Point McIntyre, Put River, Raven and Schrader Bluff.

The Hilcorp-operated Milne Point field averaged 30,624 bpd in March, down 4.2%, 1,336 bpd, from a February average of 31,960 bpd, but up 33.7% from a March 2019 average of 22,910 bpd.

Hilcorp has been working to increase production from the field since it acquired a 50% interest and took over operatorship in 2014. In February, before the oil price crash, the company said it expected to reach 40,000 bpd at the field by the end of this year.

Eni’s Nikaitchuq averaged 18,956 bpd in March, down 5.4%, 1,089 bpd, from a February average of 20,044, but up 14.7% from a March 2019 average of 16,527 bpd.

The Hilcorp-operated Northstar field averaged 9,636 bpd in March, down 2.9%, 288 bpd, from a February average of 9,925 bpd and down 13.5% from a March 2019 average of 11,133 bpd.

Northstar production included an average of 6,539 bpd of crude oil in March, down 5.1%, 350 bpd, from a February average of 6,888 bpd and down 20.3% from a March 2019 average of 8,200 bpd, and a March average of 3,098 bpd of NGLs, up 2%, 61 bpd, from a February average of 3,036 bpd and up 5.6% from a March 2019 average of 2,933 bpd.

ConocoPhillips’ Greater Mooses Tooth in the National Petroleum Reserve-Alaska averaged 4,892 bpd in March, down 4.2%, 213 bpd, from a February average of 5,105 bpd, and down 60.3% from a March 2019 average of 12,310 bpd.

Badami, operated by Glacier Oil and Gas Co.’s Savant Alaska, averaged 1,252 bpd in March, down 7.7%, 105 bpd, from a February average of 1,357 bpd and down 31.1% from a March 2019 average of 1,817 bpd.

Cook Inlet crude down 6.3%

Crude oil production from the Cook Inlet basin in Southcentral Alaska averaged 13,228 bpd in March, down 6.3%, 888 bpd, from a February average of 14,116 bpd and down 13.7% from a March 2019 average of 15,329 bpd.

Hilcorp Alaska’s McArthur River field, Cook Inlet’s largest, averaged 4,075 bpd in March, down 4.7%, 200 bpd, from a February average of 4,275 bpd and down 16.9% from a March 2019 average of 4,903 bpd.

Hilcorp’s Granite Point field averaged 3,258 bpd in March, down 2.7%, 90 bpd, from a February average of 3,348 bpd, but up 20% from a March 2019 average of 2,714 bpd.

Hilcorp’s Trading Bay field averaged 1,324 bpd in March, up 1.8%, 24 bpd, from a February average of 1,300 bpd but down 9.5% from a March 2019 average of 1,462 bpd.

Middle Ground Shoal, another Hilcorp field, averaged 1,245 bpd in March, down 1.2%, 15 bpd, from a February average of 1,260 bpd and down 11.5% from a March 2019 average of 1,408 bpd.

BlueCrest’s Hansen field averaged 1,068 bpd in March, down 6.3%, 72 bpd, from a February average of 1,140 bpd, and down 31.6% from a March 2019 average of 1,562 bpd.

Hilcorp’s Swanson River averaged 919 bpd in March, down 1.9%, 19 bpd, from a February average of 938 bpd and down 16.7% from a March 2019 average of 1,104 bpd.

Redoubt Shoal, operated by Glacier’s Cook Inlet Energy, averaged 904 bpd in March, down 30.6%, 399 bpd, from a February average of 1,303 bpd and down 28% from a March 2019 average of 1,256 bpd.

West McArthur River, also operated by Glacier’s CIE, averaged 254 bpd in March, down 23.3% from a February average of 331 bpd and down 56.2% from a March 2019 average of 579 bpd.

Hilcorp’s Beaver Creek averaged 180 bpd in March, down 18.8%, 42 bpd, from a February average of 222 bpd and down 47.2% from a March 2019 average of 341 bpd.

ANS crude oil production peaked in 1988 at 2.1 million bpd; Cook Inlet crude oil production peaked in 1970 at more than 227,000 bpd.





March Cook Inlet gas production drops 2.6%

Natural gas production from Southcentral Alaska’s Cook Inlet basin averaged 211,619 mcf per day in March, down 2.6%, 11,800 mcf per day, from a February average of 223,304 mcf and down 3% from a March 2019 average of 218,334 mcf per day.

This data is from the Alaska Oil and Gas Conservation Commission, which reports production on a month-delay basis. For natural gas AOGCC reports measurements in thousands of cubic feet, mcf.

Production is dominated by seven large fields, which account for 82% of Cook Inlet natural gas production.

The largest is Hilcorp Alaska’s Ninilchik field, which averaged 38,154 mcf in March, 18% of inlet gas production, down 11.4%, 4,930 mcf per day, from a February average of 43,083 mcf per day, but up 2.4% from a March 2019 average of 37,244 mcf per day.

Hilcorp’s Kenai gas field averaged 36,060 mcf per day in March, 17% of inlet production, up 4.6%, 1,590 mcf per day, from a February average of 34,471 mcf and up 4.9% from a March 2019 average of 34,364 mcf per day.

Swanson River, another Hilcorp field, averaged 32,265 mcf per day in March, 15.3% of inlet production, down 5.8%, 1,989 mcf per day, from a February average of 34,254 mcf and down 9.7% from a March 2019 average of 35,715 mcf per day.

Hilcorp’s McArthur River averaged 20,264 mcf per day in March, 9.6% of inlet production, down 2.2%, 454 mcf per day, from a February average of 20,718 mcf and down 15.1% from a March 2019 average of 23,879 mcf per day.

Beluga River, operated by Hilcorp, averaged 18,578 mcf per day in March, 8.8% of inlet production, down 0.7%, 139 mcf per day, from a February average of 18,717 mcf and down 32.1% from a March 2019 average of 27,360 mcf per day.

Hilcorp’s North Cook Inlet field averaged 14,023 mcf per day in March, 6.6% of inlet production, down 26.5%, 5,049 mcf per day, from a February average of 19,071 mcf and down 4.9% from a March 2019 average of 14,738 mcf per day.

Furie’s Kitchen Lights averaged 13,927 mcf per day in March, 6.6% of inlet production, down 3%, 432 mcf per day, from a February average of 14,360 mcf but up 528.9% from a March 2019 average of 2,215 mcf per day, when the company was recovering from hydrate blockages in its lines.

Smaller gas fields

Hilcorp’s Beaver Creek averaged 7,246 mcf per day in March, up 2.8%, 195 mcf per day, from a February average of 7,051 mcf but down 11.2% from a March 2019 average of 8,163 mcf per day.

Hilcorp’s Cannery Loop field averaged 4,829 mcf per day in March, up 1.1%, 51 mcf per day, from a February average of 4,779 mcf and up 14.9% from a March 2019 average of 4,200 mcf per day.

Hilcorp’s Deep Creek averaged 4,092 mcf per day in March, down 0.5%, 22 mcf per day, from a February average of 4,113 mcf and down 17.5% from a March 2019 average of 4,962 mcf per day.

Hilcorp’s Granite Point averaged 3,483 mcf per day in March, up 0.5%, 18 mcf per day, from a February average of 3,465 mcf and up 23% from a March 2019 average of 2,831 mcf per day.

BlueCrest’s Hansen field averaged 4,154 mcf per day in March, down 9%, 412 mcf per day, from a February average of 4,566 mcf and down 50.5% from a March 2019 average of 8,385 mcf per day.

Hilcorp’s Ivan River averaged 362 mcf per day in March, down 3.8%, 14 mcf per day, from a February average of 376 mcf and down 7.1% from a March 2019 average of 390 mcf per day.

AIX’s Kenai Loop field averaged 5,241 mcf per day in March, up 0.4%, 21 mcf per day, from a February average of 5,219 mcf but down 3.9% from a March 2019 average of 5,454 mcf per day.

Hilcorp’s Lewis River averaged 1,090 mcf per day in March, down 2.1%, 23 mcf per day, from a February average of 1,113 mcf, but up 380.3% from a March 2019 average of 227 mcf per day.

Hilcorp’s Middle Ground Shoal averaged 265 mcf per day in March, down 4.7%, 13 mcf per day, from a February average of 278 mcf but up 10.6% from a March 2019 average of 240 mcf per day.

Amaroq’s Nicolai Creek averaged 282 mcf per day in March, up 6.2%, 16 mcf per day, from a February average of 265 mcf but down 34.9% from a March 2019 average of 432 mcf per day.

Hilcorp’s Nikolaevsk averaged 421 mcf per day in March, down 2.9%, 12 mcf per day, from a February average of 434 mcf but up 2.2% from a March 2019 average of 412 mcf per day.

North Fork, operated by Glacier Oil and Gas’ Cook Inlet Energy, averaged 3,625 mcf per day in March, down 2.4%, 90 mcf per day, from a February average of 3,715 mcf, but up 2.1% from a March 2019 average of 3,551 mcf per day.

Redoubt Shoal, also operated by Glacier’s CIE, averaged 268 mcf per day in March, down 1.4%, 4 mcf per day, from a February average of 271 mcf but up 12.6% from a March 2019 average of 238 mcf per day.

Hilcorp’s Trading Bay averaged 2,920 mcf per day in March, the same volume as its February production, but down 1.2% from a March 2019 average of 2,955 mcf per day.

West McArthur River, operated by Glacier’s CIE, averaged 71 mcf per day in March, up 13%, 8 mcf per day, from a February average of 63 mcf, but down 29.4% from a March 2019 average of 100 mcf per day.

Cook Inlet natural gas production peaked in the mid-1990s at more than 850,000 mcf per day.

—KRISTEN NELSON

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