May ANS production down 13% from April

Drop reflects beginning of ConocoPhillips’ 100,000 bpd cut in Alaska, end of Alyeska Pipeline proration affecting all producers

Kristen Nelson

Petroleum News

Alaska North Slope production averaged 433,840 barrels per day in May, down 13%, 64,582 bpd, from an April average of 498,422 bpd, reflecting both a proration by Alyeska Pipeline Service Co. which ended May 22, and the beginning of a ramp down of production of 100,000 bpd scheduled for June by ConocoPhillips at the Kuparuk River and Colville River units, which the company said at the end of April would begin in late May.

The Alyeska proration, which affected all North Slope producers, began April 24 with a 10% cut, increased to 15% on May 8 and was reduced to 5% by May 15. That proration ended May 22 (see story in May 31 issue of Petroleum News).

The ConocoPhillips June production cut, announced April 30, included 100,000 bpd in Alaska, with ramp down to begin in late May (see story in May 3 issue of Petroleum News).

ConocoPhillips said June 30 that it expects to begin restoring curtailed production in Alaska during July.

May’s ANS volumes included 392,557 bpd of crude oil, 90.5% of ANS production, down 12.5%, 56,292 bpd, from an April average of 448,849 bpd, and down 14.8% from a May 2019 average of 460,672 bpd. ANS May production included 41,283 bpd of natural gas liquids, 9.5% of production, down 16.7%, 8,290 bpd, from an April average of 49,573 bpd, and down 22.2% from a May 2019 average of 53,068.

Combined crude and NGL production for May, 433,840 bpd, was down 15.6% from a May 2019 average of 513,740 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.

Largest drops at largest fields

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

The second largest month-over-month drop was at the BP Exploration (Alaska)-operated Prudhoe Bay field, the Slope’s largest, which averaged 245,333 bpd in May, down 14,956 bpd, 5.8%, from a May average of 260,289 bpd, and down 9% from a May 2019 average of 269,659 bpd. Prudhoe May production included 206,982 bpd of crude, down 7,662 bpd, 3.6%, from an April average of 214,644 bpd, and down 5.8% from a May 2019 average of 219,690 bpd. Prudhoe NGL production averaged 38,351 bpd in May, down 16%, 7,294 bpd, from an April average of 45,645 bpd and down 23.3% from a May 2019 average of 49,969 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.

ConocoPhillips’ Colville River unit, where production slowed in late May as part of the company’s ramp down for reduced production in June, averaged 37,090 bpd, down 27.1%, 13,765 bpd, from an April average of 50,854 bpd, and down 28.3% from a May 2019 average of 51,759 bpd.

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

Badami suspending operations

Eni’s Oooguruk field averaged 6,331 bpd in May, down 1,230 bpd, 16.3%, from an April average of 7,562 bpd, and down 31.9% from a May 2019 average of 9,293 bpd.

The Hilcorp Alaska operated Endicott field averaged 6,574 bpd in May, down 969 bpd, 12.9%, from an April average of 7,543 bpd and down 7% from a May 2019 average of 7,071 bpd. Endicott production included 5,760 bpd of crude, down 810 bpd, 12.3%, from an April average of 6,569 bpd and down 8.5% from a May 2019 average of 6,291 bpd, and 815 bpd of NGLs, down 159 bpd, 16.4%, from an April average of 974 bpd, but up 4.5% from a May 2019 average of 779 bpd.

Northstar, also operated by Hilcorp Alaska, averaged 8,246 bpd in May, down 825 bpd, 9.1%, from an April average of 9,071 bpd, and down 22.6% from a May 2019 average of 10,655 bpd. Northstar production included 6,129 bpd of crude, up 11 bpd, 0.2%, from an April average of 6,118 bpd, but down 26.5% from a May 2019 average of 8,335 bpd, and 2,117 bpd of NGLs, down 836 bpd, 28.3%, from an April average of 2,953 bpd, and down 8.8% from a May 2019 average of 2,320 bpd.

The Hilcorp-operated Milne Point field averaged 32,435 bpd in May, down 359 bpd, 1.1%, from an April average of 32,794 bpd, but up 24.5% from a May 2019 average of 26,062 bpd.

ConocoPhillips’ Greater Mooses Tooth in the National Petroleum Reserve-Alaska averaged 4,433 bpd in May, down 266 bpd, 5.7%, from an April average of 4,699 bpd, and down 60.9% from a May 2019 average of 11,335 bpd.

Only two month-over-month increases

Eni’s Nikaitchuq averaged 18,144 bpd in May, up 407 bpd, 2.3%, from an April average of 17,737 bpd, and up 9% from a May 2019 average of 16,640 bpd.

The ExxonMobil-operated Point Thomson field averaged 9,618 bpd in May, up 340 bpd, 3.7%, from an April average of 9,278 bpd, and up 44.2% from a May 2019 average of 6,668 bpd.

Steep drop in Cook Inlet

Production from Redoubt Shoal averaged 187 bpd in May, down 88.9%, 1,489 bpd, from an April average of 1,676 bpd, and down 84.3% from a May 2019 average of 1,191 bpd. Glacier requested a suspension of production covering May 4 through April 30, 2021.

Glacier also requested a suspension for West McArthur River, that covers May 17 through April 30, 2021. The field averaged 237 bpd in May, down 36.6%, 137 bpd, from an April average of 374 bpd and down 57.1% from a May 2019 average of 553 bpd.

Hilcorp Alaska’s McArthur River field, Cook Inlet’s largest, averaged 3,611 bpd in May, down 8.1%, 317 bpd, from an April average of 3,928 bpd and down 28.4% from a May 2019 average of 4,834 bpd.

Hilcorp’s Trading Bay field averaged 1,158 bpd in May, down 226 bpd, 16.3%, from an April average of 1,383 bpd and down 21.2% from a May 2019 average of 1,469 bpd.

Hilcorp’s Beaver Creek averaged 147 bpd in May, down 16 bpd, 9.6%, from an April average of 163 bpd and down 58% from a May 2019 average of 351 bpd.

Hilcorp’s Granite Point averaged 3,096 bpd in May, down 134 bpd, 4.2%, from an April average of 3,230 bpd, but up 23.3% from a May 2019 average of 2,452 bpd.

BlueCrest’s Hansen field, the Cosmopolitan project, averaged 977 bpd in May, down 41 bpd, 4%, from an April average of 1,018 bpd and down 42.9% from a May 2019 average of 1,713 bpd.

Two Cook Inlet fields had small month-over-month increases.

Hilcorp’s Middle Ground Shoal averaged 1,266 bpd in May, up 37 bpd, 3%, from an April average of 1,229 bpd and up 632.1% from a May 2019 average of 173 bpd.

Hilcorp’s Swanson River field averaged 883 bpd in May, up 31 bpd, 3.7%, from an April average of 852 bpd, but down 15.4% from a May 2019 average of 1,044 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.

Cook Inlet gas production down 6.2%

Seven fields account for 81% of gas production in the inlet, led by Hilcorp Alaska’s Kenai field, which averaged 32,489 mcf per day in May, down 880 mcf, 2.6%, from an April average of 33,368 mcf per day, but up 3.5% from a May 2019 average of 31,398 mcf.

Hilcorp’s Ninilchik field averaged 30,207 mcf per day in May, down 12%, 4,106 mcf per day, from an April average of 34,313 mcf per day and down 28.1% from a May 2019 average of 42,031 mcf per day.

Hilcorp’s Swanson River averaged 29,516 mcf per day in May, down 8%, 2,551 mcf, from an April average of 32,067 mcf but up 4% from a May 2019 average of 28,395 mcf per day.

Hilcorp’s McArthur River field averaged 23,684 mcf per day in May, up 2,864 mcf per day, 13.8%, from an April average of 20,819 mcf and up 3% from a May 2019 average of 23,003 mcf per day.

The Hilcorp-operated Beluga River field averaged 17,692 mcf per day in May, down 511 mcf, 2.8%, from a May average of 18,204 mcf and down 33.2% from a May 2019 average of 26,486 mcf per day.

Kitchen Lights, in May operated by Furie and as of a June 30 closing by HEX Cook Inlet, averaged 13,715 mcf per day in May, down 75 mcf, 0.6%, from an April average of 13,790 mcf per day, and down 4.3% from a May 2019 average of 14,329 mcf.

Hilcorp’s North Cook Inlet field averaged 13,110 mcf per day in May, up 271 mcf per day, 2.1%, from an April average of 12,839 mcf, but down 8.4% from a May 2019 average of 14,306 mcf per day.

The 15 remaining fields account for 19% of Cook Inlet gas production.

Hilcorp’s Beaver Creek averaged 10,104 mcf per day in May, up 959 mcf per day, 10.5%, from an April average of 9,145 mcf and up 30.7% from a May 2019 average of 7,734 mcf per day.

Hilcorp’s Cannery Look averaged 5,223 mcf per day in May, up 763 mcf per day, 17.1%, from an April average of 4,460 mcf and up 47.9% from a May 2019 average of 3,531 mcf per day.

AIX’s Kenai Loop averaged 4,362 mcf per day in May, down 868 mcf per day, 16.6%, from an April average of 5,230 mcf and down 14.5% from a May 2019 average of 5,102 mcf per day.

Hilcorp’s Deep Creek averaged 3,980 mcf per day in May, down 94 mcf, 2.3%, from an April average of 4,074 mcf per day and down 14.1% from a May 2019 average of 4,633 mcf per day.

Hilcorp’s Granite Point averaged 3,566 mcf per day in May, up 42 mcf, 1.2%, from an April average of 3,524 mcf per day, and up 31.2% from a May 2019 average of 2,718 mcf.

North Fork, operated by Cook Inlet Energy, a Glacier Oil and Gas company, averaged 3,472 mcf per day in May, down 121 mcf, 3.4%, from a May average of 3,593 mcf and down 15.6% from a May 2019 average of 4,111 mcf per day.

BlueCrest’s Hansen field averaged 2,780 mcf per day in May, down 672 mcf, 19.5%, from an April average of 3,453 mcf per day, and down 65.4% from a May 2019 average of 8,030 mcf per day.

Hilcorp’s Trading Bay averaged 2,191 mcf per day in May, down 929 mcf, 29.8%, from an April average of 3,121 mcf and down 35% from a May 2019 average of 3,373 mcf per day.

Hilcorp’s Lewis River averaged 1,083 mcf per day in May, down 22 mcf, 2%, from an April average of 1,105 mcf per day but up 255.8% from a May 2019 average of 304 mcf per day.

Hilcorp’s Middle Ground Shoal averaged 434 mcf per day in May, up 77 mcf, 21.6%, from an April average of 357 mcf per day and up 931.8% from a May 2019 average of 42 mcf per day.

Hilcorp’s Ivan River averaged 322 mcf per day in May, down 24 mcf, 7.1%, from an April average of 346 mcf per day and down 29.8% from a May 2019 average of 459 mcf per day.

Amaroq’s Nicolai Creek averaged 219 mcf per day in May, down 41 mcf, 15.8%, from an April average of 260 mcf and down 46.9% from a May average of 413 mcf per day.

Hilcorp’s Nikolaevsk averaged 208 mcf per day in May, up 20 mcf, 10.8%, from an April average of 187 mcf but down 64.1% from a May 2019 average of 578 mcf per day.

Operations are being suspended at two small fields operated by Cook Inlet Energy, a Glacier Oil and Gas company.

West McArthur River averaged 50 mcf per day in May, down 8 mcf, 13.1%, from an April average of 58 mcf per day and down 55.8% from a May 2019 average of 113 mcf, while Redoubt Shoal averaged 37 mcf per day in May, down 234 mcf, 86.3%, from an April average of 271 mcf and down 86% from a May 2019 average of 265 mcf per day.

Data 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.

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

—KRISTEN NELSON