Output of Oil has Doubled

JUNEAU (AP) — Production of crude oil in Alaska, which doubled in volume in 1967 over the previous year, doubled again during the past year, the Alaska office of Mineral Resources reported today.

Value of all mineral production in the state totaled $212.1 million, compared with $134.1 million in 1967, the report said.

The preliminary report for 1968 was released by the Mineral Resources Office of the Bureau of Mines, U.S. Department of the Interior, under a cooperative agreement, with the division of mines and minerals of the state Department of Natural Resources.

Crude oil and natural gas from the Kenai Peninsula and offshore Cook Inlet fields were again the leading mineral commodities, accounting for $181 million, or 86 percent greater than that of 1967.

The spectacular increase in oil production, almost entirely from new offshore Cook Inlet production, had been overshadowed during the year by news from the big oil strike on the North Slope.

The North Slope field did not account for any commercial production, however.

Oil production from the established Kenai Peninsula fields at Soldotna Creek and Swanson River increased by less than 3 percent. In offshore activities, output from the unitized McArthur River field reached almost 22 million barrels, or 33 percent of total Alaska production.

The Granite Point Field, with 13.7 million barrels, was the second ranking producer. The balance of the production was from Middle Ground Shoal, 11.6 million barrels; South Middle Ground Shoal, 3.18 million and Trading Bay, 3.21 million barrels.

The value of sand and gravel decreased from $26.2 million in 1967 to $20.7 million, on 17.6 million tons, down from 22.4 million, the report said.

Coal production and value was “appreciably less” than last year æ although 1968 figures have not been released by the industry æ reflecting the changeover of military installations to natural gas for fuel.

The Evan Jones mine north of Palmer in the Matanuska field was closed in mid-March after losing a reported 95 percent of its market with the conversion of Anchorage military bases to gas.

Coal output from the Nenana (Healy River field) increased 10 percent.

Gold production for the year was valued at $814,000 æ up slightly from $803,000 in 1967 æ although production dropped from 22,948 troy ounces to 21,000.

The reduction in sand and gravel production reflected less road building activity, the report said.

Anchorage Daily Times Jan. 3, 1969