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July 2004

Vol. 9, No. 28 Week of July 11, 2004

June North Slope output down 3 percent from May

Endicott, Prudhoe Bay lead decline; summer temperatures on slope affect production because compressors less effective at warmer temperatures

Kristen Nelson

Petroleum News Editor-in-Chief

Alaska North Slope crude oil production averaged 934,443 barrels per day in June, down 3.34 percent from a May average of 966,869 bpd. The Alaska Department of Revenue noted that this June’s average temperature of 44.31 degrees Fahrenheit at pump station No. 1 compares with a three-year average for June of 40.3 degrees F. Higher temperatures in the summer months result in reduced production, as compressors work less efficiently in warmer weather than they do in winter.

Endicott down 9.6 percent

The steepest production drop in June was at the BP-operated offshore Endicott field, the most easterly of the slope’s producing fields, with production averaging 24,678 bpd in June, down 9.58 percent from a May average of 27,293 bpd.

BP Exploration (Alaska) spokesman Daren Beaudo told Petroleum News July 7 that “Endicott is gas compression limited.” The field produces a lot of gas and water in relation to oil, he said, and the “high gas and water to oil production ratio … was exacerbated by some miscible injectant compressor turbine problems.”

The result, he said, was to “further restrict the gas-handling capabilities of the field,” reducing oil production. The higher temperatures in June also “add to the compression constraints as well,” he said.

Production from the BP-operated Prudhoe Bay field (which includes Midnight Sun, Aurora, Polaris, Borealis and Orion) averaged 431,444 bpd in June, down 6.53 percent from a May average of 461,562 bpd, a smaller percentage drop than Endicott, but a much larger per-barrel drop.

Beaudo said temperature and natural field decline were both factors at Prudhoe, with temperatures “up 15 degrees on average from May to June.” Comparing June to May at Prudhoe, he said, “May was relatively light from a planned maintenance standpoint” compared to June. “June production was right on target with our expectations,” Beaudo said.

Production from the BP-operated Lisburne field (including Point McIntyre and Niakuk) averaged 52,146 bpd in June, down 2.66 percent from a May average of 53,571 bpd.

Northstar, Alpine also see reduced production

The Department of Revenue noted equipment-related production slowdowns at two fields.

There was a gas compressor repair at BP’s offshore Northstar field beginning June 7, and estimated to take seven to 10 days, the department said. Production at the field did drop into the 50,000-bpd range twice during that time, but field production still averaged 72,875 bpd, down only 3.35 percent from the field’s May average of 75,424 bpd.

Revenue also noted what it called “a myriad of problems” at the ConocoPhillips Alaska-operated “Alpine field June 6-8 that were quickly repaired.” Alpine, the most westerly of the North Slope’s producing fields, averaged 102,864 bpd in June, down 3.45 percent from the field’s May average of 106,543 bpd, with production dipping below the 100,000-bpd mark June 5-7 and again at the end of the month, June 28-29. Substantial work is under way at Alpine, and the field will be offline for about four weeks beginning in mid-July for upgrade work and major maintenance (see story in June 27 issue).

Kuparuk, Milne, have increased production

Production from the ConocoPhillips Alaska-operated Kuparuk River field (which includes West Sak, Tabasco, Tarn, Meltwater and Palm production) averaged 197,275 bpd in June, up 2.76 percent from a May average of 191,984 bpd. The other North Slope field with increased production in June was the BP-operated Milne Point field, which averaged 53,161 bpd in June, up 5.29 percent from a June average of 50,492 bpd.

Cook Inlet production averaged 24,411 bpd in June, down 2.86 percent from a May average of 25,130 bpd.






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