Oil patch insider: Rig shortage on North Slope? Dunleavy appoints Stevens as new chief of staff, Babcock now advisor

Kay Cashman

Petroleum News

An informal survey of oil companies active on Alaska’s North Slope asked if they thought there would be shortage of drilling rigs on the North Slope for the next two winters’ off-road exploration seasons and the consensus was no - with one caveat.

Paul Mazzolini, Hilcorp Alaska’s drilling engineering advisor, said best what was reflected in the responses from other firms’ senior managers, most of whom asked not to be identified.

“I believe there will not be a shortage of drilling rigs for the 2019-2020 and 2020-2021 winter exploration drilling seasons,” he told Petroleum News in a July 31 email. “Doyon Drilling and Nabors Alaska each have two mobile drilling rigs while Kuukpik Drilling has one rig that would be available.”

And the caveat? Secure a rig early in the process.

“Smaller Independents or any possible new operator to the Slope would need compete with COP (ConocoPhillips) and Oil Search for those rigs, which would require them to be out into the market early in the year to be able to capture a rig for the winter drilling from the established North Slope exploration drilling operators,” Mazzolini said.

Hilcorp built and operates the Innovation Rig, he said, “which will work very well for winter exploration drilling.” At this time Hilcorp has no plans for exploration drilling in the 2019-20 winter season, Mazzolini said.

Another operator said Parker Drilling was “gearing up” to meet North Slope demand for rigs.

A mid-size independent executive said he also didn’t foresee a North Slope rig shortage, noting “rigs will make their way there - companies are planning ahead.”

An executive from a very active North Slope operator heard about the survey and shared his thought outside the usual channels: “We all learned our lesson a few years ago when oil prices rocketed and we’re planning ahead now, reserving rigs as soon as possible or bringing them up from Outside.”

- KAY CASHMAN

Dunleavy appoints Stevens new chief of staff

“It’s been a privilege to have Tuckerman Babcock serve as my chief of staff, and I’m grateful for his continued service and commitment to the state of Alaska,” Dunleavy said. “I’m confident that both Ben and Tuckerman’s leadership will continue to help us carry out this administration’s goals and agenda.”

Babcock, who has served as chief of staff since the Dunleavy administration took office in December, said he looks forward to serving in his new role.

“This is a move I requested of the governor; which allows me to concentrate on the areas I can best serve the governor’s agenda,” Babcock said.

The transition will be smooth, he said. “I have enjoyed working with Ben these past eight months and know he is more than qualified to serve as chief of staff.” Stevens had been working as a policy advisor to Dunleavy.

Stevens, son of the late U.S. Sen. Ted Stevens, R-Alaska, was appointed by former Gov. Tony Knowles, a Democrat, to the Alaska state Senate in August 2001, going on to serve as Alaska Senate majority leader and later Senate president.

“I’m honored that the governor would ask me to serve as his chief of staff.” said Stevens. “I appreciate the leadership Tuckerman has shown since the transition and I look forward to continue working with him as we move the governor’s agenda forward.”

The transition will begin immediately and take place over the next week, the press release said.