Here’s some not-so-cheery news to for your Saturday. Brent crude futures was trading at $70.15 a barrel on Friday and West Texas Intermediate crude oil dropped to $66.15.
That said, reader Jon K. says there’s reasons to be optimistic in Alaska. He culls from Friday’s Petroleum News to make his case: (Links added by me.)
Liberty again: Having purchased a large slice of BP’s interests in four BP northern Alaska oil fields, Hilcorp Alaska is going to file a new proposed plan of the development for the Liberty field, offshore in the Beaufort Sea. Hilcorp has acquired a 50 percent interest in Liberty and is now the field operator. ….Essentially, on the North Slope Hilcorp will adopt the same strategy as it has been employing in the Cook Inlet basin, where as a consequence of a multitude of small development and upgrade projects the company has doubled oil production from the aging fields that the company acquired from Chevron and Marathon.
Another rig for Kuparuk: ConocoPhillips Alaska has contracted with Nabors Alaska Drilling for a new coiled tubing drilling rig, the company’s president, Trond-Erik Johansen, told the Resource Development Council’s annual conference in Anchorage Nov.
Increased activity. Since 2012 BP has increased its North Slope activity level by more than 50 percent – the company is on track to add an additional drilling rig operation to its operations in 2015, with a further rig due to go into action in 2016, Weiss said.
Repsol spending $240 million this year: Repsol E&P USA Inc. plans to spend $240 million on its exploration work this winter.
Caelus planning to spend $500M in 2015 on Slope exploration, development.
Armstrong left ‘a lot of money on the table in recent lease sales, but worth it to advance development.
Oil industry employment hits records. Employment in the Alaska oil industry looks set to hit a record level again this year, Neal Fried, an economist with the Alaska Department of Labor, told the Resource Development Council’s annual conference on Nov. 19. Apart from 2010, each year since 2007 has marked a new record for employment levels in the industry. The employment level in the North Slope industrial complex is particularly impressive, with an increase of about 1,200 in personnel compared with last year.