Monday, March 20, 2017

Alaska's New Treasure Trove - massive oil reserves

Alaska residents get a percentage of each year's oil revenue in the form of an annual check from the state government,so those checks could be noticeably larger in the years ahead,in light of recent energy discoveries in the 50th state.For one,the Caelus field,off Alaska's North coast,was declared in October 2016 by Caelus Energy Alaska to have the potential of providing 200,000 bbl a day for the Trans-Alaska Pipeline,which has seen a 37% decrease over the past decade.What is more,it is a light sweet crude reserve.This type of oil is in high demand because it is easier to pump and extract-and it makes up only 30% of the world's reserves.*
Oil and gas comprise 90% of Alaska's revenue,but the Trans-Alaska Pipeline is three-quarters empty,said Alaska Governor Bill Walker.This should be remedied by such finds as that by Spanish firm Repsol and its partner Armstrong Energy.Their onshore Nanushuk play could hold up to 3.76 billon bbl,according to an independent assessment.Repsol gives a conservative 1.2 billion barrel estimate for the entire complex.Geologists say it is in a long-overlooked,shallow formation.Senator Dan Sullivan,R-Alaska,said:
This announcement,with the state working together as a partner with Congress;the new administration;and the private sector,could usher in a new renaissance of economic growth and job creation in Alaska.*
Indeed,ConocoPhillips has also made a discovery in the same National Petroleum Reserve-Alaska that could yield up to 100,000 bbl a day.*
ConocoPhillips Inc (COP),Repsol SA (ADR):(REPYY)

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