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Page added on October 27, 2017

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More than half of Alaska’s oil reserve is up for bids

Production

The U.S. Bureau of Land Management will be accepting oil exploration bids for more than half of the land on a Northern Alaska petroleum reserve that’s the size of Indiana.

The bureau’s announcement on Wednesday is the largest lease sale to be offered in the National Petroleum Reserve-Alaska, according to Alaska’s Energy Desk.

A total of 900 tracts are up for bid, compared with the 145 tracts offered last year.

The land up for lease was guided by industry interest in the past. But earlier this year, Interior Secretary Ryan Zinke directed the bureau to maximize the amount of reserve land available for lease.

The reserve saw a spike in interest from the oil industry last year, which was spurred by a series of oil discoveries around its northeast part.

Alaska’s congressional delegation praised the announcement, while environmental groups said the reserve should not be “plundered without restraint.”

“The (reserve) was always intended for development, not to be locked away in perpetuity like the previous administration attempted,” said Rep. Don Young, a Republican.

President Barack Obama’s administration decided to make portions of the reserve off-limits to leasing, citing the protection of bird and caribou habitat. Donald Trump’s administration is reviewing those marked areas.

“We need a thoughtful, careful approach that emphasizes responsible development and recognizes that some places are simply too special to drill,” said Nicole Whittington-Evans of the Wilderness Society.

Part of the state’s oil revenues is put into a fund that gives every Alaska resident a yearly payout. This year, the fund gave a reduced payment of $1,100, half the typical amount, to each Alaskan.

The lease sale is scheduled for Dec. 6.

CBS



16 Comments on "More than half of Alaska’s oil reserve is up for bids"

  1. Sissyfuss on Fri, 27th Oct 2017 9:33 am 

    The anti-environment Trump adminstration have only the impotent environmental groups standing in their way, tragically. A repeat of history when the Spaniards saw the potential riches of the land occupied by the indigenous people who had no answer to horses, muskets, and armor. The modern invaders come equipped with laws, courts, and money. No contest.

  2. Alice Friedemann on Fri, 27th Oct 2017 12:09 pm 

    Sissyfuss, no, the environmental groups aren’t the problem. It’s permafrost on the land, and icebergs in the sea where it’s impossible to drill with today’s technology, and probably tomorrow’s too.

  3. rockman on Fri, 27th Oct 2017 1:28 pm 

    First, it isn’t half the “reserves” are up for lease but half the acreage. How reserves are under those leases will take a lot of drilling to determine.

    “…and icebergs in the sea where it’s impossible to drill with today’s technology, and probably tomorrow’s too.” Actually it was doable with decades old technology. Such as the world’s largest platform set to develop the Hibernia oil field off the east coast of Canada. The Hibernia platform is designed to resist the impact of sea ice and icebergs. It can withstand the impact of a one-million tonne iceberg with no damage. It can withstand contact with a six million tonne iceberg, estimated to be the largest that can drift into that water depth and only expected once in 10,000 years, with repairable damage.”

    Always pays to check with wiki before one starts writing checks with their mouth their ass can’t pay. LOL.

  4. Paul on Fri, 27th Oct 2017 8:20 pm 

    @Rockboi

    Why isn’t there a platform like Hibernia already drilling away in the Arctic Ocean? It’s not because of environmental groups or the policies of psuedo-liberal politicians. Money and power control everything. Could it be because the Arctic Ocean is a DIFFERENT beast than the North Atlantic? Could it be that the recoverable reserves aren’t worth the effort? According to Wiki, Shell and other oil companies have attempted exploration and recovery and failed. Only the Russians with the Prirazlomnaya Platform seem to be pumping something viable from the Arctic Ocean. Maybe you need to close the checkbook and pay cash.

  5. Boat on Fri, 27th Oct 2017 11:41 pm 

    Paul,

    At $45-50 pb chasing oil in the North makes no sense for a company. For a country, no problem. If oil jumps to $70-$80 You will see rigs from companies again.

  6. Boat on Fri, 27th Oct 2017 11:47 pm 

    Remember when the USA imported 12 mbpd? The last 4 months have averaged less than 3 mbpd.

    https://www.eia.gov/dnav/pet/pet_move_wkly_dc_NUS-Z00_mbblpd_w.htm

  7. rockman on Sat, 28th Oct 2017 1:05 am 

    Paul – “Why isn’t there a platform like Hibernia already drilling away in the Arctic Ocean?”. Understand that I’m not trying to talk down to you. But do you understand that essentially no offshore exploration wells anywhere in the world are drilled from platforms? The Hibernia Field discovery well was drilled by mobile offshore drilling rig. Only when a sufficient amount of reserves are proven can a production platform be set and development wells drilled. I don’t have a number but imagine how expensive the Hibernia platform must have been: not only is it the largest offshore platform in the world but also designed to handle a huge iceberg hit. OTOH it’s expected to ultimately recover 700 million bbls of oil.

    And I might be based wrong but there’s no iceberg threat in the US portion of the Arctic…just sea ice. I think the iceberg source for the Hibernia area is calving from Greenland glaciers.

    Here’s a picture

    https://www.energy-pedia.com/news/canada/hibernia-oil-field-reserves-increased-by-12-percent

  8. rockman on Sat, 28th Oct 2017 1:16 am 

    “The last 4 months have averaged less than 3 mbpd”

    According to the EIA during the last 4 months of its record the US has imported between 7.8 and 8.4 million bopd.

    https://www.eia.gov/dnav/pet/pet_move_impcus_a2_nus_epc0_im0_mbblpd_m.htm

    Boat – Did you get cross eyed? LOL. Even your link shows more then twice your claim.

  9. Anonymous on Sat, 28th Oct 2017 4:43 am 

    Hibernia had a polar bear visit.

    http://www.cbc.ca/news/canada/newfoundland-labrador/polar-bear-pays-visit-to-hibernia-oil-platform-1.3005966

    P.s. The bigger issue than the ice engineering is the Newfie unions. Just look at the cost overruns on the Hebron project.

  10. Anonymous on Sat, 28th Oct 2017 4:56 am 

    Rock:

    He is referring to net imports. It’s like 8 minus 2 (!) for a net of 6 for C&C.

    Then there are net exports of products as well, which is how he gets down to total of 3 for the net imports of products and crude. I think including that makes sense (if we import crude and refine it and export gasoline, we are really not consuming that oil, just processing it and sending it back.) Some of the product exports are propane, which is not really a crude product, but that’s arguable.

    There’s also some week to week variation so maybe 4 is more fair than 3.

    But net, net, if you include the net product exports, it is pretty impressive how things have changed. Back to where we were in the early 80s (and better than late 70s)

    https://www.eia.gov/dnav/pet/hist_chart/MTTNTUS2M.jpg

    P.s. It’s even more impressive if you think of Canada as like our brother and not overseas imports.

    https://qph.ec.quoracdn.net/main-qimg-9af7a5694d9a49f865431fe2639aac25

  11. Davy on Sat, 28th Oct 2017 5:36 am 

    Great post Nony and one the anti-Americans will loath

  12. deadlykillerbeaz on Sat, 28th Oct 2017 6:14 am 

    The Alaska Pipeline crosses the Yukon River. The Yukon River is not a dry creek in the middle of Wyoming by any means. Takes some work to make the crossing. It’s there, it is not a hoax, a fake photo with the fake story to boot, nope, it exists.

    Number, it takes oil to get stuff done like that.

    Demand destruction reduces demand. Affordability is the key word.

    The boomer geezers don’t want to go anywhere, they’re satisfied fogging a mirror. Reduces demand. When the car moves once every three or four days, it makes a huge difference. A trip to the golf course is outside your condo door. A world of fun a short walk away.

    The millennials can’t afford much in their formative years, getting edumacated, finding employment, living expenses take a toll. Can’t afford a car, other transportation options are available in urban areas, solves a problem. Demand is reduced even more. Wonders will never cease!

    Own a good bicycle, really no need for a car. Maintenance, insurance, payments are a financial burden. All chucked out the window when you can’t afford any of it. You’re fine without all!of that. Takes a toll on demand.

    Besides, the number of cars with one driver is obscene. It should be outlawed. Another outrage, but who cares? F that, I’m riding a bike, taking the bus, if it is too far, I’m gonna fly. It’s a pain in the ass, but I am 10,000 miles away and I want to fish for that halibut. You can bet that flying is thrilling, 550 mph is beyond cool, so that’s what will work the best.

    It is time to ship icebergs from Antarctica to The Persian gulf to retrieve the fresh water humans have been evaporating into the atmosphere pumping it from aquifers for the past eighty years or so and it js all in the form of snow and ice on top of Antarctica. An Anthropogenic glacier building project is the result. The ice sheet on Antarctica is growing! It must be stopped! Get those icebergs where they belong, Saudi Arabia is the place. Thirst never quenches.

    All that stuff takes oil, less for cars and more for ships will be better.

    At this point in time, electric vehicles are the answer for megalopolis regions, maybe with a small ice engine to get you home if the battery dies suddenly.

    Gotta eat means you have to work. Have to have a means of transportation. If you want your job at the coal-fired power plant, you gotta get there somehow and 3/4 ton GMC pick-up truck is a a good choice. Then over to the wind park to do some maintenance there. The utility that owns the coal-fired power plant also owns the wind park, carbon offsets are profitable. Trade that CO2 tonnage for some more money, you know, hey.

    Again, it all takes oil.

    Saturday, so it is drinking day for sure.

  13. rockman on Sat, 28th Oct 2017 5:00 pm 

    Anon – I suspected as much but thought he needed to be smacked around a bit for his poor wording. LOL. I’ve made the point many times: folks get excited about US oil exports without understanding how much oil we export in the form of refinery products. IOW US oil consumers are not nearly as dependent upon oil imports as many portray. In reality US refining companies are much more dependent on imports the the consumers.

    Which also means the global product consumers are more dependent on US oil imports then many appreciate. Especially the largest importer…Mexico. Combine that with our NG exports to Mexico and President Trump could use that dependency as a very big stick. He’s already threatened to screws with NAFTA. Granted putting such an embargo on Mexico to force it to pay for “the Wall” would also inflict a lot of pain on our petroleum industry. But so what, almost everyone hates us already, right? LOL.

  14. Davy on Sat, 28th Oct 2017 6:29 pm 

    good point Rock, and one the anti-Americans loath…lol…I just said that this morning to Nony.

  15. makati1 on Sat, 28th Oct 2017 7:21 pm 

    Numbers say nothing about the dependency of Americans on oil to do anything/everything. It is needed just to go to the store or doctor or school or job. They live in a land where the auto has become a necessity. Where their food is produced by burning oil. Where everything has to be trucked using oil. Where higher oil costs will bring pain and suffering to millions. Yep, numbers don’t count. LMAO

  16. Boat on Sun, 29th Oct 2017 3:33 am 

    amous gets it right while the rock made assumptions and was wrong. The US dependence on oil other than Canada and Mexico is in sniffing range, same with nat gas.
    Path to oil independence. OPEC keeps the squeeze on and oil gets to $60. The US adds a few more drilling rigs and fracking crews per month. Production gains hangs over 100,000 per month for 3 years and Canada needs a new buyer.

    In late 2013 the US completed over 600 wells per month. Last month completed wells jumped to 355. It’s not like the US hasn’t done this before.
    The US also has over 3,000 more drilled but uncompleted wells over and above the 4,000 at the end of 2013. Last month despite the increasing amount of completed wells over 170 wells were added to the DUCT’s count.

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