KEEP Alaska Competitive

When the bids were opened during last month’s National Petroleum Reserve-Alaska (NPR-A), it set off a shout heard around the world. Coverage in the world’s top news outlets focused on the magnitude of the day – and what it means for the Alaska of tomorrow.

Some coverage:

Global energy leaders convened in Houston to attend CERAWeek by S&P Global, nicknamed the “Super Bowl of energy,” were talking about one thing: “a massive lease sale in the Arctic, a remarkable show of interest from global oil giants that had faded from Alaska’s frontlines and an emerging race to find deposits potentially worth billions of dollars. Industry proponents say a flood of crude from the largely undeveloped western Arctic, if companies can locate and produce it, could open a new era for the state’s industry,” wrote the Northern Journal.

A giant lease sale could launch a new era of oil on Alaska’s North Slope. Two huge companies thought to have little interest in Alaska investment, Shell and ExxonMobil, spent millions to buy new leases on the North Slope — though drilling still faces obstacles, writes States News Service.

The US Department of the Interior’s March 18 oil and gas lease sale in the National Petroleum Reserve in Alaska (NPR-A) hit records for most revenue generated at $164.7 million. The sale – the first for the reserve since 2019 —offered 625 tracts across 5.5 million acres in the 23-milion acre reserve. The NPR-A 2019 lease sale generated $11.3 million. Eleven companies submitted 430 bids on 187 tracts covering 1.33 million acres, the second most acreage sold in a single sale, Interior said in a press release.

The most active bidders included: North Slope Exploration LLC, winning 78 leases; Repsol E&P/Shell Frontier LLC with 43; ConocoPhillips Alaska Inc. with 30; and Exxon Mobil Alaska with 24. Epoch Oil & Gas LLC won 8 leases, 7 of which were for over $1 million, including 2 at $3.65 million. Repsol/Shell Frontier had the highest number of bids over $1 million, with 38, including 27 over $2 million, wrote the Oil and Gas Journal.

It was a historic day for Alaska – but the good news is the best part is yet to come.

Santos had yet to turn on its Pikka phase 1 development when it announced a major new find next door at Quokka.

The company says it successfully completed its Quokka-1 well, prompting plans for the development of “an oil project that could mirror the production of its Pikka Phase 1 operation,” Seeking Alpha reports. The company said Quokka-1 encountered a “high-quality reservoir with 143 feet of net oil pay in the Nanushuk formation, and an initial test achieved a flow rate of 2,190 bbl/day of oil.”

“Located strategically to the east of our Pikka phase 1 development, Quokka represents another high-return opportunity that strengthens our position on the North Slope and extends our development runway in Alaska for years to come,” Managing Director Kevin Gallagher said.

Santos controls a 51% operating interest in the unit with Repsol controlling the remaining 49%.

Learn more: seekingalpha.com/news/4573406-santos-makes-alaska-oil-discovery-begins-development-planning.

Photo Credit: Santos Ltd.

As Alyeska Pipeline Service Co. gets ready to celebrate the 50th year of operation for the Trans Alaska Pipeline System, the company shares some thoughts on how TAPS has transformed Alaska.

"It's hard to imagine Alaska without TAPS. For more than 50 years, the pipeline has provided jobs, revenue, growth and stability for Alaska communities, as well as opportunities for Alaskans.

"The absence of TAPS and Alaska's oil and gas industry would create gaps that no single industry, or frankly numerous industries, could ever fill. Without it, Alaska would face a far leaner economy, fewer opportunities and greater uncertainty about its future.

"Our vision is for TAPS 100 - another 50 years of operations. There's real momentum on the North Slope right now that will increase throughput for TAPS, signaling an optimistic future for our state. With healthy infrastructure and supportive policies and economic conditions, the opportunities for current and future jobs, investment and state revenues continue.

"This is such an exciting time to be a part of Alyeska and TAPS' legacy. With the 50th anniversary of TAPS operations on the horizon, it's the perfect time to celebrate Alaska's iconic pipeline and the proud people who built it and maintain it. We're also focused on our shared TAPS 100 vision and the next 50 years of TAPS operations.

"Activity on the North Slope is trending upward, signaling increased TAPS throughput and renewed investment across Alaska. That growth creates jobs, strengthens local economies and supports the contractors and businesses that are part of the broader TAPS business system.

"Technology, upgraded systems and ongoing reinvestment are improving safety, reliability and environmental performance across the line. These advancements not only extend the life of the pipeline but ensure we continue operating in a way that reflects Alaskans' expectations for safety and stewardship.

"Looking ahead, the combination of new development, modern infrastructure and a highly skilled workforce positions TAPS to remain a strong and stabilizing force for Alaska's economy.

"With continued industry activity and a commitment to long-term operations, TAPS will keep delivering opportunity in jobs, revenue and community resilience well into the next 50 years."

Hilcorp continues to grow its presence in Alaska.

The company told legislators that it has increased its employees in Alaska by 18% since 2021 to 1,750 and its contractor workforce by 41% to about 3,500 over the same period.

The company, which is one of the largest privately owned oil and natural gas producers in the United States, first came to Alaska in 2011, purchasing assets from Chevron and XTO Energy and becoming the dominant oil and gas producer in Cook Inlet.

It significantly expanded its Alaska footprint when it moved to the North Slope, becoming a dominant operator by acquiring major assets from BP ($5.6 billion, completed 2020) and Eni (2024), including the massive Prudhoe Bay field.

It also operates in Alabama, Colorado, Louisiana, New Mexico, Ohio, Pennsylvania, Texas and Wyoming.

Photo credit to Hilcorp Alaska.