Alaska-based oil and gas analysts noted the administration did not go out of its way to target Arctic leasing and development as some expected, which could be viewed as a victory of sorts for the industry in the state.
A Hilcorp official said the company has “implemented procedures in order to prevent this from happening in the future.”
When House Democrats passed the $1.75 trillion Build Back Better Act, they set the stage for what is shaping up to be a mirror image of the political melodrama centered around drilling in ANWR that played out in late 2017.
Hilcorp Alaska has arrested a downward trend in oil production at Prudhoe Bay in the year-plus the company has run the North Slope field. According to company leaders, it isn’t the result of anything particularly big or drastic the company has done.
The move is aimed at global energy markets, but also at voters who are coping with rising prices ahead of holiday travel.
The Environmental Protection Agency announced Wednesday it is extending through May a timeline to decide how or whether to proceed with proposed restrictions on mining in Alaska’s Bristol Bay region.
Industry insiders believe recent low-key lease sales are largely due to a lack of prime acreage available following several years of high activity.
The Alaska Industrial Development and Export Authority argues in the lawsuit that the Biden administration has violated federal law, including the 2017 law that opened the door for drilling in the Arctic National Wildlife Refuge.
Renewable IPP already owns three projects—one in Willow, one in Houston and one in Anchorage. Renewable IPP’s CEO said the Willow project is the largest so far, but the Kenai Peninsula project will be significantly larger.
The deal calls for Hilcorp to take over as operator of the North Slope field early next year, presuming state regulatory approvals are secured.
It may not be until next year that the industry begins to boost hiring significantly, economists said.
Shell’s attempts to finalize commercial arrangements with other industry players continue to be hampered by the pandemic, according to filings with the state.
ConocoPhillips can still pursue developing the Willow oil project, but it will likely require an additional federal environmental review before it can move ahead.
The deal avoids the need for legislative approval.
In less than a year, two multibillion-dollar oil projects have gone from promising to highly uncertain amid financing and regulatory setbacks.
An initial assessment of the management plan shows that it conflicts with President Joe Biden’s executive order in January to reduce carbon emissions, according to a legal memorandum Interior filed Tuesday.
Hollis French wanted the Alaska Oil and Gas Conservation Commission to address the question of the agency’s enforcement role over the leak, and the agency refused, saying it didn’t have jurisdiction.
A junior Australian outfit that has been exploring the North Slope for years has likely hit big in a formation that has quickly become a go-to target.
The project in the National Petroleum Reserve-Alaska had been approved by the Trump administration and could produce more than 160,000 barrels per day.
Leaders of the state development bank approved a plan Aug. 12 to offload the foreclosed North Slope oil project where it has to date invested more than $70 million.