Governor Walker’s SOS 4 for 5 on Responsible Resource Development

Governor Walker gave great hope to Alaska’s resource development communities with the following statements in his annual address to the legislature:

  • I’m a fan of a stable fiscal foundation
  • Uncertainty is the greatest threat to economic security
  • Mining is key to Alaska’s success and responsible resource development
  • I have a plan to increase throughput

The only statement that brought Headlamp concern?

  • There is no other project that will revitalize our economy like AKLNG

The “project” that will revitalize our economy – thousands of jobs, new tax revenue, a bigger capital budget, an increase in production tax – is any oil or gas project that will increase production. Fortunately, there are several projects that are “shovel ready.”

  • ConocoPhillip’s Greater Mooses Tooth 1 and 2 could add 60,000 barrels per day with half of that coming online by late 2018.
  • ConocoPhillip’s Willow discovery could add 100,000 barrels per day in a relatively short period of time.
  • The Armstrong-Repsol Nanushuk/Pikka project could bring an additional 120,000 barrels per day online.
  • Brooks Range’s Mustang field will add 15,000 barrels per day in coming years.
  • Accumulate Energy, a subsidiary of 88 Energy, is pursuing its Icewine project, a major unconventional shale oil play, which could hold nearly half a billion barrels of oil.
  • Eni Petroleum has plans to resume drilling at Nikaitchuq in early 2017, with 7 wells targeted.
  • Hilcorp Alaska is permitting their new Moose Pad at Milne Point, to drill up to 44 wells, with peak production estimated at 10-15K barrels per day.

These are the real projects that are attainable in the short term should the state keep the right policies in place.

Don’t be sad…4 out of 5 ain’t bad…