Alaska's OCS: exploring the offshore cycle.

• Author: Bradner, Mike
• Position: OIL & GAS

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Alaska's oil production is declining. Can exploration in the Outer Continental Shelf bail us out? It might. But we've thought that before.

Exploration in the OCF off Alaska's Arctic shores holds the promise of large oil and gas discoveries, much larger than the modest prospects the industry sees onshore. Oil from the OCS could indeed increase the flow through the trans-Alaska oil pipeline, it's hoped, keeping that vital transportation system in business. Offshore development could also spawn a new offshore support industry for Alaska, creating thousands of jobs.

It's an enticing prospect, and not far-fetched. But for Alaskans who have lived in the state for a few years, there is something vaguely familiar about it all.

It should be familiar. We've seen OCS exploration before in the Arctic and elsewhere off Alaska's coasts, including in the Arctic, drillships, icebreakers and oil spill response barges. Almost two decades ago there were extensive environmental surveys and studies of bowhead whales, including reactions of whales to drill ships, just like studies under way today. There were also companies planning OCS wells in the Chub chi Sea--Chevron and Texaco--that had to delay planned drilling because of government restrictions, again just like today. At that time, however, the problem was State of Alaska--not federal--restrictions on drilling that had been extended to the OCS.

Then, like now, it was Royal Dutch Shell that took the lead in both the Beaufort and Chukchi seas, although other companies, including Unocal, Sohio, Amoco and Arco Alaska, were active. There was activity across the Beaufort Sea. Chevron had partnered with

Conoco on one prospect in the eastern Beaufort Sea and another in the western Beaufort. The company had asked exceptions to state prohibitions on drilling during the spring and fall whaling seasons, and also for certain changes to strict state oil spill requirements.

Arco was active in the Arctic OCS waters too, planning drilling for itself and Shell, Amoco and Unocal on the Fireweed prospect in the western Beaufort, off the National Petroleum Reserve-Alaska, and in the eastern Beaufort where the company drilled its Stinson well near Camden Bay. Amoco was also active, with its Gallahad well in the eastern Beaufort.

Arctic OCS History

There is a lot of the history in the Arctic OCS that is almost eerie in its similarity to the present: OCS Lease Sale 71 in the Beaufort Sea in 1982 netted more than $2 billion in bids by industry, with about half of this by one company, Sohio. Most of the money was spent to acquire rights on a large prospect over which there was great confidence.

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