Every Last Drop: Developing methods to extend an oil field's life.

• Author: Strieker, Julie
• Position: OIL & GAS

On June 20, 1977, first oil from the massive Prudhoe Bay oil field flowed into TAPS. It was the first trickle of the 24 billion barrels of conventional oil estimated to be In the oil field, of which 9.6 billion barrels was thought to be technically recoverable.

Four decades later, more than 12 billion barrels of oil have been produced at Prudhoe Bay alone, with billions more produced from satellite fields and other areas on the North Slope. That increase in technically recoverable oil (from 40 to 60 percent) Is due to several factors, including Improved drilling technology, better mapping, and the use of production enhancements such as water and natural gas injection.

That still leaves a lot of oil In the ground at Prudhoe Bay, not to mention other areas of the North Slope--some of It In deposits of heavy, viscous oil and shale oil that are more difficult to extract and process, according to the Resource Development Council (RDC). But oil companies on the North Slope are actively looking for and implementing new ways to bring that oil to market.

Scott Montgomery, a professor at The Henry M. Jackson School of International Studies at the University of Washington, writes: "Oil companies have ways of being nimble In hard times, such as selling assets, adjusting production levels, and seeking mergers. Now rapid Innovations In drilling, seismic Imaging, and data processing allow well-run companies to cut costs in multiple areas."

New Dogs, Old Tricks

Texas-based Hilcorp is the newest player in Prudhoe Bay after completing its $5.6 billion acquisition of BP Exploration's Alaska assets on July 1, 2020. Hilcorp Alaska splits Prudhoe Bay ownership three ways with ExxonMobil and ConocoPhillips.

One of the questions raised when Hilcorp's bid for BP Exploration's assets became public was whether the privately-owned company would be able to increase production in the aging oil field. So far. its track record in Alaska has proven promising.

Hilcorp has had operations in Alaska since 2011, when it took over the Cook Inlet natural gas and oil operations from Chevron and later Marathon Oil. The company is known for its lean and efficient operations model, which quickly became apparent in Cook Inlet.

Instead of looking for new sources of natural gas, Hilcorp reworked the decades-old offshore oil platforms, focusing on boosting the supply of natural gas that powers much of Southcentral Alaska's infrastructure.

In 2018, Hilcorp undertook a $90 million upgrade...