Oil Season: The industry prepares for winter drilling.

AuthorNewman, Amy

Fall is well underway, and with it signs that Alaska's oil and gas industry is busy preparing for the 2019-2020 winter drilling season. Available project details indicate a winter season that expands upon last season's successes, continued exploration in the Nanushuk Formation, and the design and implementation of new technologies to help companies better identify potential prospects and guide future exploration.

Project Timelines

"These days companies are looking really at January [as a start date] so they can ensure the ice infrastructure will be in place," says Graham Smith, permitting section chief with the Alaska Division of Oil and Gas. "The flood of permits, meetings, and planning sessions these days is happening more in the September/October timeframe, although we're starting to see some applications come in August."

Smith says that while the Division historically tikes to know what projects are in the pipeline, they encourage companies to hold off on submitting permit applications until all the details are finalized.

"These projects can go through many different iterations, and in the past we've dedicated staff time and resources to processing permit applications only to have the company come back and say, 'Plans changed, now this is what we're actually going to do,'" Smith explains. "When it comes to the permitting aspect, we ask that they come in when they're actually ready to roll."

Anchorage Economic Development Corporation President and CEO Bill Popp says the short-term outlook for drilling this winter looks promising, even though the state won't see an immediate financial benefit.

"I think we've got some things to be optimistic about in terms of increased activity, but it's going to be awhile before that impact has any impact on the state treasury," he says.

Even without official permits in the pipeline yet, Smith anticipates "several projects to be undertaken by ConocoPhillips, BP, and Hilcorp intended to maintain and upgrade North Slope facilities," as well as projects from geophysical exploration companies.

Oil Search Alaska

Oil Search's winter program includes maintenance and development projects in the Nanushuk field, part of the Pikka Unit Development Oil Search acquired in 2018, along with satellite fields within the Nanushuk and Alpine Fairways and the Horseshoe discovery. The project is located roughly seven miles northeast of Nuiqsut and fifty-two miles west of Deadhorse, according to documents filed with the...

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