wec presentation senator mcguire
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Senator Lesil McGuire presents to the World Energy Council. September 14, 2010TRANSCRIPT
The Future of Oil Development in AlaskaAlaska State Senator Lesil McGuire
A brief history of oil development in Alaska. 1889 First exploration wells are drilled at Oil Bay in the Cook Inlet.
1911 The first commercial development of oil occurs at the Katalla field.
1957 Richfield Oil Company discovers oil at the Swanson River.
1968 Prudhoe Bay, the largest oil field in North America is discovered on the North Slope of Alaska.
1970 Cook Inlet Production peaks at 225,000 barrels per day.
1971 Congress passes the Alaska Native Claims Settlement Act (ANCSA).
1973 Vice-President Agnew casts the tie breaking vote authorizing construction of the Trans-Alaska Pipeline.
1984 Mukluk, the most expensive dry hole in American history, is abandoned in the Beaufort Sea.
1988 Production from Alaska’s North Slope peaks at 2.1 million bpd.
1989 The Exxon Valdez runs aground on Bligh Reef in Prince William Sound.
2005 The 15 billionth barrel passes through the Trans-Alaska Pipeline.
2008 Federal OCS lease sale in the Chukchi sea breaks records at $2.6 billion.
Infrastructure + Workforce + Reserves = Alaska’s Advantage.
Current Production 647,000 bpd.
13,000 direct jobs.
Estimated Reserves: 30 billion barrels of
conventional crude oil (includes OCS).
20 billion barrels of heavy oil.
132 trillion cubic feet of conventional natural gas.
590 trillion cubic feet of methane hydrates.
“Active” Leases in the Federal OCS
Exploration in the OCS isn’t new.
Logistics + Permitting + Stakeholders = Alaska’s Challenges
High operating costs.
Federal moratoria.
Endangered species.
Diverse interest groups.
Litigation.
Permitting delays.
A Promising Future…………….or?North Slope Oil Production Without OCS Development.
North Slope Oil Production With OCS Development.
State Policy Initiatives
Exploration and development incentives.
Production Tax credits that can be monetized immediately.
Between 20%-40% of expenditures.
Alaska Gasline Inducement Act (AGIA)
$500 million in State funds for licensed project sponsor (TransCanada & Exxon).
Northern Waters Task Force (AK Legislature)
Stakeholder engagement.
Contact Information
Senator Lesil McGuire
716 W. 4th Avenue, Suite 430
Anchorage, Alaska 99501
Phone: 907-269-0250 Fax: 907-269-0249