• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 2 hours Starvation, horror in Venezuela
  • 1 hour The EU Loses The Principles On Which It Was Built
  • 22 mins Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 1 hour Crude Price going to $62.50
  • 17 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 1 hour WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 11 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 22 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 22 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 22 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 1 day California Solar Mandate Based on False Facts
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 24 hours Monsanto hit by $289 Million for cancerous weedkiller
What Happens To Syrian Oil Post-Civil War?

What Happens To Syrian Oil Post-Civil War?

After years of conflict in…

Oil Falls Despite Crude Inventory Draw

Oil Falls Despite Crude Inventory Draw

Oil prices fell on Wednesday…

New Tax System Spurs BP to Invest $1 Billion in Alaska’s North Slope

BP has just announced that it intends to invest $1 billion into increasing the crude oil production along Alaska’s North Slope.

The plans include the installations of an additional two new drilling rigs in Prudhoe Bay, as well as new well work and drilling, and an upgrade to existing facilities.

BP also hopes to begin a separate $3 billion project to develop the west end of the Prudhoe Bay field, dependent on their ability to negotiate an agreement with its partners in the area, Conocophillips and Exxon Mobil. This project would follow a two to three year period of analysing the potential of the area, and could lead to as many as 110 new wells being drilled.

Janet Weiss, BP’s regional president for Alaska, explained the reasons behind the investment plans, saying that “there’s a lot more potential out there than when we brought these facilities up several decades ago, so we need some more facility capacity. It’s really about smartly using technology and the gathering centers’ capacity to fully utilize what’s up there and expand upon that.”

Related article: The Arctic is Thawing, but Hasn’t Released Trapped CO2

BP hopes that the investment will reverse Alaska’s declining levels of oil production. Prudhoe Bay still remains the largest field in the US, but output has been falling ever since 1988 when the field was producing 2.02 million barrels a day.

The recent change to the tax laws in Alaska are the main reason for the new investment decisions, according to BP. Oil production will now be taxed at a flat rate of 35%, whereas before companies were taxed at a base rate of 25% that then climbed as oil prices rose, to as much as 50%.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News