Heavy oil to help sustain Alaska production
Heavy oil will play an important role in sustaining Alaska North Slope production through 2008, according to an
Alaska state forecast released. Viscous oil is projected to make up nearly 12 %, or 119,000 bpd, of ANS while helping
to keep current ANS production levels from dropping below 1 mm bpd.
"It's real good news that we anticipate the rate will stay above 1 mm bpd over the next five or six years," said Bill
Van Dyke, petroleum manager for Alaska's oil and gas division. State forecasters expect heavy oil production from
Schrader Bluff to increase to 55,000 bpd from current levels of about 12,000 bpd. West Sak should increase to 51,000
bpd from a current 7,000 bpd, while the Polaris satellite field will add another 13,000 bpd.
BP Exploration (Alaska) said it plans to invest $ 175 mm on heavy oil development at its Schrader Bluff field. "We
have made significant progress toward making viscous oil production on the slope competitive," a spokesman for the
company said. Phillips Alaska said it will spend $ 40 mm on West Sak this year alone, which will include testing of
new heavy oil recovery technologies and at least one additional multi-lateral well.
"You can expect to see further investment at West Sak," a company spokeswoman said.
BP and Phillips have developed horizontal and multi-lateral wells that permit the capture of more oil and have developed technologies to better control troublesome formation sand.
