US sees 9.3 bln barrels oil in Alaska Reserve
Date: 17-May-02
Country: USA
Author: Chris Baltimore
The actual amount of technically recoverable oil could be as high as 13.2 billion barrels, although the likelihood of ever producing that much was slim, the agency said. The 9.3 billion barrel estimate is based on statistical 50 percent chance of recovery.
A 1980 government study estimated the reserve held an average of about 2.1 billion barrels.
The reserve's eastern border is about 100 miles west of the Arctic National Wildlife Refuge (ANWR), a pristine wilderness which the Bush administration has sought to open to oil drilling. ANWR's reserves have been estimated at up to 16 billion barrels.
The U.S. Geological Survey also noted that at market prices below $35 per barrel, there would be more recoverable crude oil in ANWR than in the Alaska National Petroleum Reserve. At market prices over $35 per barrel, the two areas would have roughly equal amounts of recoverable oil, it said.
The Democratic-led Senate recently rejected a proposal to drill in ANWR, but the plan could be revived by Republicans in a joint House-Senate bargaining session set to begin in coming weeks.
The U.S. Geological Survey also estimated that recoverable natural gas reserves in the Alaska National Petroleum Reserve at between 39.1 trillion cubic feet (tcf) and 83.2 tcf, with an average of 59.7 tcf. It marked the first time the federal government has estimated how much natural gas is in the reserve.
However, the recovery of natural gas hinges on a yet-to-be built pipeline, which would carry supplies to Lower 48 state markets, the agency said.
The Alaska National Petroleum Reserve was established in 1923, but there has been limited exploration there.
The discovery of the 430 million barrel Alpine oil field, announced in 1995 by Arco, sparked industry interest in the reserve. The Alpine property is on state-controlled land adjacent to the petroleum reserve's eastern border.
About 4 million acres (1.6 million hectares) in the reserve's northeast corner was offered for leasing in 1999. The sale drew $104.6 million in bids, largely from Arco Alaska Inc. and BP.
Phillips Petroleum acquired Arco's Alaska assets and has been the most active in exploring the reserve in recent years.
The U.S. Bureau of Land Management plans to hold an oil and gas lease sale on June 3 for about 3 million acres (1.2 million hectares) of land in the reserve.
The 23 million acre petroleum reserve is located west of the Prudhoe Bay and Kuparuk oil field complexes.
