2011-2012 to test where oil can be produced from the shale rock. If it can, the question of if it can be economically produced will depend on whether low-cost drilling, well completions and infrastructure can be done. These are critical questions because the North Slope is notorious for being a high-cost environment, and the shale rock production will require large numbers of wells and substantial surface infrastructure such as pads, roads and utilities. Great Bear’s progress in testing its concept will be watched closely by many companies. For example Repsol, the major Spanish company, has recently acquired a large North Slope onshore lease position in partnership with Armstrong Oil and Gas, a Denver independent company. Many of Repsol’s new leases are west of the Great Bear leases and it is believed the company is interested in the potential of a shale oil resource.
NATIONAL PETROLEUM RESERVE-ALASKA The National Petroleum ReserveAlaska has seen sporadic exploration since the post-World War II period. The U.S. Navy carried out early exploration, the result being discovery of a small oil field at Umiat, on the southwestern boundary of the reserve, and a gas field at Barrow. Numerous other oil shows were found in wells, but nothing substantial. The Umiat and Barrow discoveries were not large enough to commercially develop. An independent company, Renaissance Umiat LLC, is now engaged in possible development of the small Umiat field discovered more than 50 years ago. The State is planning a road to this area from the existing Dalton Highway and the trans-Alaska oil pipeline corridor. The road would also be used to support a small pipeline carrying oil from Umiat to the oil pipeline. Meanwhile, gas wells at Barrow were drilled years ago to supply gas to government installations and ultimately the local Inupiat village. The North Slope Borough, the regional municipality, now owns the Barrow gas fields and has sponsored exploration that located additional reserves.
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www.akbizmag.com • Alaska Business Monthly • May 2011