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O's Drilling Rules Will Slow Down Future Alaskan Oil
The federal government's new wariness about offshore drilling in the wake of the Gulf of Mexico oil spill is dimming what may be the best hope for extending the life of the Trans-Alaska Pipeline, a crucial artery supplying one-quarter of the West Coast's oil. The 800-mile pipeline carries about 670,000 barrels of oil a day13% of U.S. productionfrom Alaska's North Slope the length of the state to Port Valdez. From there it is sent by tanker to refineries in Washington and California.That is a lot less than the two million barrels a day the pipeline carried at its peak back in 1988, because of a rapidand probably permanentdecline in Alaska's onshore oil production. Volumes may fall low enough to halt operations by the middle of the next decade without an expensive modification of the pipeline to handle less oil. At a reduced flow, oil in the pipeline can freeze or form into a waxy buildup, raising the risk of interruptions and spills. Offshore oil production could help refill the pipeline just when the flow from the North Slope is projected to reach critical lows. But Alaska politicians, industry consultants and analysts question whether tight new regulations in the wake of the oil spill in the Gulf might discourage offshore drilling in the Arctic, removing that as a way to postpone the Trans-Alaska Pipeline's decline. The federal government has already ruled repeatedly that opening new onshore areas, such as the Alaska National Wildlife Refuge, to drilling would exact too great an environmental cost. That's this government. "The way I think most Alaskans feel, the federal government won't let us go to the east onshore, they won't let us go to the west onshore, the only place to go is offshore, and they won't let us do that now," said Kurtis Gibson, deputy director of the Alaska Division of Oil and Gas, part of the state's Department of Natural Resources. Royal Dutch Shell PLC was awaiting the Interior Department's final approval to drill up to five offshore wells this year when the moratorium was put into effect. The ban effectively postpones any work in Alaska until at least next summer, as sea ice prevents winter drilling. Work could be pushed back to 2012 if the government extends the ban. The oil spill has also rejuvenated a campaign by environmental groups and native coastal villagers to reduce the area of the Arctic open to oil exploration and overhaul drilling regulations. A few weeks before the Deepwater Horizon disaster, the White House had expanded its plan to sell exploration leases in Arctic waters. Let the dinosaurs return! We'll hide in our caves! Oil is bad for man-made global warming! Posted by: Bobby 2010-06-14 |
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