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ConocoPhillips will develop new field, adding 20,000 barrels of oil daily in Alaska

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ConocoPhillips will develop new field, adding 20,000 barrels of oil daily in Alaska


ConocoPhillips will develop the Nuna field, a project that will add up to 20,000 barrels of oil to Alaska’s daily production, the company announced this month as the state debates higher oil industry taxes.

The oil giant acquired the relatively small field in 2019 from Caelus, a company from Dallas that still owns the potentially giant but remote offshore oil prospect in Smith Bay, off Alaska’s North Slope.

ConocoPhillips’ announcement comes as state lawmakers discuss the possibility of higher taxes on the industry as a way to help fill the Alaska’s structural deficit. Senate Bill 114, introduced this year to raise taxes on producers, could advance during the legislative session next year. Alaska’s oil and gas trade association launched an ad campaign against the five-page bill.

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ConocoPhillips is the state’s top oil producer, producing about 175,000 barrels of crude oil daily. Oil companies produce close to 500,000 barrels of oil daily in Alaska.

At Nuna, ConocoPhillips will rely on its existing infrastructure at the Kuparuk River Unit for production, the Houston-based oil company said. Caelus had already built the gravel road and drilling pad for the project.

Drilling at Nuna is set to begin late next year, followed soon after by oil production, the company said. Nearly 30 development wells are planned.

Construction will start this year and continue next year with pipeline installation and other work on the pad, the company said.

“The additional drilling opportunities we’ve identified at Nuna are a positive development that should increase oil production at Kuparuk,” said Erec Isaacson, president of ConocoPhillips Alaska.

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Isaacson said the company approved the project because of stability in the state’s tax system.

Compared to other broad geographic areas where it operates, ConocoPhillips earns more in Alaska for every barrel of oil equivalent, a common unit of energy that companies use when reporting oil and natural gas production, according to Legislative Research Services, which provides nonpartisan research for Alaska lawmakers.

The company has previously said those adjusted net earnings are higher in Alaska primarily because its production in the state is almost entirely oil. In other areas, the company produces a higher proportion of lower-price natural gas or natural gas liquids.

ConocoPhillips reported earning $2.4 billion in Alaska last year. It reported spending $1.1 billion on capital projects in Alaska last year, a level of investment the company plans to continue, its statement said.

A ConocoPhillips spokeswoman said in a statement Tuesday that the company supports nearly 1,000 direct jobs and 8,900 contractor jobs in Alaska. The company paid $3 billion in taxes and royalties last year, including $2.3 billion to the state and $711 million to the federal government, the statement said.

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State Sen. Bill Wielechowski, the sponsor of Senate Bill 114 who sought the report from Legislative Research Services, said the oil industry in Alaska has not lived up to its promised investments when Senate Bill 21 was passed and implemented about a decade ago.

Jobs have been cut in half, and investment and state revenue have plummeted.

“Alaska is an extremely profitable place to do business,” said Wielechowski, an Anchorage Democrat.

ConocoPhillips also owns the giant Willow oil field in northern Alaska, approved by the Biden administration this year. Conservation groups have sued to stop the project, asserting that the federal government violated multiple laws when it approved the project and did not fully account for its environmental impacts.

ConocoPhillips has said construction there could start next year, depending on the outcome of the case. Oil production could begin there in 2029, eventually reaching up to 180,000 barrels daily.

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Alaska

Western Alaska storm and southerly flow drives warmth back into the state

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Western Alaska storm and southerly flow drives warmth back into the state


ANCHORAGE, Alaska (KTUU) – Gusty winds and heavy snow has begun to spread into Western and Southwest Alaska, with a surge of warmer air. Temperatures in Southwest Alaska is already 10 to 35 degrees warmer than yesterday morning. This warmth will spread across the rest of the state through the weekend, with some of the most pronounced warmth along the Slope. We’ll see many areas this weekend into next week remaining well-above average.

SOUTHCENTRAL:

Temperatures are slowly warming across Southcentral, with many areas seeing cloud coverage increasing. While we could see some peeks of sunshine today, most locations will see mostly cloudy conditions. While we can’t rule out light flurries for inland locations, most of the precipitation today will occur near the coast. Snow looks to be the primary precipitation type, although later this evening a transition to rain or wintry mix will occur. This comes as temperatures quickly warm across Southcentral.

We’ll see highs today in the upper 20s and lower 30s for inland areas, while coastal regions warm into the 30s and 40s. The southerly flow aloft will remain with us for several days, pumping in the warmth and moisture. As a result, Kodiak could see over an inch of rain today, with gusty winds.

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While most of the precipitation this weekend remains near the coast, inland areas will see the best chance for wintry mix Sunday into Monday. Little to no accumulation is expected.

The key takeaways for this weekend, is snow transitioning to rain, with some gusty winds likely for parts of Southcentral this weekend.

SOUTHEAST:

Another fairly quiet day is expected across Southeast today, outside of some light snow near Yakutat. We’ll see a mix of sun and clouds with temperatures remaining on the cooler side. Parts of the Northern Panhandle may stay in the upper 20s today. The stretch of quiet weather will stay with us through the first half of Saturday, followed by an increase in precipitation and winds. This upcoming system may bring some heavy snowfall to Southeast, so be prepared for that potential this weekend. Temperatures warm into next week, back into the upper 30s and lower 40s for many areas.

INTERIOR:

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While temperatures this morning have bottomed out as low as -30 near Fort Yukon, temperatures will warm into the weekend. A wind advisory for the Alaska Range goes into effect at 9 Friday morning, where winds up to 60 mph will warm the Interior. Temperatures today for many locations will warm into the single digits, with some of the greatest warming arriving Saturday through next week. It’s likely we’ll spend most of next week with temperatures in the 20s and 30s, with the warmest locations near the Alaska Range. While we will largely stay dry, there is a chance for some light snow arriving Sunday night into Monday.

SLOPE/WESTERN ALASKA:

Temperatures will remain slightly above average for parts of the Slope today, with warming winds to build into the Slope this weekend. This comes as our area of low pressure in the Bering Sea continues to move farther north. Be prepared for gusty easterly winds along the Slope, leading to blowing snow and reduced visibility. We’ll see temperatures quickly warm well above average, with highs climbing into the 20s and 30s along the Slope into next week. While some snow is possible through the weekend, the heaviest activity will occur for the Brooks Range. We’ll see the potential for 4 to 12 inches of snowfall, with the highest amounts occurring along the southern slopes of the Brooks Range near Kobuk Valley. Winds could gusts as high as 45 mph, leading to greatly reduced visibility.

Heavy snow is impacting Western and Southwest Alaska this morning, with winds gusting up to 50 mph. Numerous winter weather alerts, as well as a coastal flood advisory is in effect. The heaviest snow will fall for the Seward Peninsula and east of Norton Sound, where up to a foot or more of snow is to be expected. The heaviest amounts will fall today, with the activity set to lighten up through Sunday. In addition to the snow, gusty winds will lead to areas of blowing snow. Visibility could be reduced down to less than half a mile at times. As southerly flow continues to pump in warmth, we’ll see a transition from snow to rain later today into Saturday for parts of Southwest Alaska.

ALEUTIANS:

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Gusty winds and heavy rain will fall through the Aleutians today, where up to .75″ of rain is possible. As the area of low pressure moves north, we’ll see a new low form just south of the Eastern Aleutians. This will lead to additional rain and winds into the weekend. Winds could gusts upwards of 50 mph through the Eastern Aleutians and through the Alaska Peninsula. With ridging to our east, more rain and winds remain with us into early next week. There is the potential that the Pribilof Islands see a return to snow Sunday, as colder air moves into the Bering Sea.

OUTLOOK AHEAD:

Well above average warmth will stay with us as we close out January. While one more short-lived cold snap is possible, we may have to wait until February before we tap into warmer conditions. Temperatures through the close of January will keep average monthly temperatures 5 to 12 degrees above average for much of the state. The overall trend still favors a wetter pattern, although with warmer weather the southern parts of the state will favor more rain or a mixed bag of precipitation.

Have a wonderful and safe holiday weekend.

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Alaska governor, ally of Trump, will keep flags at full-staff for Inauguration Day • Alaska Beacon

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Alaska governor, ally of Trump, will keep flags at full-staff for Inauguration Day • Alaska Beacon


Alaska will join several other Republican-led states by keeping flags at full-staff on Inauguration Day despite the national period of mourning following President Jimmy Carter’s death last month.

Gov. Mike Dunleavy announced his decision, which breaks prior precedent, in a statement on Thursday. It applies only to flags on state property. Flags on federal property are expected to remain at half-staff.

Flags on state property will be returned to half-staff after Inauguration Day for the remainder of the mourning period.

The governors of Indiana, Idaho, Iowa, Texas, Florida, Tennessee, Oklahoma, North Dakota, Nebraska, Montana and Alabama, among others, have announced similar moves. 

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U.S. Speaker of the House Mike Johnson, a Republican from Louisiana, said on Tuesday that flags at the U.S. Capitol would remain at full-staff on Inauguration Day. 

Their actions follow a statement from President-elect Donald Trump, who said in a Jan. 3 social media post that Democrats would be “giddy” to have flags lowered during his inauguration, adding, “Nobody wants to see this, and no American can be happy about it. Let’s see how it plays out.”

Dunleavy is seen as a friend of the incoming president and has met with him multiple times over the past year. Dunleavy and 21 other Republican governors visited Trump last week in Florida at an event that Trump described as “a love fest.”

Since 1954, flags have been lowered to half-staff during a federally prescribed 30-day mourning period following presidential deaths. In 1973, the second inauguration of President Richard Nixon took place during the mourning period that followed the death of President Harry Truman. 

Then-Gov. Bill Egan made no exceptions for Alaska, contemporary news accounts show, and no exception was made for Nixon’s inauguration in Washington, D.C., either. 

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A spokesperson for Dunleavy’s office said the new precedent is designed to be a balance between honoring the ongoing mourning period for former President Jimmy Carter and recognizing the importance of the peaceful transition of power during the presidential inauguration. 

“Temporarily raising the flags to full-staff for the inauguration underscores the significance of this democratic tradition, while returning them to half-staff afterward ensures continued respect for President Carter’s legacy,” the spokesperson said.

GET THE MORNING HEADLINES.

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Federal disaster declaration approved for Northwest Alaska flooding

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Federal disaster declaration approved for Northwest Alaska flooding


ANCHORAGE, Alaska (KTUU) – President Joe Biden announced the approval of federal disaster assistance on Thursday for recovery efforts in areas that sustained damage from flooding and storms in October 2024.

Those areas include the Bering Strait Regional Educational Attendance Area (REAA) and the Northwest Arctic Borough area where many structures were damaged by a severe storm from Oct. 20-23, 2024.

Jerry Jones and his two children were rescued Wednesday after being stranded overnight on the roof of their flooded cabin about 15 miles north of Kotzebue during a large storm impacting Western Alaska.(Courtesy of Jerry Jones)
Kotzebue Flooding
Kotzebue Flooding(Michelle Kubalack)

In a press release, FEMA announced that federal funding is available on a cost-sharing basis for emergency work to the state of Alaska, tribal and eligible local governments, and certain private nonprofit organizations.

The announcement comes just a few days after Biden released the major disaster declaration approval for the August Kwigillingok flooding.

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