“Bullish-on-Alaska” Activities Abound as 2019 Draws to a Close

“Bullish-on-Alaska” Activities Abound as 2019 Draws to a Close

December 23, 2019

Alaskans and outsiders looking for future work in the oilfields of the North Slope and Cook Inlet should be thrilled by several activities that have taken place over the past 10 days in Alaska.

On December 11th, the annual lease sale in the National Petroleum Reserve – Alaska (NPR-A) was successful, with the most acreage bid on since 2004.  A single company, North Slope Exploration, LLC, bid on leases covering land larger than Rhode Island in size, with ConocoPhillips and Emerald House also submitting winning bids on lease tracts.  Although production from these areas may be a decade or more away, the overall scope and interest in the NPR-A could be extraordinary for future jobs in Alaska’s energy sector.

On December 16th, a joint committee of the State House and Senate Resources Committee heard testimony regarding the purchase of BP’s Alaskan assets by Hilcorp.  State DNR Commissioner Corri Feige noted that the State is hopeful the transaction can be completed by June 30, 2020, that the State is taking the transaction seriously, and that progress is being made toward completion of the sale.  The men and women working for BP certainly will welcome the progress, as most of them will transition to Hilcorp once the deal is complete.  With Hilcorp continuing to advance exploration and development projects in both Cook Inlet and on the Slope, the future is bright for expansion of its workforce over time.

Then, yesterday, it was announced that the assets of Furie, a former operating company in Cook Inlet that filed bankruptcy earlier this year, were being sold to Hex, LLC, which is headed up by long-time Alaskan oil executive John Hendrix.  With Hendrix’ track record in Cook Inlet, he and his organization stand a strong chance of replenishing the workforce and re-engaging in the Inlet’s collection of functioning rigs.

These activities show a continued interest in Alaska by both major and independent producers.  This interest – along with opportunities upcoming on the Slope and in ANWR – could bring tens of thousands of jobs to our state. The future is bright, and Power The Future will be here to advocate for, and protect all of Alaska’s energy workers – current and future – from the continuous attacks from eco-extremists, anti-development ideologues and those who wish to diminish the state’s future.