by PeakOiler » Mon 03 Sep 2012, 08:07:37
UPI Article-Energy Resources$this->bbcode_second_pass_quote('', 'J')UNEAU, Alaska, Aug. 27 (UPI) -- Alaska is considering unconventional oil plays to increase production but a federal agency said it might be difficult to do so economically.
Oil production in Alaska peaked more than 20 years ago with slightly more than 2 million barrels of oil produced per day, state figures indicate. Slumping oil production in the state has left the Trans-Alaska Pipeline system operating at about 30 percent of its capacity.
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The Trans-Alaska Pipeline system has an expected service life of 10 years given anticipated declines in oil flows from the state.The U.S. Geological Survey in February said unconventional reserves could be bountiful in the state.
David Houseknecht, a USGS scientist, was quoted by the Post as saying the prospects were uncertain, however.
"It is really an unknown whether that oil can be recovered from the source rock and can that oil be recovered at a rate and volume per well that would be economically viable," he said.
It seems the increased tax breaks for oil exploration in Alaska will go forward.
Alaska Dispatch Article$this->bbcode_second_pass_quote('', 'A') complex regulatory battle is brewing over how much money the owners of the trans-Alaska oil pipeline charge to ship crude, one that raises questions about Gov. Sean Parnell's push to slash billions of dollars in oil taxes.
Parnell has said that the trans-Alaska pipeline -- the 800-mile umbilical cord that symbolizes the state's lifeblood industry -- is running low on oil and could shut down in as early as eight years under certain conditions.
To solve that alleged dilemma, he has advocated for the Alaska Legislature to cut oil taxes by up to $2 billion a year for the companies that produce crude from state lands. Parnell and others claim that will result in the companies searching for more oil and pumping it into the trans-Alaska pipeline.