alaska oil and gas conservation commission (aogcc) · alaska oil and gas conservation commission...

House Finance 3/16/11 1February 22, 2011 1

Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission (AOGCC) (AOGCC)

Alpine Oil Field Photo taken by Lou Grimaldi

Daniel T. Seamount – Geology Commissioner, ChairCathy P. Foerster - Engineering Commissioner

John K. Norman – Public Member Commissioner

333 W. 7th Ave., Ste. 100Anchorage, AK 99501

(907)279-1433www.aogcc.alaska.gov

House Finance 3/16/11 2

Alaska Oil and Gas Conservation Commission

• AOGCC Mission• Charts and Statistics

1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work)

• The Future


Alaska Oil & Gas Conservation Alaska Oil & Gas Conservation Commission (AOGCC)Commission (AOGCC)

Quasi‐judicial State regulatory agency– Oversight for underground oil & gas operations

• Private and public lands in Alaska

• Exercises police power of the State

• Regulate drilling and production for oil, gas & geothermal resources


AOGCC MissionAOGCC Mission• Prevent waste of energy resources (Oil, Gas, Geothermal)

• Promote greater ultimate energy resource recovery

• Protect underground fresh water from damage caused by oil, gas, and geothermal operations

• Protect human safety• Protect correlative rights


AOGCC JurisdictionAOGCC Jurisdiction

• Oil and gas resource development

• Geothermal resource development

• Underground storage of natural gas

• Metering accuracy for custody transfer


Types of AOGCC Permits/DecisionsTypes of AOGCC Permits/Decisions

• Drilling‐ 2300+ last 10 years

• Wellwork‐ 4000+ last 10 years

• Underground Injection (EOR, Waste disposal, Gas Storage)‐ 46 last 10 years

• Conservation Orders (mainly Pool Rules)‐ 192 major orders plus 100’s more modifications over last 10 years

• Special development considerations (dispute adjudication, gas flaring, safety equipment, and others)‐ 67 last 10 years


Development Timeline for North Slope Oil Fields

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

FIELD - POOL

PRUDHOE BAY – PRUDHOE -- 9-1/2 years --

PRUDHOE BAY - LISBURNE

KUPARUK RIVER – KUPARUK -- 12-3/4 Years --

MILNE POINT - KUPARUK

MILNE POINT - SCHRADER BLUFF

PRUDHOE BAY - BOREALIS

PRUDHOE BAY - ORION

KUPARUK RIVER - WEST SAK

ENDICOTT – ENDICOTT ---------------- 9-1/2 Years --------------------------

NORTHSTAR – NORTHSTAR

PRUDHOE BAY - NIAKUK

BADAMI - BADAMI

KUPARUK RIVER – TARN -------------- 7-1/2 Years -----------------------------------------------------------------

COLVILLE RIVER – FIORD ---------- 14 Years --------------------------------------------------------------------------

OOOGURUK - KUPARUK

OOOGURUK - NUIQSUT

COLVILLE RIVER - ALPINE ------------- 6-1/2 Years --------------------------------------------------------------------------

KUPARUK RIVER - TABASCO

COLVILLE RIVER - QANNIK

KUPARUK RIVER – MELTWATER --- 1-1/2 Years ---------------------------------------------------------------------------------------------

COLVILLE RIVER – NANUQ ---------- 6-1/2 Years ---------------------------------------------------------------------------------------------

NIKAITCHUQ - SCHRADER BLUFF ------- (Most Recent Development : 6-3/4 Years from Discovery to 1st Production) ---------

Discovery Limited Regular Production Regular Production

Average = 11 years (neglecting the 5 longest)

PRUDHOE BAY - POLARIS

PRUDHOE BAY - AURORA

AOGCC March 14, 2011





• The Future

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

0

50

100

150

200

250

300

350

1950 1960 1970 1980 1990 2000 2010

Alaska Oil & Gas ActivityN

umbe

r of P

erm

its a

nd A

ctiv

e O

il an

d G

as R

eser

voirs

Num

ber of Active W

ells

Prudhoe Bay / Kuparuk

Cook Inlet

Satellite Developments

House Finance 3/16/11 9AOGCC March 15, 2011


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Alaska's Average Daily Oil & NGL Production Rate

Oooguruk & Nikaitchuq

Colville River & Northstar

North Slope - Other Fields

Kuparuk & Milne Point

Prudhoe Bay

Cook Inlet

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1970 1975 1980 1985 1990 1995 2000 2005 2010

North Slope Average Daily Oil & NGL Production Rate





Prudhoe Bay

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)




1. Historical O & G Activity2. Drilling Permits (the Plans of interested serious potential

investors)3. Drilled Wells and Well Work (the Actual Work)

• The Future


App

rove

d Pe

rmits

0

5

10

15

20

25

30

35

1996

4

1997

3

1998

5

1999

2

2000

6

2001

5

2002

7

2003

8

2004

9

2005

12

2006

9

2007

11

2009

13

2008

10

$0

$20

$40

$60

$80

$100

$120

$140

EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil, Gas, and Alternative Energy

with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)

Total Permits = 292AOGCC February 24, 2011

2010

5

Key

5 Number of Operatorsobtaining permits during specified year

BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR-MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

CITY OF AKUTAN

CIRI

LINC ENERGY

ORMAT NEVADA

Oil and Gas Permits

Alternative Energy Permits

Slide 1 of 4

StatewideOil, Gas, and Alternative Energy


App

rove

d Pe

rmits

0

5

10

15

20

25

30

35

1996

4

1997

3

1998

5

1999

2

2000

6

2001

5

2002

7

2003

8

2004

9

2005

12

2006

9

2007

11

2009

13

2008

10

$0

$20

$40

$60

$80

$100

$120

$140

EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil and Gas



2010

2

Key


BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR-MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

LINC ENERGY

Oil and Gas Permits

Slide 3 of 4

StatewideOil and Gas Only


App

rove

d Pe

rmits

0

5

10

15

20

25

30

35

1996

4

1997

3

1998

5

1999

2

2000

6

2001

5

2002

7

2003

8

2004

9

2005

12

2006

9

2007

11

2009

13

2008

10

$0

$20

$40

$60

$80

$100

$120

$140

EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil and Gas



2010

2

Key


BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR-MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

LINC ENERGY

Oil and Gas Permits

Slide 3 of 4



App

roved Pe

rmits

0

5

10

15

20

25

30

35

1996

4

1997

3

1998

5

1999

2

2000

6

2001

5

2002

7

2003

8

2004

9

2005

12

2006

9

2007

11

2009

13

2008

10

$0

$20

$40

$60

$80

$100

$120

$140

EXPLORATORY WELL PERMITS (1996 ‐ 2010)Statewide: Oil and Gas



2010

2

Key

2Number of Operatorsobtaining permits during specified year

BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR‐MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

LINC ENERGY

Oil and Gas Permits

Slide 3 of 4



$0

$20

$40

$60

$80

$100

$120

$140

$160

0

50

100

150

200

250

300

350

400

AK Permits Approved Each Year Quarterly Average of W. Coast Spot Price

West Coast Spot PriceApp

roved Pe

rmits

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

March 11, 2011AOGCC

241253

216

185 177

203

175 176


203

249256

134

208

249 244

Approved Permits to Drill for Each Year (1996 ‐ 2010) Statewide: Oil, Gas and Alternative Energy Wells and Wellbores

with Quarterly Average West Coast Spot Price for North Slope Crude Oil


$0

$20

$40

$60

$80

$100

$120

$140

$160

0

50

100

150

200

250

300

350

400

NS Oil‐Related Permits Approved Each Year Quarterly Average of W. Coast Spot Price

West Coast Spot PriceApp

roved Pe

rmits

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

March 11, 2011AOGCC

203216

190

169

156172

155 158

North Slope OnlyOil-Related Only

194

238 239

119

191

220208

Approved Permits to Drill for Each Year (1996 ‐ 2010) North Slope: Oil‐Related Wells and Wellbores

with Quarterly Average West Coast Spot Price for North Slope Crude Oil




1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work done by actual

investors)• The Future


EXPLORATORY WELLS AND WELLBORESStatewide: Completed, Suspended or Abandoned (1996 - 2010)*


Num

ber o

f Wel

ls a

nd W

ellb

ores

0

5

10

15

20

25

30

35

$0

$20

$40

$60

$80

$100

$120

$140

Key

9Number of Operatorscompleting wells or wellbores during specified year

BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR-MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

CITY OF AKUTAN

CIRI

ORMAT NEVADA

Oil and Gas

Alternative Energy

NAKNEK ELECTRIC

1996

3

1999

2

2001

3

2002

7

2003

5

2005

7

2009

9

2008

7

1997

3

2004

9

1998

6

2000

4

2006

9

2007

10

2010*

9

*Total Wells and Wellbores Completed, Suspended or Abandoned = 248**Reported as of March 1, 2011

AOGCC March 1, 2011



EXPLORATORY WELLS AND WELLBORESOil and Gas: Completed, Suspended or Abandoned (1996 - 2010)*


0

5

10

15

20

25

30

35

*Total Wells and Wellbores Completed, Suspended or Abandoned = 240**Reported as of March 1, 2011

AOGCC March 1, 2011

$0

$20

$40

$60

$80

$100

$120

$140

BROOKS RANGE

STORM CAT

TECK COMINCO

FEX

ALASKAN CRUDE

RUTTER & WILBANKS

DEPT of INTERIOR

ENI / KERR-MCGEE

PELICAN HILL

PIONEER/EVERGREEN

TOTAL E&P

ANADARKO

PACIF/FOREST/FORCE

UNOCAL

GRI

AURORA

MARATHON

CONOCOPHIL/ARCO

BP

SAVANT

RENAISSNACE

FOWLER

ARMSTRONG

ULTRASTAR

RAMPART ENERGY

EXXONMOBIL

Oil and Gas

1996

3

1999

2

2001

3

2002

7

2003

5

2005

7

2009

9

2008

7

1997

3

2004

9

1998

6

2000

4

2006

9

2007

10

2010**

5

Num

ber o

f Wel

ls a

nd W

ellb

ores

Key

5Number of Operatorscompleting wells or wellbores during specified year

Alternative Energy



DEVELOPMENT AND SERVICE WELLS / WELLBORES Statewide: Completed, Suspended or Abandoned (1996 - 2010)*


0

50

100

150

200

250

300

350

Operator

7Number of Operatorscompleting wells and/ or wellbores during a specified year$0

$20

$40

$60

$80

$100

$120

$140

1997

3

1996

4

1998

6

1999

5

2000

7

8

2001 2002

7

2003

7

2004

6

2005

5

2006

45

2007 2008

6

2009

7

2010*

7

BP

RUTTER & WILBANKS

ENI / KERR-MCGEE

PIONEER/EVERGREEN

PACIFIC/FOREST/FORCE

UNOCAL

AURORA

MARATHON

CONOCOPHILLIPS/ARCO

XTO

EXXONMOBIL

SAVANT

Total Wells and Wellbores = 2,784*Reported as of March 1, 2011

AOGCC March 1, 2011

Num

ber o

f Wel

ls a

nd W

ellb

ores



0

50

100

150

200

250

300

350

Operator


$20

$40

$60

$80

$100

$120

$140

BP

RUTTER & WILBANKS

ENI / KERR-MCGEE

PIONEER/EVERGREEN


UNOCAL

AURORA

MARATHON

CONOCOPHILLIPS/ARCO

XTO

EXXONMOBIL

SAVANT


AOGCC March 1, 2011

Num

ber o

f Wel

ls a

nd W

ellb

ores

Statewide Oil and Gas Only

1996

153

1997

151

1998

179

1999

70

2000

94

2001

130

2002

145

2003

135

2004

141

2005

98

2006

72

2007

81

2008

86

2009

82

2010

83*


by BP Exploration (Alaska), Inc.with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)



by ConocoPhillips Alaska, Inc.with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)

0

50

100

150

200

250

300

350

Operator


$20

$40

$60

$80

$100

$120

$140

BP

RUTTER & WILBANKS

ENI / KERR-MCGEE

PIONEER/EVERGREEN


UNOCAL

AURORA

MARATHON

CONOCOPHILLIPS/ARCO

XTO

EXXONMOBIL

SAVANT


AOGCC March 1, 2011

Num

ber o

f Wel

ls a

nd W

ellb

ores


1996

44

1997

36

1998

76

1999

41

2000

66

2001

59

2002

47

2003

55

2004

67

2005

67

2006

65

2007

72

2008

51

2009

43

2010

66**

House Finance 3/16/11 26Oil Producer - ActiveOil Producer - Inactive

Injector - ActiveInjector - Inactive

Injector - WasteWater Supply

207196

261

115

167

206 203193

216

176

146

168

150

138

AOGCCMarch 2, 2011

Num

ber o

f Com

plet

ed W

ells

/ W

ellb

ores

West C

oast Spot Price (Dollars per B

arrel)

168*

Slide 2 of 2Total Wells and Wellbores = 2,710

*Reported as of March 1, 2011

Completed, Suspended and Abandoned Oil and Support Wells and Wellbores – North Slope Only 1996 – 2010*

with Quarterly Average West Coast Spot Price for North Slope Crude OilNorth Slope OnlyOil Only


$0

$20

$40

$60

$80

$100

$120

$140

$160

0

100

200

300

400

500

600

700

800

Workover Activities Performed Each Year Quarterly Average of W. Coast Spot Price

Well Workover Activities for Each Year (North Slope Only) 2003 ‐ 2010*with Quarterly Average West Coast Spot Price for North Slope Crude Oil

West Coast Spot Price

Sund

ry and

Com

pletion Re

ports R

eceived

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*Reported as of March 9, 2010

March 9, 2011

AOGCC's database is incomplete prior to 2003.

AOGCC

468443

500

569

434

582

582558

North Slope OnlyOil Only





• The Future


0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Alaska's Average Daily Oil & NGL Production Rate





Prudhoe Bay

Cook Inlet

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)

200,000BOPD



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate )





Prudhoe Bay

Cook Inlet

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)

200,000BOPD



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate with Alpine-Sized Field Added 2018)

Another Alpine (Online 2018)





Prudhoe Bay

Cook Inlet

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)

200,000BOPD



0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040

Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate with New Fields Added 2018 and 2024)

Another Northstar (2024)

Another Alpine (Online 2018)





Prudhoe Bay

Cook Inlet

Dai

ly P

rodu

ctio

n Ra

te (

Barr

els

per

Day

)

200,000BOPD

House Finance 3/16/11 36Sep. 2, 2004AOGCC Testimony ‐ Joint Hearing ‐ Senate Resources & Legislative Budget and Audit

Committees36

Alaska Oil and Gas Conservation Commission (AOGCC)

Contact Information

Phone: (907) 793-1221 Fax: (907) 276-7542

www.aogcc.alaska,gov

Photo by Daniel T. Seamount III

alaska oil and gas conservation commission (aogcc) · alaska oil and gas conservation commission...

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