Alaska's oil industry

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Alaska's oil industry

Trans Alaska Pipeline

"The 800-mile-long Trans Alaska Pipeline System (TAPS) is one of the largest pipeline systems in the world. It stretches from Prudhoe Bay on Alaska’s North Slope, through rugged and beautiful terrain, to Valdez, the northernmost ice-free port in North America. Since pipeline startup in 1977, Alyeska Pipeline Service Company, the operator of TAPS, has successfully transported over 15 billion barrels of oil." [1]

Offshore Drilling

On November 1, 2001, then Interior Secretary Gale Norton and her senior advisor for Alaska affairs, former Alaska State Senator and oil industry insider, Drue Pearce, announced that "the first oil from federal waters off Alaska" had been produced "at the BP Exploration Northstar project," which "became the first outer continental shelf development project since federal offshore leasing began in 1976 off Alaska" and is "the first buried subsea pipeline in the Arctic to be used for full-time production. The pipeline is buried 7-11 feet below the seafloor to avoid ice impacts." [2]

"The Northstar project is a federal-state unit located about 12 miles northwest of Prudhoe Bay in the Alaskan Beaufort Sea and includes three federal and five state leases. About 16 percent of the Northstar reserves are allocated to federal leases and would represent approximately $120 million in federal royalty in future years. The federal leases are also within the OCS boundaries that entitle the state of Alaska to receive 27 percent of federal revenues. BP holds a 98 percent working interest in the field. Murphy Oil Corporation holds a 2 percent working interest." [3]

Norton said that the project was "calculated to produce 175 million barrels of oil – enough energy to fuel nearly 1 million American automobiles for six years." [4]

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