Prudhoe Bay

by Channel 2 News staff and The Associated Press Sunday, July 11, 2010 LONDON -- A British newspaper says that BP is talking with Apache Corp. of the United States about possibly selling $18 billion worth of assets. BP spokespersons Robert Wine and Steve Rinehart both said the company would not comment on "market speculation. " According to MSNBC.com, the Sunday Times of London said Apache Corp., based in Houston, approached BP to discuss the possibility of acquiring some of its assets, including a stake in the Prudhoe Bay field in Alaska.

by Lori Tipton Monday, July 12, 2010 ANCHORAGE, Alaska -- Analysts speculate that BP is trying to sell billions of dollars in assets to pay for cleanup efforts for its Deepwater Horizon oil spill in the Gulf of Mexico. There are multiple reports that the Houston-based Apache Corp is negotiating the purchase of BP's assets -- including its stake in the Prudhoe Bay oil field. State oil and gas officials say they believe this is merely speculation, but that it would not be the first time Apache has purchased assets from BP. On the North Slope, BP owns a 26 percent stake in Prudhoe Bay. The company also operates 14 other oil fields and four pipelines in the area.

Prudhoe Bay received a rare treat this winter on Saturday: a sunrise that could actually be seen, the first in two months at the oil-production facilities on Alaska's northern coastline. Locals say poor weather and high winds in the area have consistently produced “blowouts” of airborne snow, keeping daybreak behind a veil of diffused light. Channel 2 reporter Blake Essig says the break in the clouds to witness the sun rise was a lucky one for him, as well as photographer Albert Lutan, after a daunting trip up the Dalton Highway in some of the worst conditions the year has to offer in the region.

BP has sold multiple assets in Texas, Canada and Egypt to Houston-based Apache Corp., after speculation that the company would be selling its Alaska assets in Prudhoe Bay. The sale is meant to help BP pay for rising costs after the Gulf of Mexico oil spill. At the state Division of Oil and Gas, the news didn't come as much of a surprise. Kevin Banks, the division's director, says that even though BP didn't sell its Alaska assets, the state is still keeping an eye out. "I think we're still going to be kind of vigilant.

by Becky Bohrer The Associated Press Friday, May 21, 2010 JUNEAU, Alaska -- A federal pipeline agency last month issued a warning letter to BP Exploration Alaska surrounding the company's handling of certain corrosion issues affecting its Endicott Pipeline. The letter, by the federal Pipeline and Hazardous Materials Safety Administration, stems from a 2009 inspection of the pipeline at Prudhoe Bay. The letter says BP failed during that process to provide records showing it was guarding against corrosion.

Doyon Drilling Inc. has named the worker who was killed Monday morning in an accident on Spy Island, a man-made island in the Beaufort Sea about 25 miles from Prudhoe Bay on Alaska's North Slope. Company officials say David James, a shareholder in DDI parent corporation Doyon, Limited, was a roustabout pusher on Spy Island's Rig 15. James, 56, was originally from Fort Yukon. In a statement Monday, DDI parent corporation Doyon, Limited said the employee's name was being withheld pending notification of family members.

by Ted Land Wednesday, Aug. 27, 2008 ANCHORAGE, Alaska-- The Alaska Gas pipeline project is taking a big step forward.  Gov. Sarah Palin officially awarded the Alaska Gasline Inducement Act license to TransCanada. The Canadian pipeline company may now start building the pipeline, which will ultimately stretch more than 1,700 miles, from Prudhoe Bay to Alberta. Pipeline construction will employ about 15,000 workers at its peak, according to the governor.

A tribunal of arbitrators has awarded the State of Alaska $255 million in a dispute with BP over tax losses over production shortfalls dating back to Prudhoe Bay pipeline leaks and replacements in 2006, state officials announced Thursday. The decision by the three arbitrators -- Mark Kantor, Thomas Reavley and Thomas Brewer -- says the losses occurred due to incidents at both Prudhoe Bay and the Greater McIntyre Point Area. While BP argued that any losses in production were short-lived and made up for by rebounds in subsequent production under higher oil prices, the tribunal dismissed the company's position in its unanimous Oct. 31 decision, following a four-week hearing in May and June.

So what could you do with a tax break of $700-thousand a day for the next ten years? A lot, huh. Well the three major oil producers on the North Slope say they couldn't do much with that kind of money. Just manage a continued, steady decline there. On Wednesday, representatives of the three big producers testified before the Alaska Senate Finance Committeee. They told committee members that they need a tax break of almost $5-million a day to stop Prudhoe Bay's decline -- and start bringing the numbers back up. Some lawmakers are skeptical of that promise.

by Christine Kim Wednesday, January 13, 2010 ANCHORAGE, Alaska -- The Kodiak Kenai Cable Co. announced the first undersea fiber optic route that links Japan to the United Kingdom by going through the Arctic Ocean. It's called the Arctic Link, and it will cross two oceans, three seas and connect three continents. The network is comprised of three segments: From Tokyo to Dutch Harbor, to Prudhoe Bay to the United Kingdom. The link totals 10,000 miles. The $1.2 billion project goes through the Northern Fiber Optic Link, a separate project that's already underway along Alaska's western coastline.

Prudhoe Bay received a rare treat this winter on Saturday: a sunrise that could actually be seen, the first in two months at the oil-production facilities on Alaska's northern coastline. Locals say poor weather and high winds in the area have consistently produced “blowouts” of airborne snow, keeping daybreak behind a veil of diffused light. Channel 2 reporter Blake Essig says the break in the clouds to witness the sun rise was a lucky one for him, as well as photographer Albert Lutan, after a daunting trip up the Dalton Highway in some of the worst conditions the year has to offer in the region.

A tribunal of arbitrators has awarded the State of Alaska $255 million in a dispute with BP over tax losses over production shortfalls dating back to Prudhoe Bay pipeline leaks and replacements in 2006, state officials announced Thursday. The decision by the three arbitrators -- Mark Kantor, Thomas Reavley and Thomas Brewer -- says the losses occurred due to incidents at both Prudhoe Bay and the Greater McIntyre Point Area. While BP argued that any losses in production were short-lived and made up for by rebounds in subsequent production under higher oil prices, the tribunal dismissed the company's position in its unanimous Oct. 31 decision, following a four-week hearing in May and June.

Dan first came to Alaska “sight unseen,” hired by KTUU as a Reporter in 2003. Dan laughingly says former News Director/Anchor John Tracy took a chance on him in much the same fashion, “sight unseen.”   Prior to his move to Alaska, Dan was a Reporter in the Lower-48 - working in Florida, Pennsylvania and Minnesota and even a stint in his home state of New York. He thought Alaska would be a great, new adventure.   After a “long and magnificent” drive up the Al-Can, Dan arrived at KTUU's door wearing a really stupid-looking Moose hat -- and a silly grin.

Alaska's natural resources continues to stir energy discussions with 2 big developments: Natural Gas and Arctic Drilling.    First, a topic that suddenly seems to be getting more attention than usual: Proposals for that long-awaited Natural Gas Pipeline from the North Slope. Former Governor Frank Murkowski told a luncheon Monday in downtown Anchorage that he backs a proposal for a large-diameter "All-Alaska" pipeline project -- leading to an LNG Terminal either in Valdez or Cook Inlet.

Carlile Transportation Systems announced a new service Wednesday, allowing customers to have purchases from online or catalog retailers shipped to the trucking firm's terminal in Washington, then driven to its Alaska terminals via the Alcan Highway. The company says its Carlile Package Express will accept packages up to pallet-sized loads -- 48 by 40 inches -- for Alaska customers at its facility in Tacoma, Wash. The items are then shipped overland to Anchorage in about three days, at what Carlile calls a significant savings over options typically offered by retailers.

The Trans-Alaska Pipeline System pumped its first oil from Prudhoe Bay to the Port of Valdez on June 20, 1977 -- making Wednesday the 20th anniversary of the project's startup. Alyeska Pipeline Service Co., which maintains the pipeline, says that since TAPS became operational, more than 16.5 billion barrels of oil have flowed through it. The peak was in 1988 with 2.1 billion barrels of oil, but its average in 2011 was about 590,000 barrels per day. Alyeska says that 11 percent of the U.S. domestic oil supply comes through the pipe.

With the the 30-thousand-dollar-a-day legislative session still in limbo, committee hearings were held. Though no laws can be passed, now that the Senate has adjourned, two Senate Committees did examine two important issues: the high cost of energy in our state, and a controversial agreement to develop the oil and gas field at Point Thomson. First, the high cost of energy. After considering the problem of Alaska's high electrical, home heating and gasoline costs, the Senate Finance Committee voted to spend $150,000 to study the issue.

There was more testimony on oil taxes during the state Legislature's special session Monday, as an energy consultant said big tax breaks including existing North Slope oil fields could pay for themselves -- but would put the state in the hole for at least eight years. Janak Mayer of PFC Energy told the House Resources Committee that the cuts would put the state in the hole for at least eight years, and wouldn't break even by the year 2020 -- but only if they could stem the North Slope's production decline from an average annual drop of 6 percent to an annual decline of 2 percent.

Doyon Drilling Inc. has named the worker who was killed Monday morning in an accident on Spy Island, a man-made island in the Beaufort Sea about 25 miles from Prudhoe Bay on Alaska's North Slope. Company officials say David James, a shareholder in DDI parent corporation Doyon, Limited, was a roustabout pusher on Spy Island's Rig 15. James, 56, was originally from Fort Yukon. In a statement Monday, DDI parent corporation Doyon, Limited said the employee's name was being withheld pending notification of family members.

So what could you do with a tax break of $700-thousand a day for the next ten years? A lot, huh. Well the three major oil producers on the North Slope say they couldn't do much with that kind of money. Just manage a continued, steady decline there. On Wednesday, representatives of the three big producers testified before the Alaska Senate Finance Committeee. They told committee members that they need a tax break of almost $5-million a day to stop Prudhoe Bay's decline -- and start bringing the numbers back up. Some lawmakers are skeptical of that promise.