The U.S. Bureau of Land Management approved a drilling permit for ConocoPhillips today that will set the stage for the first oil and gas production from the National Petroleum Reserve-Alaska.
The approved permit is for the Greater Mooses Tooth 1 project which ConocoPhillips filed for in July 2013.
Conoco spokeswoman Natalie Lowman says the permit approval is good news and the company is seeking a funding decision on the project in a time of low oil prices.
Lowman: “I think it’s safe to say that these are difficult economic times but ConocoPhillips has been working this project for quite a while and we’ll see what happens when we continue to seek a funding decision.”
Lowman says the proposed Greater Moose’s Tooth 1 project would be a drill pad in the NPRA with a number of wells on it, possibly producing up to 30,000 barrels per day at peak production.
In a BLM release, Director Neil Korze said the process was a collaborative effort to provide a new source of oil for the trans-Alaska pipeline while ensuring responsible measures are taken in that arctic reserve.
A mitigation strategy tailored to that region is being developed.
Governor Bill Walker said in a press release, “The National Petroleum Reserve is estimated to hold more than 800 million barrels of oil. As Alaska grapples with a $3.5 billion deficit due in part to low oil prices and production, we applaud the hard work by ConocoPhillips to obtain this drilling permit and right-of-way grant for the Greater Mooses Tooth Unit.”
The news was applauded by U.S. Sen. Lisa Murkowski but she noted the “tortured path” she says Alaskans have been forced to navigate to develop on federal lands in Alaska.