Page 15 - NorthAmOil Week 43 2020

NorthAmOil POLICY NorthAmOil

US approves ConocoPhillips’ NPR-A project

ALASKA THE government of US President Donald Lowman, told the Associated Press that con-
Trump has approved ConocoPhillips’ Willow struction at Willow could begin next year,
project in the National Petroleum Reserve- after the outstanding regulatory approvals are
Alaska (NPR-A). granted, while oil production would start about
“This decision will make a significant contri- five years later.
bution to keeping oil flowing down the 800-mile However, the approval has come under fire
[1,280-km] Trans Alaska Pipeline decades into from environmental groups, who have raised
the future while delivering federal and state reve- concerns about the threat Willow could pose
nue as well as important impact assistance to the to the Teshekpuk Lake Special Area. This is a
affected native communities,” said US Secretary wetland complex in the NPR-A, which supports
of the Interior David Bernhardt in an October migratory birds and calving grounds for the
27 statement. Teshekpuk Lake caribou herd.
Under the approved plan, ConocoPhillips “Administration officials saw an oppor-
will be able to produce up to 590mn barrels of tunity to check off another industry wish-list
oil from Willow on a cumulative basis over the box with the public’s attention diverted by
next 30 years. This equates to up to 160,000 bar- coronavirus [COVID-19], and they took it,”
rels per day of oil, with a processing capacity of the Alaska Wilderness League’s conservation
200,000 bpd, according to the US Bureau of Land director, Kristen Miller, was quoted by state
Management – a division of the Department of media as saying.
the Interior (DoI). Environmental opposition is a given for
The plan allows for up to three drill sites, a major new oil projects in Alaska, and currently
processing facility and gravel roads and pipe- does not appear likely to derail Willow. However,
lines. The BLM said that two further drill sites ConocoPhillips has said its plans at Willow will
and additional roads and pipelines that had also likely be delayed if Ballot Measure 1 passes in
been proposed by ConocoPhillips could be con- the state on November 3. The measure would
sidered at a later date. increase taxes on ConocoPhillips, as well as Exx-
A ConocoPhillips spokeswoman, Natalie onMobil and Hilcorp.™

Alberta to end mandatory oil

production curtailments early

ALBERTA THE provincial government of Alberta has from 22% of the province’s oil output – or
announced that it will end mandatory produc- 880,000 bpd – being shut in at the peak of the
tion curbs on oil at the start of December, a production cuts during the worst of this year’s
month earlier than previously scheduled. downturn. Nonetheless, it appears that manda-
This comes as Alberta’s production continues tory curtailments are no longer needed as pro-
to be reduced as a result of companies reining in ducers keep some demand shut in voluntarily.
output in response to the coronavirus (COVID- The Alberta government said it would extend
19) pandemic. In August, Alberta’s production its regulatory authority to curtail oil output until
was 3.10mn barrels per day, falling significantly December 2021, but that it had no plans to
below than the 3.81mn bpd curtailment limit. impose further production limits at this time.
And Alberta Minister of Energy Sonya Savage Alberta’s current forecasts anticipate inventories
said in a statement last week that nearly 16% of remaining low, with sufficient export capacity to
the province’s crude output was still offline. allow the system to operate efficiently on its own
This lower level of production has eased con- well into 2021.
gestion on pipelines carrying oil out of Alberta “Maintaining the stability and predictability
– which is what the province’s government had of Alberta’s resource sector is vital for investor
been seeking to achieve through the mandatory confidence as we navigate the economic con-
curtailments prior to the pandemic. ditions brought on by the pandemic, the com-
The government had already been gradually modity price crisis and the need for pipelines,”
easing the curtailments since taking office last Savage stated. “This purposeful approach serves
year, and the current industry downturn, exac- as an insurance policy, as it will allow Alberta to
erbated by COVID-19, has allowed it to speed respond swiftly if there is a risk of storage reach-
up the process. ing maximum capacity while enabling industry
The current shut-ins mark an improvement to produce as the free market intended.”™

Week 43 29•October•2020 www. NEWSBASE .com P15