BE2C2 Report — Two energy partners Repsol and Armstrong Energy say they made the largest U.S. onshore oil discovery in three decades in Alaska.
The conventional hydrocarbon oil was found in the wells initially drilled during the 2016 to 2017 winter campaign in an area located in Alaska’s North Slope.
According to a statement by Repsol, the contingent resources identified in the region comprise approximately 1.2 billion barrels of recoverable light oil.
The massive find of conventional oil on state land could bring relief to budget pains in Alaska brought on by slumping production in the state and the crash in oil prices.
Spanish oil giant Repsol has been exploring Alaska for oil reserves since 2008, and began drilling multiple consecutive discoveries in 2011 in the North Slope with its U.S partner Armstrong. The company says the campaigns have added new potential to the area, which was previously understood to be an aging oil basin.
Repsol predicts production could begin as soon as 2021 and lead to as much as 120,000 barrels of output per day.
“Of course, this news won’t ease rising concern among investors about the stubborn glut of oil in the U.S., CNN Money reports.
There also reports that shale oil producers are preparing to ramp up output after surviving a two-year price war with OPEC.
Increasing efficiency in U.S. shale oil production has made it competitively priced in comparison to West African and Asian sweet crude oil, and U.S. exports are redrawing the world’s energy map, CME Group reported Friday.
U.S. crude oil sales to Asia quickly growing
In an unrelated report, analysts say the volume of crude oil being exported by the United States to South Korea, Singapore, China, Japan and Thailand has grown significantly in recent years.
The growing influence of U.S. crude oil exports to Asia was a topic at a recent oil conference in London.
It had been 40 years since crude oil was exported from the United States to points outside North America. Export restrictions were repealed in 2015. Virtually no crude oil was sent to Asia in 2015, but between January and November 2016 the figure rose to 50,000 barrels per day, U.S. Energy Information Administration figures said.
Exports to Singapore, China, Japan, Thailand and South Korea have already grown in 2017 as well.