alaska oil and gas conservation commission (aogcc) · alaska oil and gas conservation commission...
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House Finance 3/16/11 1February 22, 2011 1
Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission (AOGCC) (AOGCC)
Alpine Oil Field Photo taken by Lou Grimaldi
Daniel T. Seamount – Geology Commissioner, ChairCathy P. Foerster - Engineering Commissioner
John K. Norman – Public Member Commissioner
333 W. 7th Ave., Ste. 100Anchorage, AK 99501
(907)279-1433www.aogcc.alaska.gov
House Finance 3/16/11 2
Alaska Oil and Gas Conservation Commission
• AOGCC Mission• Charts and Statistics
1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work)
• The Future
House Finance 3/16/11 3February 22, 2011 3
Alaska Oil & Gas Conservation Alaska Oil & Gas Conservation Commission (AOGCC)Commission (AOGCC)
Quasi‐judicial State regulatory agency– Oversight for underground oil & gas operations
• Private and public lands in Alaska
• Exercises police power of the State
• Regulate drilling and production for oil, gas & geothermal resources
House Finance 3/16/11 4February 22, 2011 4
AOGCC MissionAOGCC Mission• Prevent waste of energy resources (Oil, Gas, Geothermal)
• Promote greater ultimate energy resource recovery
• Protect underground fresh water from damage caused by oil, gas, and geothermal operations
• Protect human safety• Protect correlative rights
House Finance 3/16/11 5February 22, 2011 5
AOGCC JurisdictionAOGCC Jurisdiction
• Oil and gas resource development
• Geothermal resource development
• Underground storage of natural gas
• Metering accuracy for custody transfer
House Finance 3/16/11 6February 22, 2011 6
Types of AOGCC Permits/DecisionsTypes of AOGCC Permits/Decisions
• Drilling‐ 2300+ last 10 years
• Wellwork‐ 4000+ last 10 years
• Underground Injection (EOR, Waste disposal, Gas Storage)‐ 46 last 10 years
• Conservation Orders (mainly Pool Rules)‐ 192 major orders plus 100’s more modifications over last 10 years
• Special development considerations (dispute adjudication, gas flaring, safety equipment, and others)‐ 67 last 10 years
House Finance 3/16/11 7
Development Timeline for North Slope Oil Fields
1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015
FIELD - POOL
PRUDHOE BAY – PRUDHOE -- 9-1/2 years --
PRUDHOE BAY - LISBURNE
KUPARUK RIVER – KUPARUK -- 12-3/4 Years --
MILNE POINT - KUPARUK
MILNE POINT - SCHRADER BLUFF
PRUDHOE BAY - BOREALIS
PRUDHOE BAY - ORION
KUPARUK RIVER - WEST SAK
ENDICOTT – ENDICOTT ---------------- 9-1/2 Years --------------------------
NORTHSTAR – NORTHSTAR
PRUDHOE BAY - NIAKUK
BADAMI - BADAMI
KUPARUK RIVER – TARN -------------- 7-1/2 Years -----------------------------------------------------------------
COLVILLE RIVER – FIORD ---------- 14 Years --------------------------------------------------------------------------
OOOGURUK - KUPARUK
OOOGURUK - NUIQSUT
COLVILLE RIVER - ALPINE ------------- 6-1/2 Years --------------------------------------------------------------------------
KUPARUK RIVER - TABASCO
COLVILLE RIVER - QANNIK
KUPARUK RIVER – MELTWATER --- 1-1/2 Years ---------------------------------------------------------------------------------------------
COLVILLE RIVER – NANUQ ---------- 6-1/2 Years ---------------------------------------------------------------------------------------------
NIKAITCHUQ - SCHRADER BLUFF ------- (Most Recent Development : 6-3/4 Years from Discovery to 1st Production) ---------
Discovery Limited Regular Production Regular Production
Average = 11 years (neglecting the 5 longest)
PRUDHOE BAY - POLARIS
PRUDHOE BAY - AURORA
AOGCC March 14, 2011
House Finance 3/16/11 8
Alaska Oil and Gas Conservation Commission
• AOGCC Mission• Charts and Statistics
1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work)
• The Future
0
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
0
50
100
150
200
250
300
350
1950 1960 1970 1980 1990 2000 2010
Alaska Oil & Gas ActivityN
umbe
r of P
erm
its a
nd A
ctiv
e O
il an
d G
as R
eser
voirs
Num
ber of Active W
ells
Prudhoe Bay / Kuparuk
Cook Inlet
Satellite Developments
House Finance 3/16/11 9AOGCC March 15, 2011
House Finance 3/16/11 10
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Alaska's Average Daily Oil & NGL Production Rate
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Cook Inlet
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
AOGCC March 12, 2011
House Finance 3/16/11 11AOGCC March 12, 2011
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1970 1975 1980 1985 1990 1995 2000 2005 2010
North Slope Average Daily Oil & NGL Production Rate
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
House Finance 3/16/11 12
Alaska Oil and Gas Conservation Commission
• AOGCC Mission• Charts and Statistics
1. Historical O & G Activity2. Drilling Permits (the Plans of interested serious potential
investors)3. Drilled Wells and Well Work (the Actual Work)
• The Future
House Finance 3/16/11 13
App
rove
d Pe
rmits
0
5
10
15
20
25
30
35
1996
4
1997
3
1998
5
1999
2
2000
6
2001
5
2002
7
2003
8
2004
9
2005
12
2006
9
2007
11
2009
13
2008
10
$0
$20
$40
$60
$80
$100
$120
$140
EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil, Gas, and Alternative Energy
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
Total Permits = 292AOGCC February 24, 2011
2010
5
Key
5 Number of Operatorsobtaining permits during specified year
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR-MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
CITY OF AKUTAN
CIRI
LINC ENERGY
ORMAT NEVADA
Oil and Gas Permits
Alternative Energy Permits
Slide 1 of 4
StatewideOil, Gas, and Alternative Energy
House Finance 3/16/11 14
App
rove
d Pe
rmits
0
5
10
15
20
25
30
35
1996
4
1997
3
1998
5
1999
2
2000
6
2001
5
2002
7
2003
8
2004
9
2005
12
2006
9
2007
11
2009
13
2008
10
$0
$20
$40
$60
$80
$100
$120
$140
EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil and Gas
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
Total Permits = 292AOGCC February 24, 2011
2010
2
Key
2 Number of Operatorsobtaining permits during specified year
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR-MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
LINC ENERGY
Oil and Gas Permits
Slide 3 of 4
StatewideOil and Gas Only
House Finance 3/16/11 15
App
rove
d Pe
rmits
0
5
10
15
20
25
30
35
1996
4
1997
3
1998
5
1999
2
2000
6
2001
5
2002
7
2003
8
2004
9
2005
12
2006
9
2007
11
2009
13
2008
10
$0
$20
$40
$60
$80
$100
$120
$140
EXPLORATORY WELL PERMITS (1996 - 2010)Statewide: Oil and Gas
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
Total Permits = 292AOGCC February 24, 2011
2010
2
Key
2 Number of Operatorsobtaining permits during specified year
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR-MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
LINC ENERGY
Oil and Gas Permits
Slide 3 of 4
StatewideOil and Gas Only
House Finance 3/16/11 16
App
roved Pe
rmits
0
5
10
15
20
25
30
35
1996
4
1997
3
1998
5
1999
2
2000
6
2001
5
2002
7
2003
8
2004
9
2005
12
2006
9
2007
11
2009
13
2008
10
$0
$20
$40
$60
$80
$100
$120
$140
EXPLORATORY WELL PERMITS (1996 ‐ 2010)Statewide: Oil and Gas
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
Total Permits = 292AOGCC February 24, 2011
2010
2
Key
2Number of Operatorsobtaining permits during specified year
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR‐MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
LINC ENERGY
Oil and Gas Permits
Slide 3 of 4
StatewideOil and Gas Only
House Finance 3/16/11 17
$0
$20
$40
$60
$80
$100
$120
$140
$160
0
50
100
150
200
250
300
350
400
AK Permits Approved Each Year Quarterly Average of W. Coast Spot Price
West Coast Spot PriceApp
roved Pe
rmits
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
March 11, 2011AOGCC
241253
216
185 177
203
175 176
StatewideOil, Gas, and Alternative Energy
203
249256
134
208
249 244
Approved Permits to Drill for Each Year (1996 ‐ 2010) Statewide: Oil, Gas and Alternative Energy Wells and Wellbores
with Quarterly Average West Coast Spot Price for North Slope Crude Oil
House Finance 3/16/11 18
$0
$20
$40
$60
$80
$100
$120
$140
$160
0
50
100
150
200
250
300
350
400
NS Oil‐Related Permits Approved Each Year Quarterly Average of W. Coast Spot Price
West Coast Spot PriceApp
roved Pe
rmits
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
March 11, 2011AOGCC
203216
190
169
156172
155 158
North Slope OnlyOil-Related Only
194
238 239
119
191
220208
Approved Permits to Drill for Each Year (1996 ‐ 2010) North Slope: Oil‐Related Wells and Wellbores
with Quarterly Average West Coast Spot Price for North Slope Crude Oil
House Finance 3/16/11 19
Alaska Oil and Gas Conservation Commission
• AOGCC Mission• Charts and Statistics
1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work done by actual
investors)• The Future
House Finance 3/16/11 20
House Finance 3/16/11 21
EXPLORATORY WELLS AND WELLBORESStatewide: Completed, Suspended or Abandoned (1996 - 2010)*
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
Num
ber o
f Wel
ls a
nd W
ellb
ores
0
5
10
15
20
25
30
35
$0
$20
$40
$60
$80
$100
$120
$140
Key
9Number of Operatorscompleting wells or wellbores during specified year
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR-MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
CITY OF AKUTAN
CIRI
ORMAT NEVADA
Oil and Gas
Alternative Energy
NAKNEK ELECTRIC
1996
3
1999
2
2001
3
2002
7
2003
5
2005
7
2009
9
2008
7
1997
3
2004
9
1998
6
2000
4
2006
9
2007
10
2010*
9
*Total Wells and Wellbores Completed, Suspended or Abandoned = 248**Reported as of March 1, 2011
AOGCC March 1, 2011
StatewideOil, Gas, and Alternative Energy
House Finance 3/16/11 22
EXPLORATORY WELLS AND WELLBORESOil and Gas: Completed, Suspended or Abandoned (1996 - 2010)*
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
0
5
10
15
20
25
30
35
*Total Wells and Wellbores Completed, Suspended or Abandoned = 240**Reported as of March 1, 2011
AOGCC March 1, 2011
$0
$20
$40
$60
$80
$100
$120
$140
BROOKS RANGE
STORM CAT
TECK COMINCO
FEX
ALASKAN CRUDE
RUTTER & WILBANKS
DEPT of INTERIOR
ENI / KERR-MCGEE
PELICAN HILL
PIONEER/EVERGREEN
TOTAL E&P
ANADARKO
PACIF/FOREST/FORCE
UNOCAL
GRI
AURORA
MARATHON
CONOCOPHIL/ARCO
BP
SAVANT
RENAISSNACE
FOWLER
ARMSTRONG
ULTRASTAR
RAMPART ENERGY
EXXONMOBIL
Oil and Gas
1996
3
1999
2
2001
3
2002
7
2003
5
2005
7
2009
9
2008
7
1997
3
2004
9
1998
6
2000
4
2006
9
2007
10
2010**
5
Num
ber o
f Wel
ls a
nd W
ellb
ores
Key
5Number of Operatorscompleting wells or wellbores during specified year
Alternative Energy
StatewideOil and Gas Only
House Finance 3/16/11 23
DEVELOPMENT AND SERVICE WELLS / WELLBORES Statewide: Completed, Suspended or Abandoned (1996 - 2010)*
with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
0
50
100
150
200
250
300
350
Operator
7Number of Operatorscompleting wells and/ or wellbores during a specified year$0
$20
$40
$60
$80
$100
$120
$140
1997
3
1996
4
1998
6
1999
5
2000
7
8
2001 2002
7
2003
7
2004
6
2005
5
2006
45
2007 2008
6
2009
7
2010*
7
BP
RUTTER & WILBANKS
ENI / KERR-MCGEE
PIONEER/EVERGREEN
PACIFIC/FOREST/FORCE
UNOCAL
AURORA
MARATHON
CONOCOPHILLIPS/ARCO
XTO
EXXONMOBIL
SAVANT
Total Wells and Wellbores = 2,784*Reported as of March 1, 2011
AOGCC March 1, 2011
Num
ber o
f Wel
ls a
nd W
ellb
ores
StatewideOil and Gas Only
House Finance 3/16/11 24
0
50
100
150
200
250
300
350
Operator
7Number of Operatorscompleting wells and/ or wellbores during a specified year$0
$20
$40
$60
$80
$100
$120
$140
BP
RUTTER & WILBANKS
ENI / KERR-MCGEE
PIONEER/EVERGREEN
PACIFIC/FOREST/FORCE
UNOCAL
AURORA
MARATHON
CONOCOPHILLIPS/ARCO
XTO
EXXONMOBIL
SAVANT
Total Wells and Wellbores = 2,784*Reported as of March 1, 2011
AOGCC March 1, 2011
Num
ber o
f Wel
ls a
nd W
ellb
ores
Statewide Oil and Gas Only
1996
153
1997
151
1998
179
1999
70
2000
94
2001
130
2002
145
2003
135
2004
141
2005
98
2006
72
2007
81
2008
86
2009
82
2010
83*
DEVELOPMENT AND SERVICE WELLS / WELLBORES Statewide: Completed, Suspended or Abandoned (1996 - 2010)*
by BP Exploration (Alaska), Inc.with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
House Finance 3/16/11 25
DEVELOPMENT AND SERVICE WELLS / WELLBORES Statewide: Completed, Suspended or Abandoned (1996 - 2010)*
by ConocoPhillips Alaska, Inc.with West Coast Spot Price for Alaska North Slope Crude Oil (Dollars per Barrel)
0
50
100
150
200
250
300
350
Operator
7Number of Operatorscompleting wells and/ or wellbores during a specified year$0
$20
$40
$60
$80
$100
$120
$140
BP
RUTTER & WILBANKS
ENI / KERR-MCGEE
PIONEER/EVERGREEN
PACIFIC/FOREST/FORCE
UNOCAL
AURORA
MARATHON
CONOCOPHILLIPS/ARCO
XTO
EXXONMOBIL
SAVANT
Total Wells and Wellbores = 2,784*Reported as of March 1, 2011
AOGCC March 1, 2011
Num
ber o
f Wel
ls a
nd W
ellb
ores
StatewideOil and Gas Only
1996
44
1997
36
1998
76
1999
41
2000
66
2001
59
2002
47
2003
55
2004
67
2005
67
2006
65
2007
72
2008
51
2009
43
2010
66**
House Finance 3/16/11 26Oil Producer - ActiveOil Producer - Inactive
Injector - ActiveInjector - Inactive
Injector - WasteWater Supply
207196
261
115
167
206 203193
216
176
146
168
150
138
AOGCCMarch 2, 2011
Num
ber o
f Com
plet
ed W
ells
/ W
ellb
ores
West C
oast Spot Price (Dollars per B
arrel)
168*
Slide 2 of 2Total Wells and Wellbores = 2,710
*Reported as of March 1, 2011
Completed, Suspended and Abandoned Oil and Support Wells and Wellbores – North Slope Only 1996 – 2010*
with Quarterly Average West Coast Spot Price for North Slope Crude OilNorth Slope OnlyOil Only
House Finance 3/16/11 27
House Finance 3/16/11 28
House Finance 3/16/11 29
House Finance 3/16/11 30
$0
$20
$40
$60
$80
$100
$120
$140
$160
0
100
200
300
400
500
600
700
800
Workover Activities Performed Each Year Quarterly Average of W. Coast Spot Price
Well Workover Activities for Each Year (North Slope Only) 2003 ‐ 2010*with Quarterly Average West Coast Spot Price for North Slope Crude Oil
West Coast Spot Price
Sund
ry and
Com
pletion Re
ports R
eceived
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010*Reported as of March 9, 2010
March 9, 2011
AOGCC's database is incomplete prior to 2003.
AOGCC
468443
500
569
434
582
582558
North Slope OnlyOil Only
House Finance 3/16/11 31
Alaska Oil and Gas Conservation Commission
• AOGCC Mission• Charts and Statistics
1. Historical O & G Activity2. Drilling Permits (the Plan)3. Drilled Wells and Well Work (the Actual Work)
• The Future
House Finance 3/16/11 32
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010
Alaska's Average Daily Oil & NGL Production Rate
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Cook Inlet
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
200,000BOPD
AOGCC March 12, 2011
House Finance 3/16/11 33
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate )
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Cook Inlet
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
200,000BOPD
AOGCC March 12, 2011
House Finance 3/16/11 34
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate with Alpine-Sized Field Added 2018)
Another Alpine (Online 2018)
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Cook Inlet
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
200,000BOPD
AOGCC March 12, 2011
House Finance 3/16/11 35AOGCC March 12, 2011
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040
Alaska's Average Daily Oil & NGL Production Rate (6% Annual Decline Rate with New Fields Added 2018 and 2024)
Another Northstar (2024)
Another Alpine (Online 2018)
Oooguruk & Nikaitchuq
Colville River & Northstar
North Slope - Other Fields
Kuparuk & Milne Point
Prudhoe Bay
Cook Inlet
Dai
ly P
rodu
ctio
n Ra
te (
Barr
els
per
Day
)
200,000BOPD
House Finance 3/16/11 36Sep. 2, 2004AOGCC Testimony ‐ Joint Hearing ‐ Senate Resources & Legislative Budget and Audit
Committees36
Alaska Oil and Gas Conservation Commission (AOGCC)
Contact Information
Phone: (907) 793-1221 Fax: (907) 276-7542
www.aogcc.alaska,gov
Photo by Daniel T. Seamount III