Doing Business in Alaska (DBIA)

Business Opportunities in Alaska

Energy: Oil, Gas, Coal

Introduction

Alaska's North Slope Prudhoe Bay oil field discovery in 1967 established Alaska as a world-class oil and gas location.  Productive oil and gas fields developed along the central North Slope. Today there is high potential for new onshore and offshore discoveries in the Arctic. Alaska is also experiencing a resurgence of activity from oil and gas fields on the Kenai Peninsula and offshore in the Cook Inlet.

Known and producing coal resources are currently in the Interior and Southcentral regions of Alaska. There are other potential sites for exploration and infrastructure in place to export coal to overseas markets.

For more on the history of oil in Alaska click here. (take them to history section)
Need a map?

Types of products

  • North Slope – Oil and known gas reserves
  • Cook Inlet /Kenai Peninsula – Oil and known gas reserves including natural gas liquid export
  • Interior Alaska - Subbituminous coal

Export Considerations

All of Alaska's oil and gas production is delivered to refineries on the U.S. West Coast. Pacific Rim countries and Canada are traditional markets for Alaska's energy exports.

Alyeska Pipeline Service Company and
the Trans Alaska Pipeline System

Alyeska Pipeline Service Company manages the Trans Alaska Pipeline System (TAPS).TAPS is an almost 1200 kilometer pipeline moving oil from the North Slope of Alaska to the northern most ice-free port in Valdez, Alaska. Oil tankers load Alaskan crude oil in Valdez. The Valdez Marine Terminal includes 18 oil storage tanks with a total capacity of over 9 million barrels. The Terminal has four tanker loading berths, two of which have special vapor control systems.

Tesoro Alaska Refinery

Oil from Cook Inlet is refined at a Nikiski plant which makes ultra low sulfur gasoline, jet fuel, ultra low sulfur diesel (USLD), heating oil, heavy fuel oils, propane and asphalt. Crude oil is sent by double-hulled tankers through Cook Inlet and Kenai Peninsula pipelines . A pipeline brings jet fuel, gasoline and diesel to the Port of Anchorage and the Ted Stevens Anchorage International Airport. Wholesale delivery occurs at terminals in Kenai, Anchorage, Fairbanks, and Tesoro's Nikiski dock.

Kenai Liquid to Natural Gas Terminal

The Kenai  Liquid to Natural Gas (LNG) liquefaction plant is owned by ConocoPhillips and Marathon Oil Company. At the time of this writing, it is the only commercial exporter of LNG on the continent. The facility has a deepwater docking and loading facilities.

Seward Coal Terminal

Coal from Interior Alaskan is exported via the Seward Coal Terminal and is transported via the Alaska Railroad Corporation.

Marketing Information and Helpful Contacts

Alaska Oil and Gas Association (AOGA)

AOGA is a trade association for the majority of oil and gas exploration, production, transportation, refining and marketing activities in Alaska. Their mission is to foster the long-term viability of the oil and gas industry in Alaska. http://www.aoga.org/

Alaska Industry Support Alliance (The Alliance)

The Alliance (http://alaskaalliance.com/) is a trade organization with more than 400 members. Their mission is to advocate for safe, environmentally responsible development of Alaska's oil, gas and mineral resources for the benefit of Alaskans. The Alliance also holds an annual meeting in the fall in Anchorage.

Resource Development Council of Alaska (RDC)

The RDC (http://www.akrdc.org/) is a statewide business association with people and companies from Alaska's oil and gas, mining, forest products, tourism and fishing industries. RDC's membership includes Alaska Native Corporations, local communities, organized labor, and industry support firms. Their mission is growing Alaska through responsible resource development. The RDC holds its annual meeting in November in Anchorage.

Alaska Gasline Port Authority

The Alaska Gasline Port Authority (http://www.allalaskagasline.com/) is a municipal port authority established in 1999. Current members are the Fairbanks North Star Borough and the City of Valdez. Their highest priority is to bring maximum benefit to Alaska with the all-Alaska gasline.

Important events

TBD also see O&G marketing plan Bear et. al.

 

NAPE Expo (formerly North American Petroleum Expo)

Winter and summer NAPE Expos in Houston, Texas are markets for buying, selling and trading of oil and gas prospects and producing properties. NAPE Expo also hosts an event in the Northeastern United States. http://www.napeexpo.com/

Meet Alaska

Hosted by the Alaska Industry Support Alliance in January, Meet Alaska is Alaska's premier tradeshow for the oil, gas and mining support industry. Benefits include company exposure to more than 500 industry professionals and media recognition. MeetAlaska is held in Anchorage, AK.

Federal and State Government Contacts

  • The United States Department of the Interior (USDOI or DOI)
    has three main agencies that work within the oil and gas sector:
    • Bureau of Land Management (BLM) runs the federal oil and gas leasing program, and issues permits for exploration, facility construction, and drilling. Oil companies pay lease rentals and royalties on oil and gas production to the Office of Natural Resource Revenue (ONRR)
      http://www.blm.gov/ak/st/en/prog/energy/oil_gas.html
    • The U.S. Geological Survey (USGS) Energy Resources Program, Energy Alaska, researches and assesses the location, quantity, and quality of mineral and energy resources. Energy Alaska also looks at the economic and environmental effects of resource extraction and use.
      http://energy.usgs.gov/alaska/
    • The Bureau of Ocean Energy Management, Regulation, and Enforcement (BOEMRE)'s Alaska Outer Continental Shelf Office oversees more than 405 million hectares over more than 9,600 kilometers of coastline. This area includes the Beaufort and Chukchi Seas, the Bering Sea, Cook Inlet, and the Gulf of Alaska. The Alaska Region's responsibilities are environment, leasing and plans, and resource evaluation.
      http://www.boem.gov/Oil-and-Gas-Energy-Program/index.aspx
  • Alaska Oil & Gas Conservation Commission (AOGCC)

    The AOGCC oversees oil and gas drilling, development and production, reservoir depletion and metering operations on all lands subject to the state's authority. It adjudicates oil and gas disputes between owners, including the state. The AOGCC strives for cooperation with industry, while keeping well-defined and essential regulatory requirements.
    http://doa.alaska.gov/ogc/

  • The Alaska Department of Natural Resources (DNR) has four agencies that work with the oil, gas, and coal sectors.
    • The Division of Oil and Gas leases and permits state lands for oil, gas, and geothermal exploration. It also oversees regulatory and field production, conducts lease sales, tracks and audits royalty payments, and conducts strategic analysis. http://dog.dnr.alaska.gov/
    • The Division of Mining, Land and Water: Coal Regulatory Program administers the Alaska Coal Mining Control and Reclamation Act for mining on private, municipal, state and federal land. Alaska's coal program regulates almost all aspects of coal mining activity from exploration to reclamation. http://dnr.alaska.gov/mlw/mining/coal/
    • Trust Land Office: Coal, Oil & Gas: Alaska set-aside assets, including land, for services and programs for individuals with mental health issues in the Alaska Mental Health Trust. The Trust develops its land, including for oil, gas and coal, through the Trust Land Office within DNR. http://www.mhtrustland.org/index.cfm?section=Coal-Oil-and-Gas&page=Coal-Oil-and-Gas
    • The Division of Geological and Geophysical Survey determines Alaska's metals, minerals, fuels, and geothermal resources potential for production, the locations and supplies of groundwater and construction material, and the potential geologic hazards to buildings, roads, bridges, and other installations and structures. http://www.dggs.dnr.state.ak.us/
  • Department of Transportation & Public Facilities (DOT&PF)

    The DOT&PF (http://dot.state.ak.us/) is the lead agency for infrastructure development in Alaska. Through the Roads to Resources program, Alaska focuses on building corridors for moving fuel and supplies to communities and businesses at reduced costs.http://dot.alaska.gov/roadstoresources/projects.shtml

  • State of Alaska Department of Revenue (DOR)

    The Department of Revenue Tax Division implements several tax programs on the oil industry including taxes on production and property (on properties and pipelines), and conservation. http://dor.alaska.gov/

    Revenue's Alaska Natural Gas Development Authority (ANGDA) was created to develop a natural gas pipeline from Prudhoe Bay to tidewater on Prince William Sound and create a spur line for the gas distribution grid in Southcentral, Alaska, to provide North Slope natural gas to Alaskan communities. ANGDA, a public corporation, was created through a 2002 general election ballot initiative. ANGDA also is identifying feasible LNG opportunities for Alaska.http://www.angda.state.ak.us/

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