Arctic Alaska oil production dropped this winter due to warmer than expected conditions. Higher temperatures impacted equipment which is designed to work in frigid conditions.
Arctic Alaska oil production dropped the most in Prudhoe Bay field
Alaska state officials say Arctic Alaska oil production was impacted by the warmest winter on record as equipment designed to work in frigid conditions unable to operate at its peak, according to a report by Reuters.
Alaska Revenue Commissioner Sheldon Fisher told state lawmakers on Monday that production of North slope grade crude averaged about 518,000 barrels per day (b/d) through the current fiscal year. This is lower than the anticipated 533,000 b/d forecast last fall.
Fisher says warmer temperatures are to blame.
“Overall the weather has been warmer in this winter,” Fisher said while speaking to the state Senate’s finance committee. “We actually do better when the winter is colder. The equipment operates better and they’re able to accomplish more with colder weather.”
Record high temperatures were noted on the North Slope, according to Rick Thoman, climate science and services manager for the National Weather Service in Alaska.
Deadhorse, a camp community at Prudhoe Bay saw an average December-to-February temperature of -0.1 ° Fahrenheit (-17.8° Celsius), or 14.6°F warmer than the 1981-2010 average, said Thoman.
The Prudhoe Bay field recorded the highest production declines. Dan Stickel, chief economist for the Alaska Department of Revenue told the committee that the area is particularly sensitive to temperature changes.
And Utqiagvik, also known as Barrow, recorded December-January temperatures 13.5°F warmer than the 1981-2010 average.
Cathy Foerster, member of the Alaska Oil and Gas Conservation Commission said cold conditions have long been better for North Slope production.
“The facilities up there are designed to operate at their maximum when it’s cold,” she told Reuters. Foerster added that Arctic Alaska oil production is highest in the coldest months and lowest in summer.
Foerster added that natural gas facilities are also temperature-sensitive. Natural gas is cycled through the oil fields to enhance oil recovery.
Officials believe North Slope oil production will recover in the coming three months, and bring up the fiscal 2018 average to 521,000 b/d.
The semi-annual forecast from state officials also predicts an average output of 526,000 b/d. Officials believe production will gradually drop to 493,000 b/d by fiscal 2027.
Fisher told lawmakers that this decline is an improvement over past predictions which called for a much more sharp decline in North Slope output.
North Slope output peaked in 1988 at over 2 million b/d.
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