Jennifer.Hoffman@legis.state.ak.us Phone: 907-269-0250

1. The Future of Oil Development in Alaska
Alaska State Senator Lesil McGuire

2. A brief history of oil development in Alaska.
 1889 First exploration wells are drilled at Oil Bay in the Cook Inlet.
 1911 The first commercial development of oil occurs at the Katalla field.
 1957 Richfield Oil Company discovers oil at the Swanson River.
 1968 Prudhoe Bay, the largest oil field in North America is discovered on the
North Slope of Alaska.
 1970 Cook Inlet Production peaks at 225,000 barrels per day.
 1971 Congress passes the Alaska Native Claims Settlement Act (ANCSA).
 1973 Vice-President Agnew casts the tie breaking vote authorizing
construction of the Trans-Alaska Pipeline.
 1984 Mukluk, the most expensive dry hole in American history, is abandoned
in the Beaufort Sea.
 1988 Production from Alaska’s North Slope peaks at 2.1 million bpd.
 1989 The Exxon Valdez runs aground on Bligh Reef in Prince William Sound.
 2005 The 15 billionth barrel passes through the Trans-Alaska Pipeline.
 2008 Federal OCS lease sale in the Chukchi sea breaks records at $2.6 billion.

3. Infrastructure + Workforce + Reserves =
Alaska’s Advantage.
 Current Production 647,000
bpd.
 13,000 direct jobs.
 Estimated Reserves:
 30 billion barrels of
conventional crude oil
(includes OCS).
 20 billion barrels of heavy oil.
 132 trillion cubic feet of
conventional natural gas.
 590 trillion cubic feet of
methane hydrates.

5. “Active” Leases in the Federal OCS

6. Exploration in the OCS isn’t new.

7. Logistics + Permitting + Stakeholders =
Alaska’s Challenges
 High operating costs.
 Federal moratoria.
 Endangered species.
 Diverse interest
groups.
 Litigation.
 Permitting delays.

8. A Promising Future…………….or?
North Slope Oil Production North Slope Oil Production
Without OCS Development. With OCS Development.

9. State Policy Initiatives
 Exploration and development incentives.
 Production Tax credits that can be monetized
immediately.
 Between 20%-40% of expenditures.
 Alaska Gasline Inducement Act (AGIA)
 $500 million in State funds for licensed project sponsor
(TransCanada & Exxon).
 Northern Waters Task Force (AK Legislature)
 Stakeholder engagement.

10. Contact Information
Senator Lesil McGuire
716 W. 4th Avenue, Suite 430
Anchorage, Alaska 99501
Senator_Lesil_McGuire@legis.state.ak.us
Phone: 907-269-0250 Fax: 907-269-0249