API urges quick NPR-A leasing

The American Petroleum Institute has urged the Bureau of Land Management to set an early date for lease sales in the northeastern area of the National Petroleum Reserve-Alaska (NPR-A). The Interior Department recently decided to allow renewed leasing in the reserve (OGJ, Aug. 24, 1998, p. 26). A sale is expected next summer. API said expedited leasing would maximize an opportunity to offset the decline in U.S. oil and gas production. It said the oil industry's record on the North Slope

Sept. 14, 1998

2 min read

The American Petroleum Institute has urged the Bureau of Land Management to set an early date for lease sales in the northeastern area of the National Petroleum Reserve-Alaska (NPR-A).

The Interior Department recently decided to allow renewed leasing in the reserve (OGJ, Aug. 24, 1998, p. 26). A sale is expected next summer.

API said expedited leasing would maximize an opportunity to offset the decline in U.S. oil and gas production. It said the oil industry's record on the North Slope proves production can occur while preserving the arctic environment.

API estimated production from discoveries would not come on stream until 8-10 years after a lease sale, so the current low oil prices should not affect BLM decisions.

It told BLM, in comments on the final Integrated Activity Plan/Environmental Impact Statement for the northeastern NPR-A, that U.S. oil consumption is near record levels, while production is at a 40-year low.

API said NPR-A production would help reverse that latter trend while extending the economic life of the 800-mile Trans-Alaska Pipeline System.

Restrictions decried

API complained about some of the restrictions on NPR-A exploration. It said the drilling ban for the Teshekpuk Lake Surface Protection Area limits development of some of the richest potential oil and gas deposits in the area. The industry had recommended that BLM allow exploratory drilling in the buffer zone south of Teshekpuk Lake in the winter, when geese and other birds leave the surrounding wetlands for warmer climates and caribou go to their winter range.

API said the oil industry has demonstrated on Alaska's North Slope that it is possible to preserve the environment and develop oil and gas fields: "New drilling techniques and 3D seismic surveys limit visible signs of the industry's presence. These state-of-the-art technologies will guide development of NPR-A."

It said that, on the North Slope, most pipelines are built 500 ft from roads and elevated at least 5 ft to avoid hindering caribou movements. As a result, the caribou populations have grown in the last 20 years. API said government and industry studies have resulted in operational restrictions that allow development while protecting arctic fish, wildlife, and their habitats.