ConocoPhillips Manages To Take Out Crude Oil From Fields In Alaska
ConocoPhillips is not giving up just because it's products prices lowered. It is the first company to take out crude oil from Alaska.
ConocoPhillips is not getting demotivated from the very low prices of its products and has managed to be first oil and Gas Company to step its foot into the rich crude oil fields of Alaska. The oil has been attained from the National Petroleum Reserve-Alaska, which is the size of Indiana.
ConocoPhillips started the project of taking out crude oil from the fields in October, which will give the oil company almost 16,000 barrels of oil each day when the production begins in Alaska’s Arctic region. This is not a win-win situation for everyone; the environmentalists are not so happy with this recent development. They are showing their concern over this matter.
The oil and gas company announced its plans for this project and start a second one in the area keeping aside the fact that the oil and gas prices are crumbling down each day, which has forced many companies in the same market to pull back from expensive drilling project while sticking to whatever they have for now. However, the same cannot be said for Conoco according to the evidence and its actions.
The manager of the company’s Alpine operations, Steve Thatcher, informs that such projects taking place at this time can prove to be beneficial for the business for the times when the prices rise. The oil prices in the United States have gone down by 70% since 2014 in June from $105 per barrel to $35 per barrel now. This has played a very negative role on its business in the oil industry and has completely removed the chances of profit such businesses can attain now.
Even the oil giant was reported to face a loss from $3.5 billion in its fourth quarter in 2015 to $39 million a year before according to the organizations report on February. It has even lowered the capital expenditure target of this year from $7.7 billion to $6.4 billion.
ConocoPhillips had been seeking for permits to conduct its drilling project in Alaska for a very long time and managed to achieve them. The crude oil that is being drilled out now is from the surface land that belongs to Kuukpik Corporation, which is a Native village in Alaska. The company has further plans to keep drilling in the Greater Mooses Tooth while ignoring the low oil prices. The product generated from this project will be seen in 2018, December and could be 30,000 barrels per day at the peak of its production.