High capital costs and regulatory hurdles have pushed most oil majors out of Alaska. Still, ConocoPhillips (COP) is planning on a new project that could boost production by 180,000 bpd.
ConocoPhillips is a multinational energy company headquartered in the United States. It is one of the largest independent oil and gas exploration and production companies in the world. ConocoPhillips engages in the exploration, development, production, transportation, and marketing of crude oil, natural gas, natural gas liquids, and other energy-related products. The company's operations span across various countries and regions, including the United States, Canada, Europe, Asia-Pacific, the Middle East, and Africa. ConocoPhillips is also involved in various downstream activities, such as refining, marketing, and chemicals. As a major player in the energy industry, ConocoPhillips operates in both conventional and unconventional resource plays and has a diverse portfolio of assets across different geographies.
ConocoPhillips is Alaska’s largest oil producer and owner of exploration leases, with around 1.6 million net undeveloped acres. The CEO, Ryan Lance, expects U.S. oil production to plateau this decade, a potential boon for the company.
President Biden recently approved the controversial Willow Project in the National Petroleum Reserve-Alaska (NPR-A), allowing three out of ConocoPhillips' five proposed drill sites.
The company says the project could deliver over $17 billion in new revenue for the Federal Government, the state of Alaska, and North Slope Borough communities.
ConocoPhillips' current production output in Alaska is below 200,000 bpd, but its newest bet in Alaska is expected to boost production by almost double that amount.
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On the date of publication, Andy Mukolo did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
