Down the Energy Ladder 101
Daniel J. Lavigne
Prudhoe Bay owners start new heavy oil production
http://www.planetark.org/dailynewsstory.cfm/newsid/22145/story.htm
ANCHORAGE - BP's BP.L Alaska unit, BP Exploration (Alaska) Inc., said Friday
it and the other
Prudhoe Bay owner companies have begun production of heavy oil from the Orion
satellite field.
The deposit, estimated at 200 million barrels, lies immediately west of the
main Prudhoe Bay
field. It was discovered in 2001, and delineation drilling has been conducted
since then.
But its oil is viscous, posing technological and economic challenges, said BP
spokesman Daren
Beaudo in an interview.
"These are challenging conditions and challenging reservoirs to try to produce
from," Beaudo
said.
The field's first well began producing in April of 2002, and a second well
started producing
in July, he said. The owners plan another two wells this year, he said. As of
July, the field
had produced 275,000 barrels. The oil is being processed though Prudhoe Bay facilities.
If Orion proves successful, that could lead to more development of the North Slope's
substantial heavy oil reserves to offset declines from maturing fields, BP's
Alaska chief said
in a news release.
"Provided we have fiscal stability and we continue working with our
contractors and suppliers
to effectively manage costs, I am confident that Alaska can attract the
investment to exploit
these viscous oil resources," BP Alaska President Steve Marshall said.
Beaudo said there is not yet a firm prediction for daily production rates.
"This viscous oil is still going through a learning process," he said. "We're
trying to
develop wells that will produce 1,000 barrels a day or more as a first year
average. That will
be a challenge."
Along with BP, Orion other major owners are Exxon Mobil XOM.N and
ConocoPhillips COP.N Chevron
CVX.N and Forest Oil own minor shares.
REUTERS NEWS SERVICE
................................
Lynn Dohner
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