Alaska Science Forum
April 1, 1985
Alaska's Black Gold
Article #709
by Larry Gedney
This article is provided as a public service by the Geophysical
Institute, University of Alaska Fairbanks, in cooperation with the
UAF research community. Larry Gedney is a seismologist at the
Institute.
I came across some statistics from the petroleum
industry the other day in the quarterly publication Exxon USA
that would make interesting material for an Alaska trivia game. For
instance, did you know:
- In states such as Kansas and Indiana, where
wells are shallow and conditions uncomplicated, wells can be
drilled for about $30 a foot (which, incidentally, is about the
same as drilling a 6-inch-diameter water well in the Alaskan
interior). In Alaska, however, drilling costs for an oil well can
run as high as $900 a foot.
- The Department of Energy identifies 27,543 oil
fields in the United States. Of these, 220 are classified as giant
fields. The giants, numbering less than 1 percent of the total
number of fields, account for 61 percent of the U.S.
production.
- Of the giant fields, only three rank as
"super-giants." Two of these, Prudhoe Bay and Kuparuk, are in
Alaska. The other is in Texas. Together, these three fields
provided the nation with more than 20 percent of its domestically
produced oil in 1983.
- Even under ideal conditions, the cost of
offshore operations can easily run up to 10 times more than those
of onshore operations. In Alaska, the cost runs so much higher
still that an offshore field which would be regarded as a giant
elsewhere might be classified as noncommercial in the Beaufort
Sea.
- As might be expected, Alaska lost out to Texas
as the number one oil producer in the U.S. during 1983. The top
five producers in order were: Texas, Alaska, Louisiana, California
and Oklahoma. What might not be expected is that Alaska didn't
even rank among the top five in the number of new wells drilled.
Although Alaska's rank is not given, the top six in order were:
Texas, Oklahoma, Kansas, Ohio, Louisiana and
Pennsylvania.
To put the matter in perspective and partially
answer the question of why the U.S. is forced to import foreign oil
at all, consider that during 1983, Americans consumed the energy
equivalent (in all forms) of nearly 13 billion barrels of oil.
Domestically, we produced 3.2 billion barrels of oil, and that just
wasn't enough.
Actually, oil per se accounted for only 42.6
percent of our energy requirements, but it was still the largest
single source by a wide margin. Natural gas was next with 24.7
percent, followed by coal with 22.5 percent, hydroelectric power with
5.5 percent, and nuclear power with 4.5 percent ("other," including
wind, solar, wood and geothermal amounted to just 0.2
percent).
About a third of the oil we used in 1983 came from
outside the U.S. Our feeding suppliers were, in order: Mexico,
Canada, Venezuela, United Kingdom, Indonesia, Saudi Arabia and
Nigeria.
I seem to recall from my high school days that we
were the world's leading exporter of oil. What happened?