EIA: Alaska crude oil production will grow in 2026 for the first time since 2017.
The U.S. Energy Information Administration forecast on Wednesday that Alaska's crude oil production would increase in 2026. This is the first time since 2017. If realized, it will be the largest production since 2002.
In its report on the Short-Term Energy Outlook for 2025, the agency forecasts that Alaska's crude oil production will rise "16,000 barrels a day (bbl/d), to 438,000 bbl/d in 2026 after remaining relatively flat during 2025."
The EIA stated in a report that "Two new developments in Alaska are expected to increase crude oil production after decades of declines."
The 29 wells of the ConocoPhillips owned Nuna project are expected to produce combined 20,000 barrels per day (b/d) at its peak. Meanwhile, Santos and Repsol who jointly own the Pikka Project plan to produce up to 80,000 barrels per day from 45 wells at the project’s peak.
According to reports from the companies, by December 2024 22% of wells for Nuna and Pikka had been drilled. The companies plan to drill 58 additional wells by 2028. This would support a relatively high level of rig activity. The agency reported.
The EIA forecasts "annual crude production in Alaska will average 422,000 bbl/d by 2025. This is an increase of 1,000 bbl/d compared to the five-year average decline of 9,000bbl/d." (Reporting by Ishaan Arora in Bengaluru; Editing by Leslie Adler)
(source: Reuters)
