Oil Firms Plan Major Search in Alaska Fields

Major new oil exploration and development is planned in Alaska for the first time since world oil prices plummeted, executives of six major oil companies announced at a weekend industry forum.

The companies cautiously unveiled plans for America’s last oil frontier, an indication that the industry is no longer in retreat. The plans are modest by past standards, but significant because they signal a new start for the industry in this oil state that produces 24% of America’s crude.

“There are glimmers, now, of better times to come,” said E. John P. Browne, chief executive of Standard Oil Co. of Cleveland.

He said the “theme for this meeting--Turnaround--should be right on target,” an opinion shared by other oil company officials.

Browne said Standard planned to spend $350 million to launch development of both the Niakuk oil field a mile off the north coast of Alaska and the Eileen West End, the last undeveloped acreage at Prudhoe Bay, America’s largest oil field.

Ben Odom, senior vice president for Arco Alaska operations, said he was “a little nervous” about the future but announced that Arco will soon drill its first Alaska wildcat exploratory wells since 1985. He said Arco will spend $300 million this year to develop Alaska oil fields.

Conoco’s oil development on the Arctic coast at Milne Point field--shut down as unprofitable when oil prices plummeted--will start up again in a $34-million drilling and expansion program, said Tom Painter, division manager.

Tenneco and nine partners already have started a $55 million search for oil from an oil drilling ship anchored in the Beaufort Sea six miles off northeast Alaska, said Dan Johnson, senior vice president at the Houston company.

Chevron’s Tom Cook said his company was devastated by the oil plunge but oil exploration and development “must proceed” on extensive acreage the company already has obtained and on additional acreage Chevron hopes to win in upcoming Arctic lease sales.

All the oil executives called on Congress to lease the coastal plain of the Arctic National Wildlife Refuge, calling the protected chunk of northeast Alaska tundra the best prospect in the United States for future oil discoveries.