Largest Oil Discovery in 30 Years
A Spanish oil giant Repsol has discovered a massive oil reserve of about 1.2 billion barrels, making a name in history as the largest onshore discovery in the United States in 30 years.
The discovery was confirmed after Repsol drilled two test wells during the 2016-2017 winter season.
The incredible discovery was found near the village of Nuiqsut in North Slope which was first considered an aging oil basin.
Repsol projected that production will start as soon as 2021 with expected production of 120,000 barrels of recoverable light crude.
The discovery was a collaborative effort between Repsol with its partner, privately-held US partner Denver-based Armstrong Energy. The oil companies began exploration in North Slope in 2008.
Repsol is also operating in the Gulf of Mexico.
The oil resources lie in a well, called Horseshoe which is largely owned by Denver-based Armstrong. The discovery is located 20 miles south of where the two companies have already found oil in a project known as Pikka.
Nobody thought the massive find would be discovered in North Slope which is considered to be a mature oil basin.
Repsol spokesman Kristian Rix told CNNMoney, “The interesting thing about this discovery is the North Slope was previously thought to be on its last legs. But this is a significant emerging find.”
Alaska North Slope is located on the northern slope of the Brooks Range along the coast of the Arctic Ocean.
Big Win for Alaska
The discovery is considered a big win for Alaska, which had a difficult year in 2016. Due to trouble in the oil industry, hiring was halted. Aside from that, oil companies cut state employee travel.
With the prevailing problem in Alaska’s oil companies, the North Slope find is great news for the state.
Happy about the incredible discovery, Alaska Governor Bill Walker said in a statement, “This is also great news for the State of Alaska. We must all pull together to fill an oil pipeline that’s three-quarters empty.”