18 billionth barrel of oil flows down TAPs

By  | 

ANCHORAGE (KTUU) - On Friday, the trans-Alaska pipeline pumped its 18 billionth barrel down the pipeline from Prudhoe Bay to Valdez.

The Trans-Alaska pipeline and pump station north of Fairbanks is shown in this undated file photo. The 800-mile Trans-Alaska pipeline carries Alaska North Slope crude oil from Prudhoe Bay south to Valdez. President Clinton signed a bill in November lifting the ban on export of North Slope oil. (AP Photo\Al Grillo)

The announcement was made on Monday afternoon by Alyeska Pipeline, the company that operates TAPs. $145 billion in revenue has been raised for the State of Alaska from North Slope crude oil, the company said.

The milestone was reached as the Department of Revenue released its fall revenue forecast, showing falling projections for production.

“New fields offer tremendous potential to increase production later in the 2020s but these developments are still contingent on final investment decisions and commitment of billions of dollars of new investments on the part of oil and gas producers,” Acting Revenue Commissioner Michael Barnhill wrote to the governor on Friday.

It has been five years since the 17 billionth barrel flowed down the pipeline.

An oil tax initiative has been approved that aims to raise taxes on legacy fields, advocates say it could help to bridge the state's billion dollar-plus deficit. Some in the oil industry say higher taxes could have the potential to kill future investment.

Channel 2's Maria Downey spoke with Oil and Gas Forecaster, Larry Persily, about what the future of oil looks like in Alaska.

You can watch that full interview above.

Copyright 2019 KTUU. All Rights Reserved.