Projected Alaska North Slope oil production at risk beyond 2025 if oil prices drop sharply
Oil production on Alaska's North Slope, which has been declining since 1988, is transported to market through the TransAlaska Pipeline System (TAPS). Because TAPS needs to maintain throughput above a minimum threshold level to remain operational, its projected lifetime depends on continued investment in North Slope oil production that itself depends on future oil prices. In the Annual Energy Outlook 2012 low oil price case, North Slope production would cease and TAPS would be decommissioned, which could occur as early as 2026.
Posted: September 16, 2012