On Wednesday morning, temperatures in the North Slope hub community of Utqiaġvik reached 20 degrees below zero, a record low for April 29.
ConocoPhillips says it will cut oil production in Alaska by about 100,000 barrels per day for the month of June. That’s about half of Conoco’s daily production in the state, and roughly a fifth of the crude that typically flows down the trans-Alaska pipeline.
Four oilfield service companies have alerted the state of sweeping layoffs at their North Slope operations as the coronavirus crushes demand for fuel, oil prices crash and drilling activity declines.
In a statement late Sunday, BP confirmed its commitment to close the multi-billion dollar sale.
The company that runs the trans-Alaska pipeline announced a 10% cut to North Slope oil production Friday, amid a global oversupply of crude caused by the COVID-19 pandemic.
While crude prices have continued to plummet in recent weeks, and oil companies have announced spending cuts, Monday’s price meltdown for the Lower 48 benchmark was particularly staggering.
The North Slope Borough is backing out of a tentative deal to rent RavnAir Group’s Utqiaġvik hangar and is reasserting its right to use Ravn’s assets to support air service to its communities during the coronavirus emergency.
This cut announcement is on top of a $200 million reduction the oil giant announced last month.
Economists at the state’s Department of Revenue were working to identify what drove the price down and what they could expect going forward.
As oil prices crater, banks are hesitant to finance the $5.6 billion deal, according to the Wall Street Journal.