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Petroleum industry

Prudhoe Bay Oil Field Transforms into Giant Gas Resource

Strategic Insights

— 1 min read

The Prudhoe Bay oil field, once considered the largest oil discovery in North America, has undergone a significant transformation over the past 20 years. Now, it has become a major natural gas field that also produces associated oil and natural gas liquids (NGLs). The field, discovered in 1967, initially contained an estimated 9.6 billion barrels of recoverable oil and NGLs, which later increased to 13.2 billion barrels with the implementation of improved recovery technologies.

Key Takeaways:

  • The Prudhoe Bay oil field has transformed into a natural gas field with approximately 26 trillion cubic feet (Tcf) of natural gas reserves, equivalent to 6.3 billion barrels of oil equivalent (boe).
  • The field produces 6.8 billion cubic feet per day (Bcfd) of natural gas, surpassing oil production, with a capacity to process up to 9 Bcfd after the installation of a new gas processing facility.
  • The new "miscible injectant expansion" project, expected to be completed this year, will add 20,000 barrels per day (b/d) of oil and NGLs production at a cost of $160 million.
  • The field's operation is limited by the capacity of the gas handling facilities and cold weather conditions, which affect the efficiency of cryogenic equipment used in the gas plant.
  • Sometime between 2005 and 2007, the amount of gas produced will exceed the volume needed for pressure maintenance, requiring a new application, such as liquefied natural gas (LNG), Fischer-Tropsch gas conversion, or a pipeline to the Lower 48 states.
  • Arco, BP, and Exxon are actively seeking a solution to utilize the surplus gas, with Arco favoring LNG and BP and Exxon preferring Fischer-Tropsch gas conversion.

Statistics:

  • The Prudhoe Bay oil field currently produces 650,000 b/d of crude oil.
  • The central gas facility processes approximately 6.8 Bcfd of natural gas.
  • The new "miscible injectant expansion" project is expected to add 20,000 b/d of oil and NGLs production.
  • The Prudhoe Bay plant has a maximum capacity of 8.4 Bcfd and a normal operating capacity of 7.5 Bcfd.
  • The field's natural gas reserves stand at approximately 26 Tcf.
  • The estimated recoverable oil and NGLs in the Prudhoe Bay field are 13.2 billion barrels.

Sources:

  • "Prudhoe Bay Oil Field Shifts to New Role as Big Gas Resource" by Barbara Shook, [no publication date mentioned]

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