Alaska Governor Bill Walker pledged his support to the oil industry after the state’s reserves were boosted 80% overnight.
Houston-based Caelus confirmed a discovery of six billion barrels under Arctic waters. The find could produce up to 200,000 barrels a day.
Governor Walker said: “With an oil pipeline that is three-quarters empty, this is good news for the state of Alaska. I applaud Caelus for this major discovery, and for the company’s commitment to do business in our state. My administration will continue to work with the industry to identify new development opportunities in Alaska’s oil and gas sector, and provide appropriate investment incentives given our current fiscal climate.”
Alaska’s daily production has dwindled from its peak of two million barrels in 1988 to 483,000 barrels per day.
Prior to Caelus’ discovery it had a proved reserves totaling 2.86 billion barrels.
“This discovery could be really exciting for the state of Alaska,” Caelus chief executive officer Jim Musselman said in the statement.
“It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades.”