A large concentration of light-oil has been discovered in the North Slope region of Alaska by privately owned exploration and oil production company Caelus Energy LLC. The Dallas-based company announced its findings on Oct. 4, saying that the discovery will be a stronghold for the oil industry in Alaska.
The discovery was made in the Smith Bay via Caelus’ subsidiary. The company said in a statement that the total amount of oil discovered will amount to 6 billion barrels, with a possible total of 10 billion barrels of oil being located within the Smith Bay complex. The company believes it will be able to extract 30-40% of the trapped resource.
This finding in the Smith Bay is expected to produce around 200,000 barrels per day – a fortunate resource for the economy of Alaska, which has been in a lull due to the oil crisis. More than half of the state’s revenue comes from the oil industry, so this discovery by Caelus could turn things around for the state whenever the extraction and transportation of the oil begins.
“This discovery could be really exciting for the State of Alaska. It has the size and scale to play a meaningful role in sustaining the Alaskan oil business over the next three or four decades,” Caelus CEO Jim Musselman said.
The state has been pushing for exploration by offering incentives, such as tax credits, to companies interested in exploring Alaskan territory. Musselman claimed that the company’s success is due to these programs.
“Without the state tax credit programs, none of this would’ve happened, and I’m not sure Caelus would’ve come to explore in Alaska,” he said. “We’re proof that the credit programs work.”