A new Alaskan oil project has been approved for energy giant ConocoPhillips (COP). The project was approved for ConocoPhillips by the Bureau of Land Management and will account for new drilling in the Alaskan National Petroleum Reserve.
The effort, called the Willow MDP Project, is projected to potentially produce over 160,000 barrels of oil per day, according to the Bureau of Land Management’s assessment. However, there is also an estimated potential for a maximum of 200,000 barrels per day being produced with the project. Over the 30-year lifespan of the Willow MDP Project, an estimated 590 million barrels of oil could potentially be generated.
With the project, there is an approved maximum of up to five drill sites, as well as pipeline construction to federal leases and the building of needed gravel roads to support the project.
The newly-approved ConocoPhillips oil project is expected to help offset some of the economic damage that’s been done through the decline of North Slope oil field production. Through the Willow MDP Project, 400 jobs are expected to be filled for operational roles, and there are 1,000 jobs expected to be filled during construction of the project. According to the Bureau of Land Management’s Alaskan State Director, Chad Padgett, the new ConocoPhillips deal is also expected to provide much-needed revenue for the state, as well as provide a much faster system into the Trans Alaska Pipeline System.
ConocoPhillips has had a rough year in 2020, with shares dropping by 37%. At the close of market on Friday, ConocoPhillips stock was up 0.47% to $40.82.
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