Alaska’s beleaguered oil industry has finally found a lifeline. A small but very successful energy exploration company, Caelus Energy LLC, announced its discovery of a new oil field on Alaska’s North Slope.
What does the company say about its latest discovery?
The field is located in Smith Bay, an area 30 miles north of the Arctic Circle near Alaska’s northernmost city, Barrow. Caelus claims the field holds 6 billion barrels of oil and when combined with an adjacent field could contain more than 10 billion barrels. It expects to be able to recover about 30-40% of that oil.
This is very, very good news for a State whose economic basis is in the energy segment, and particularly in oil prices.
With a $4 billion budget shortfall this year, the moribund State legislature has been arguing amongst itself for months, reinforcing their clear inability to agree on anything including the time of day.
If you lined up all our legislators end-to-end, they'd point in all directions. Or, to borrow a line from Meredith Wilson's The Music Man:
And we're so by God stubborn
We can stand touchin' noses
For a week at a time
And never see eye to eye
But the discovery of more oil is good thing, and bodes well for Alaska.