ConocoPhillips cuts Alaska oil production
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ConocoPhillips, Alaska’s largest oil producer announced Thursday it will cut production by 100,000 barrels in June due to low prices caused by the COVID-19 pandemic.
ConocoPhillips, Alaska’s largest oil producer announced Thursday it will cut production by 100,000 barrels in June.
It said it is embarking on the move due to low prices caused by the COVID-19 pandemic.
The figure represents about half its oil production in Alaska.
“The ramp-down to reduce production will begin in late May and is part of broader curtailments in the Lower 48 and other areas,” ConocoPhillips said in a statement.
The action follows a temporary cut of about 50,000 barrels of oil daily to North Slope production in Alaska.
This was implemented by Alyeska Pipeline Service Co. last week.
The pipeline operator, owned by ConocoPhillips, BP and ExxonMobil, said the decision was prompted by a forecast for May of an oversupply of oil.
The price of oil in Alaska had plunged from more than $70 a barrel to $10.63 on Wednesday, amid the historic collapse in demand caused by the COVID-19 driven global slump.
Alaska oil production was reduced from over 500,000 barrels of oil daily to 463,000 on Tuesday.--Anchorage Daily News
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