Alliance Link Magazine, March 2026 - Meet Alaska

The Alliance’s very own quarterly publication with news about Alaska’s natural resources, projects, politics, industry updates, and association information. Please contact us if you are interested in joining our mailing list for a physical copy.

THE LINK The Official Magazine of the Alaska Support Industry Alliance

ALASKA LNG TAKING SHAPE GLENFARNE LEADING THE WAY

NORTH SLOPE MOMENTUM WHAT’S IN STORE FOR OIL?

TRIBUTE TO BILL WEBB A LASTING ALASKAN LEGACY

ALASKA’S POTENTIAL FUELED BY COLLABORATION

SPRING 2026 | www.AlaskaAlliance.com

THE EXPERTISE AND VERSATILITY TO MOVE PROJECTS FORWARD

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Message From Skeet Black, Board of Directors President Powered by Possibility: Alaska’s Moment to Lead

A lliance Members and Friends: “Powered by Possi- bility” is more than a theme for Meet Alaska this year — it is a reflection of where our state stands at this very moment. Alaska is facing a defining op - portunity, one that has the po - tential to reshape our economic future and strengthen our role in America’s energy landscape. Of course I’m referring to the Alaska natural gas pipeline project. For decades, Alaskans have understood the promise of re - sponsibly developing our vast natural resources. The gas pipeline represents not only an energy project, but an econom - ic strategy. In the near term, it would generate construction activity, create high-quality jobs and stimulate local economies along its route. Over the long term, it offers the potential for sustained reve - nue, lower in-state energy costs and expanded opportunities for diversified industrial develop - ment. Affordable and reliable ener - gy is foundational to economic growth. For rural communities

Large-scale infrastructure ini - tiatives naturally invite debate, and they should. Responsible development requires rigorous environmental review, thought - ful planning and meaningful engagement with stakeholders. Those conversations are essen - tial. What matters most is that they remain grounded in facts, long-term vision and a shared commitment to Alaska’s pros - perity. At its core, the gas pipeline is about positioning Alaska for the next generation. Lower energy costs can diversify our economy. Expanded revenues can support essential public services. Strate - gic investment today can create opportunity for decades to come. Alaska has never lacked po - tential. What has always set us apart is the willingness to think boldly and act decisively when opportunity presents itself. This is one of those moments. If we approach it with unity, discipline and a focus on long- term outcomes, we can secure not only energy stability, but economic resilience for our chil - dren and grandchildren. That is what it means to be Powered by Possibility.

Alaska’s Oil and Gas Consultants

in particular, the prospect of stable, well-paying employment closer to home is transforma - tive. The ability for families to live and work in their regions — without relocating to urban centers — strengthens the social and economic fabric of our state. Beyond Alaska, the project also contributes to broader na - tional energy security at a time when domestic supply and geo - political stability are increasing - ly intertwined. Alaska has long been a strategic energy asset for the United States. Advancing this project reinforces that role.

Geoscience Engineering Operations Project Management

3601 C Street, Suite 1424 Anchorage, Alaska 99503

See the members of the Alaska Support Industry Alliance board on Page 54.

www.petroak.com info@petroak.com

907.272.1232

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

FEATURES

Page 14 Webb’s contributions won’t be forgotten Bill Webb left an indelible mark across the state and helped pave the way for The Alliance to continue its vital role in supporting the future of Alaska. Page 22 Pikka project’s impact will be monumental Santos says first oil is on the way soon at Pikka, with production gradually reaching its expected 80,000 barrels per day peak by summer. Page 30 Glenfarne Group proves its prowess Glenfarne, the state’s partner in the Alaska LNG Project, has shown the ability to bring projects and companies together across the globe. Page 32 Economic trends show a year of expansion For Alaska’s trade and industry leaders, 2026 is less about whether growth will occur — and more about how prepared we are to capture it.

ON THE COVER Alaska’s mining industry has never been stronger with new projects currently in the spotlight and legacy mines continuing to innovate and build on their success. See more on Page 32.

ON THIS PAGE Building the Trans Alaska Pipeline System was a monumental undertaking that has helped the lives of multiple generations of Alaskans. See more about the legacy of TAPS on Page 36.

Photo: Coeur Alaska Kensington Mine

Photo: Alyeska Pipeline Service Company

THE LINK is published in partnership with the Alaska Support Industry Alliance by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. We actively seek contributions from Alliance members and the oil and gas, and mining industry. For advertising information and story inquiries, email Lee.Leschper@FireweedStrategies.com.

Our magazine is mailed at no charge throughout Alaska to those interested in resource development and a healthy Alaska economy. To subscribe, email Admin@FireweedStrategies.com.

Publisher: Lee Leschper | Editor: Tim Bradner | Production, Design: Will Leschper Contributing Photographer: Judy Patrick

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

Going ‘Beneath the Surface’ Message From CEO Rebecca Logan

A lliance Members and Friends: For 47 years, Meet Alaska has been the signature event for the Alliance, bringing together industry leaders, elect - ed officials, Alliance members and Alaskans to listen, learn and discuss the industries, and issues, that impact Alaska’s economic future Today, we’re excited to intro - duce a new way to continue the conversations that bring us to - gether each year. We’re launch - ing a podcast called “Beneath the Surface: Clear Conversations About Alaska’s Economic Future.” This podcast will take a deep - er look at the issues shaping Alaska’s economy — from ener - gy and mining to infrastructure, workforce and policy. Through thoughtful interviews and can - did discussions with leaders, experts and industry voices, Beneath the Surface will explore the opportunities and challenges that lie ahead for our state. Our goal is simple: to create a space for informed, respectful

Alaska’s industries never goes away. Our state’s future depends on a broad understanding of the role that resource development, infrastructure and investment play in our economy and our communities. What does change over time are the venues and methods for those conversations. From com - munity meetings to conferences like this one — and now to new digital platforms — we contin - ue to find ways to reach people where they are. That’s our hope for “Beneath the Surface: Clear Conversations About Alaska’s Economic Future.” Through this podcast, we aim to elevate the discussion, extend these conversations beyond this room and keep sharing the per - spectives and information that help Alaskans better understand the opportunities ahead. I hope you enjoy the day today.

conversations that help Alaskans better understand the decisions and developments influencing our economic future. We hope you’ll listen, share it with your colleagues and join us as we dig a little deeper into the issues that matter most to Alaska. One thing remains clear: the need to have open conversations and to educate people about

Unlocking More Oil and Jobs on State Lands At Santos, we are proud to develop the world-class Pikka Project on Alaska’s State Lands - creating more revenue and more jobs for Alaskans. Pikka is unlocking 400 million barrels of Alaska’s oil. It has already created thousands of construction jobs and will provide hundreds of permanent jobs. This is just the beginning. By July, 80,000 barrels per day will be added to the Trans Alaska Pipeline System. Santos is building the future of energy in Alaska.

Respectfully Rebecca Logan, CEO

Connect with The Alliance We work proactively to keep our members informed and connected via online platforms and events. Watch for our updates through email and social media. LinkedIn: www.linkedin.com/in/the-alliance-4939251b Facebook: www.facebook.com/alaskaalliance X (formerly Twitter): x.com/AKAlliance And if you’re not receiving our updates, email info@alaskaalliance.org . Stay up to date on our website at AlaskaAlliance.com .

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

M eet Alaska 2026 will showcase Alaska’s competitive advantages in oil, gas and mining — from infrastructure to innovation. A state and an industry “Powered by Possibility.” Key tracks will focus on:

n Alaska’s Next Chapter: Energy, Minerals and Momentum

n Mining Alaska’s Potential: Critical Minerals for a New Economy n Future of the Slope: Redevelopment, New Discoveries & Investment n Infrastructure that Builds Alaska: TAPS, Ports & the Next 50 Years n Cold Climate, Hot Demand: Is Alaska Built for the AI & Data Center Boom? n What Comes Next for Alaska? A Conversation with Gubernatorial Candidates

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

www.AlaskaAlliance.com

Hats off to our annual Industry Partners!

A big thank you to our Pipeline Sponsor!

And trade show vendors!

n AK Biz n AK CNG n Alaska Air n Alaska Industrial Hardware n Alaska Laborers Union n Alaska Response Corporation n All Pro Alaska n ASRC Energy Services n Beacon Occupational Health and Safety n Black Gold Express n Colville Inc. n Denali Industrial Supply

n Equipment Source Inc. n Fairweather n Fountainhead Hotels n Fox Energy Services, Inc. n Hawk LLC n ICE Services n IMV n Kakivik Asset Management n Koniag Energy n Lynden Inc. n Minn-AK Transport n New Horizons Telecom n North Star Energy Services

n Northern Industrial Training n Nortech Inc.

n Northrim Bank n Pape Kenworth n Petroleum Equipment Services, Inc. n Petroleum News n Resource Data Inc. n Sourdough Express n Stratus Services n UMV LLC n US Ecology n Velocity

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

www.AlaskaAlliance.com

Unconventional ideas led to innovative success

In Memoriam: Bill Webb made Alaska better

more than 30 years,” Craig said. “We went to Lucky Wishbone every Friday for lunch.” Following his work in the energy sector, Bill devoted himself to com- munity-focused projects in the An- chorage area. He was instrumental in developing the Anchorage Market and Festival (Saturday Market), growing it from 100 booths to more than 320. He also directed the three-day Bear Paw Festival in Eagle River and produced the Anchorage Arts & Crafts Empori- um, Holiday Food and Gift Show, and Christmas Village Show. In addition, Bill managed the pop- ular Made in Alaska program for 10 years. Two years ago, Bill received a Lifetime Achievement Award from the Alaska Support Industry Alliance, where he was named Director Emeri- tus. The honor included a special Leg- islative Citation from the 33rd Alaska State Legislature. Bill was a member of the Resource Development Council, Society of Pe- troleum Engineers, Arctic Power, Visit Anchorage and the Anchorage Cham- ber of Commerce. He also served as a founding board member of Charter College. “He lived life boldly and fully,” said Craig, “and he was never afraid of a new challenge.” “Bill was upfront and honest about his death,” Mathis said. “I don’t think he had any regrets. I’m blessed that he was part of my life, and I will miss him dearly.” Bill is survived by Barbara, his wife of 55 years; his grandnephew, Michael Ingerson; nieces and a nephew; and several grandnieces and great-grand- nieces. He was preceded in death by his parents; his brother, Ellis Webb; and his sisters, Janie Birkholz and Mary Garland. A memorial service for Bill was held in February in Anchorage.

William F. “Bill” Webb, 83, passed away on Jan. 24, 2026, at Providence Hospital following a long illness. Bill was born on October 17, 1942, in Kansas City, Mo., to Ellis and Jane (Backus) Webb. Growing up in Kan- sas City, he demonstrated early the industrious spirit and leadership that would define his life. Even be - fore earning his first paycheck, Bill achieved the rank of Eagle Scout. At age 16, Bill began working as a busboy at the Hillcrest Country Club in Kansas City. Through dedication and ability, he quickly rose to assis- tant manager of the 1,000-member club. This experience laid the founda- tion for a lifelong career in food ser- vice and hospitality-one that would eventually lead him to Alaska. In 1975, Bill and his wife, Barbara, accepted an assignment with Grey- hound Food Management support- ing construction of the Trans Alaska Pipeline System. Asked years later why he stayed in Alaska for the next five decades, Bill answered simply, “It was home.” After first settling in Fairbanks, the couple moved to Anchorage in 1977. During pipeline construction, Bill found his calling in the “oil patch,” managing housing and food services for hundreds of employees on oil rigs, offshore platforms, and remote camps throughout Alaska and California. In the 1970s, Bill hired Joe Mathis to manage a pipeline camp, and later brought him on to work on an off - shore rig in the Beaufort Sea. The two remained close friends for more than 50 years. “He was not bashful. He didn’t shy away from being forthcoming,” Mathis said. “But everything was about mak- ing Alaska better.” In 1978, Bill founded Arctic Hosts, a company specializing in remote-site support services, including food ser- vice, security, housekeeping and other

EDITOR’S NOTE: This story was originally published in 2024 in The Link Magazine. The Alaska Support Industry Alli - ance turns 47 this year after decades of advocacy on behalf of its members. What the organization does most effectively is sending a message to Alaska’s elected officials that the state’s oil and gas industry is more than large companies, and that it includes hundreds of mostly local - ly-owned medium-sized and small companies who employ thousands of Alaskans. They are constituents of the politicians. Oil and gas are important to Alaska. Production from the North Slope has provided billions of dollars of royalty and tax revenue to the state, making possible a huge array of public ser - vices with no statewide broad-based tax as well as the annual Permanent Fund Dividend, a direct annual pay - ment that is particularly important to low-income Alaskans. In Cook Inlet, where the Alaskan industry began in 1957, the continued operation of offshore oil platforms and the onshore and offshore gas fields provides the energy for space heating and electrical generation, as well as the state’s main supply of gasoline and jet fuel that supports a growing air cargo industry at Anchor - age’s airport. None of this can be taken for granted, however. Almost as soon as Alaska’s oil was discovered in the 1950s and 1960s, out-of-state groups with special in - terests arrived and began working to throttle the economic engine driving the state’s growth, oil and gas. Closing off the state’s oil revenue and oil activity would slow the econo -

sury. Alaska citizens are affected when the industry hits headwinds, but the connection is indirect and not often well understood or recognized. The Alliance reminds elected of - ficials that they have an Alaska con - stituency affected directly when bad things happen. The Alliance gives a voice to workers in them, the service companies and support companies. It took a while for this to happen, however. The Alliance had not yet been formed but its major activity — advocacy — came out in full force at the 1979 joint federal-state lease sale on the slope. This was a com - bined offering, the first of its kind, of prospective undeveloped acreage offshore where the large oil finds had been made onshore. It was also the first time that op - position groups had organized to op - pose an expansion of exploration and development, particularly offshore where the operating conditions were difficult. The lease sales survived the initial lawsuits against the state and federal governments, but the opponents were also focused on urging the agencies to put stipulations, or conditions, on new leases that would make them dif - ficult to develop. Larger Alaska companies, particu - larly ARCO Alaska, were worried that an outpouring of opposition at public hearings held by the agencies might lead to those stipulations being at - tached, particularly if only a handful of large companies based out of state were speaking in favor of the sale. This is where the state’s nascent contractor and service community was called on to help. ARCO asked some of those service

essential operations. The company supported projects across Alaska, including specialized “cat trains” used for seismic exploration in the Arctic. One of Bill’s most meaningful roles was with the Alaska Support Industry Alliance. As general manager, Bill over- saw legislative advocacy in Juneau, membership development, and the planning of conferences and meetings. “One time in Juneau, the Alliance made bologna sandwiches for all the legislators,” recalled Mathis. “That’s because a bunch of bologna was what was coming out of the Capitol.” “Bill was politically savvy,” said longtime friend Paul Craig, “but he never lowered his ethics to get his way.” Craig met Bill while developing Trading Bay Energy. “We were trying to do the impossi- ble-build an independent oil and gas company in Alaska,” Craig said. “Bill of- fered to work on the project for a year in exchange for sweat equity.” Although Trading Bay was ultimate- ly sold, the friendship endured. “We’ve been very close friends for

my and the migration of working-age people to Alaska. Without the pros - pect of good jobs, over time people would leave. Eventually Alaska would essentially become a vast park with beautiful land, but few jobs that pay family wages, the kind needed to re - tain young people. It is this dire future that the Al - liance works to avoid by reminding government leaders that their actions affect thousands of ordinary working Alaskans. This is important because in Alaska the oil and gas industry lacks the kind of natural constituency that it has in most other states. In those places the industry produces mostly on private lands. Farmers and ranchers who are land and royalty owners are quick to mobilize when their producers are threatened. This isn’t the case in Alaska. Here the state owns the land where most oil and gas production take place. Royalties are paid to the state trea -

CONTINUED on PAGE 16

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

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CONTINUED from PAGE 14

Webb pulled off a brilliant stroke at the first Meet Alaska. He assigned seats. This put a service company manager sitting next to his or her customer for the day-long event, which included lunch. It was a perfect way to break the ice and open a dialogue. The assigned seating lasted for just a couple of Meet Alaskas, until it was deemed no longer necessary. By then people knew each other, which was the point, he said.

Jan. 24, 2024

Bay Environmental Alliance, showing his commitment to environmental / stewardship and sustainable / development. Barbara Webb, standing side by side with her husband, was an integral part of this journey. Barbara was the best partner Bill could have asked for and they made a formidable team. “Bill’s leadership in the groundbreaking back project of scrap metal from Prudhoe Bay not only led to significant environmental remediation, but also fortified the financial future of the alliance. “Bill and Barbara’s creative and sometimes unconventional approaches, including handing out bologna sandwiches to legislators in the Capital and organizing the Alliance’s first “Fly-In” to Juneau, left an indelible mark on the Alliance and its Legislative engagement. “The members of the Thirty-Third Alaska State Legislature extend their gratitude and appreciation to Bill and Barbara Webb for their lifetime of remarkable achievements, exceptional service, and enduring commitment to Alaska; theirs is a legacy that will inspire generations to come.” Cathy Tilton, Speaker of The House Gary Stevens, President of The Senate Rep. Tom McKay, Sponsor

companies and contractors to show up at the hearings to show that ordinary Alaskans were affected. What resulted was an outpouring of employees in the service industry who filled the hearing room, recalls Joe Mathis, who was there. It was the beginning of the Alliance. The idea of forming an organization was not yet born but the potency of public advocacy by medium-sized and small Alaska companies and their em - ployees was vividly demonstrated. In 1979, there was ample motiva - tion for service companies and con - tractors. The Trans Alaska Pipeline System had been completed two years earlier. The pipeline workers who had fueled a mid-1970s construction boom had left the state. An economic reces - sion was underway. Large new dis - coveries on the slope, like the Kuparuk River field, were still in the future. Alaska business and labor leaders were deeply worried about the indus - try’s future. It was at this point that the idea of forming the Alliance jelled, to continue the effort. The out-of- state organizations whose goal was making Alaska a park hadn’t left, the seeds of future controversies over leasing in what was to be the Arctic National Wildlife Refuge and the Na - tional Petroleum Reserve–Alaska were already being sown. The person who played a central role in making the Alliance happen was Bill Webb, who came to Alaska in 1975 to work on the pipeline and who stayed, with his wife, Barbara, to make the state their home. Webb worried about the post-pipe - line economic slump in the state and what he and others in the contractor community could do to help. It seemed obvious that continuing the expressions of support by ordinary Alaskans was very important. Mean - while, there was another problem that was concerning the Alaskan service companies. Mathis, who had worked with Webb and others in organizing the 1979 event, recalled that by the ear - ly 1980s the major oil producers were beginning to award contracts to out-

“The members of the 33rd Alaska State Legisalture proudly honor Bill and/Barbara Webb for outstanding dedication, leadership, and being pillars of the Alaska Support Industry alliance. Since arriving in in Alaska in 1975, they have served this great state. “Bill’s significant role with Greyhound Support Services Inc, overseeing nine construction camps on the Trans Alaska Pipeline, laid a solid foundation for a legacy of infrastructural excelling in Alaka. Bill’s entrepreneurial spirit and innovation foresight were further demonstrated through the founding of Arctic Hosts, showcasing his business acumen and commitment to Alaska’s prosperity. As a board member of the Alliance in 1982 and its president in 1985, Bill was pivotal in steering the organization to new heights, making it a player in Alaska’s support industry. “During Bill’s presidency, the Alliance saw the inception of Meet Alaska, an annual hallmark event and The Link, a communications magazine, both of which have become cornerstones of the alliance’s community involvement and industry dialogue. Bill’s tenure as CEO/General Manager from 1986 to 1993 was marked by initiatives, notably the formation of the Prudhoe

by The Alliance under Webb’s leadership was the forming of the Prudhoe Bay En - vironmental Alliance and groundbreak - ing “backhaul” project of scrap metal and junk from Prudhoe Bay which led to significant environmental remediation, but also strengthened finances for the Alliance from the sales of the scrap. The cleanup of scrap and junk was mainly around the state-owned Dead - horse airport industrial area, which is outside the oil field operating areas. In the producing fields the operator kept things tidy. The presence of the junk around Deadhorse was typically the first thing visitors saw of the North Slope on dis - embarking from passenger flights and it left an impression, usually negative. This was an important time for the industry because Congress was gear - ing up for a vote on opening the Arctic National Wildlife Refuge. Opponents to ANWR leasing quickly obtained photos of Deadhorse and its junk, which be - came an embarrassment for industry. The Alliance decided to do something about it. And they did. The environmental activities ex - panded beyond scrap to include collec - tion and disposal of hazardous materi - als, including paint. Having helped found the Alliance and spending 25 years with it, and still restless with entrepreneurial en - ergy, Webb went on to develop a new career developing the popular weekly Anchorage Downtown Market. That, in turn, inspired Alaska farmers and others to organize week - ly farmer’s markets in several parts of Anchorage. Farmers’ markets are well known elsewhere but had not been done to scale in Anchorage. Webb showed how it could be done.

ka is always held in the spring — and to allow government leaders to talk about policies and new initiatives. Just those were enough to draw people to the event. But there was more, although it was a subtle strategy. One of the early goals was to find ways for Alliance members to meet producing company managers person - ally and get to know them. It worked in reverse, too. Industry managers needed to know their contractors and service companies better. In this, Webb pulled off a brilliant stroke at the first Meet Alaska. He assigned seats, Mathis recalled. This put a service company manager sit - ting next to his or her customer for the day-long event, which included lunch. It was a perfect way to break the ice and open a dialogue. The assigned seating lasted for just a couple of Meet Alaskas, until it was deemed no longer necessary. By then people knew each other, which was the point, he said. Over the years Meet Alaska has be- come such a significant event that it is a “must do” for the senior political lead - ers, including the state’s congressional delegation and governor. Webb became known for innovative and sometimes unconventional approaches, includ - ing handing out baloney sandwiches to legislators at the capital and orga - nizing the Alliance’s first “Fly In” to Juneau where Alliance members could walk the halls and make their presence felt in the state capitol building. The baloney sandwiches were a kind of joke, Webb explained, a way of poking fun at legislators at their un - fulfilled promises were baloney. “Some (legislators) took it in good spirit, some didn’t,” Webb recalled. One other notable accomplishment

in pipeline construction with Grey - hound Corp, and then Support Services Inc. where he oversaw nine construc - tion camps on the pipeline and at one point as many as 18 camps including those in the oilfields. “He laid a solid foundation for a leg - acy of infrastructural excellence in our state,” according to a citation intro - duced in the Alaska State Legislature by state Rep. Tom McKay, R-Anchorage. Post-pipeline, he went on to form his own camp services company, Arctic Hosts, “showcasing his business acu - men and commitment to Alaska’s eco - nomic prosperity,” the citation read. Webb was also experienced in the contractor community and knew the players. A key decision early on in forming the Alliance is that financial contributions from producing compa - nies are not accepted, although they were offered. “We were concerned that this might taint the new organization. We need - ed to be seen as a completely home- grown and Alaskan,” Mathis said. But it also meant skinny times for The Alliance. There was no office, all of the organization’s records were stored in a cardboard box usually kept at a board member’s home. “During (Webb’s) presidency, the Alliance saw the inception of ‘Meet Alaska’, an annual hallmark event, and ‘The Link’, a communications maga - zine, both of which have become cor - nerstones of the Alliance’s community engagement and industry dialogue,” the legislative citation introduced by Rep. McKay said. Meet Alaska, a tradition that con - tinues today, was far more than just an event at its inception, Mathis said. Officially, the event was designed to allow producing companies to outline their plans for the year — Meet Alas -

of-state companies to cut costs. The fact that Alaska-based service com - panies employed Alaskans who could become politically-influential in the state did not occur to them. One of the early goals for the Alli - ance was to show producers that they needed constituents, in this case Alas - kan companies and their employees who shared the pain when govern - ment decisions adversely affected the industry. Meanwhile, a new threat to the in - dustry had emerged. Alaska oil production was rising in the late 1970s along with oil prices. Billions of dollars were flowing into the state treasury. There were state legislators and state officials who be - lieved that the production tax system

in place was not generating a fair share of the benefits. No one agreed on what a fair share should be, however. Thus, started years of controversy over oil and gas tax policy. The pro - ducing companies realized again they needed friends among ordinary Alas - kans, and this time on an ongoing ba - sis not just for one-time events like the 1979 Beaufort Sea lease sale. At this point, a handful of people among the service companies decid - ed to form the Alliance. Bill Webb was a part of this and was the Alliance’s first president as well as serving on its board. Webb is quick to credit others in the initial formation of the Alliance, including Dr. Milton Byrd, Chuck Becker and Joe Mathis. Webb had played a significant role

— Tim Bradner

THE LINK: The Official Magazine of the Alaska Support Industry Alliance | SPRING 2026

www.AlaskaAlliance.com 17

Complete tax overhaul on Legislature’s agenda

better share risks and rewards be- tween the state and producing com - panies. Under a net revenue tax, the state and producing companies would share the burden if oil prices fell. On the flip side, if prices rose, both would benefit. Over the years, an array of produc - tion incentives as tax credits were also introduced into the state tax code, which became complicated over time. One of legislators’ main arguments for significant changes this year is to simplify the tax law so the public can understand it. However, the timing for this is peculiar, with North Slope producers on the cusp of bringing large, new projects into production — substantially increasing North Slope production — after billions of dollars of investments.

ducers on gross rather than net rev - enue. The current tax on net revenue allows field costs such as drilling and new facilities as deductions while a tax on gross revenue does not. The problem this can create, and the jus - tification for the 2006 change to a net revenue tax, is that in periods of lower oil prices, the state’s share of income from production rises sharply and the producers’ share declines to a point that will impede investment. Howev - er, in periods of higher oil prices, the state loses out on gains under a tax on gross revenue that it would capture under a net tax. This imbalance is what convinced former Gov. Frank Murkowski to sup - port the change in 2006. The propos - al for the switch from gross to net revenue came from Department of Revenue economists who felt that a production tax on net revenue would

took the sales tax out of SB 277. More changes are likely and the legislation is likely to be softened from what the Senate Resources Committee pro - posed, but the uncertainty this creates could chill planned new investments. The timing is also awkward with the federal government putting up several million acres of North Slope and Cook Inlet acreage up for lease in March. The Senate Resources Committee went on to make other changes in the governor’s bill such as a proposal to extend the state corporate income tax to oil producers organized as S-Cor - porations, which are now exempt. This mainly affects Hilcorp Energy, a major North Slope producer. Hilcorp will warn that this will reduce invest - ments the company is now making in Cook Inlet natural gas development. The fundamental change, however, is the switch back to taxing oil pro -

Measure could upend oil and gas tax structure For the first time in years, a change in oil and gas taxes is on the Legis - lature’s agenda in Juneau. Gov. Mike Dunleavy included an increase in the state’s minimum production tax on oil as a part of his fiscal reform leg - islation, which also included a state sales tax. But once the Pandora’s box of oil tax is opened, there is the like - lihood that it could become a runaway train with the Legislature adding its own changes. The first sign of this came in the Senate Resources Committee’s version of the governor’s SB 277 which went to the Senate Finance Committee with changes that go far beyond the gov - ernor’s proposal. If it were adopted, this would upend the basic structure of the state’s oil and gas tax struc - ture in place since 2006 when Alaska switched from a gross-revenue pro - duction tax to a net profits-type tax. The proposal also significantly in - creases the tax rate to a 17.6% tax on gross revenue. When combined with the state’s existing 12.5% royalty, also on gross revenue, this would bring the state’s share to 30% of gross value, depending on oil prices. However, it’s unlikely a lot of the SB 277 changes will stick, Senate leaders have said. The Senate Finance Committee will do modeling and bring in consultants, so changes are likely. Meanwhile, the state House has yet to weigh in on this. Its version, HB 284, is in the House Finance Commit - tee, where the focus has been on the state sales tax. The Senate committee

— Tim Bradner

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Photo by Lee Leschper

Alaska is set for a hefty boost in oil moving through the Trans Alaska Pipeline System this year.

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HEX Alaska: Reducing royalty aids gas output

to either import liquefied natural gas to augment declining production from the existing gas fields, or to contract with the proposed Alaska LNG Project for gas from the North Slope. Both of those would reduce the market available for local Cook Inlet producers because for both customers would have to make long-term contract commitments. However, producing companies like HEX say new gas can be devel - oped in the Inlet with more drilling. They point to the track record so far at Kitchen Lights as well as by Hil - corp new gas developed at the Tyonek platform in the North Cook Inlet and the Beluga gas fields, both operated by Hilcorp. If HEX can secure a lon - ger-term royalty reduction at Kitch - en Lights it’s almost a sure bet more drilling will find more gas, the com - pany says.

like now-State Sen. George Rauscher proposed a reduction for all Cook Inlet gas, not just one field, arguing that the public benefit of encouraging energy security for the region, with more gas production, outweighed a relatively minor reduction of state revenues that would occur because of the reduction. The state Division of Oil and Gas has forecast that without new gas produc - tion regional gas production will fall below demand as early as 2030. This is important because natu - ral gas provides the fuel for heating of buildings and most electric power generation across the region, where most of Alaska’s population lives. Pub - lic utilities like Enstar Natural Gas Co., the natural gas distributor, and electric cooperatives like Chugach Electric and Matanuska Electric associations, are legally required to assure their cus - tomers of an adequate energy supply. To do this the utilities are planning

any Cook Inlet production and it had become a serious burden for HEX in securing financing to do more drilling. After an extensive analysis of the economics of Kitchen Lights the DNR concluded that a reduced royalty was justified and granted the reduction from 12.5% to 3%. With that, HEX still paid the 12.5% overriding roy - alty but the combined rate was now 15.5%. That is still high compare with the 12.5% paid by other gas producers but it allowed HEX to secure funds for drilling two more gas wells last year. The wells were successful and in the six months since being broughty on online in fall, 2025, xsadded an addi - tional two billion cubic feet of gas for utilities in Southcentral Alaska and the Marathon Petroleum refinery at Nikiski, near Kenai. Reduced royalties for Cook Inlet gas production have been debated for sev - eral years. Advocates of previous bills

Companys seeks to add jack-up rig, raise production A bill that would extend a reduction of state royalty for the Kitchen Lights Unit in Cook Inlet is moving through the state House. Currently, natural gas is being pro - duced at Kitchen Lights by independent producer HEX Alaska under a tempo - rary administrative royalty reduction granted last year by the state Depart - ment of Natural Resources which al - lowed the company to drill more gas production wells, easing dangers of a potential gas shortage during cold weather earlier this winter. However, a longer-term reduction is needed to allow HEX to make long- term investments in infrastructure, supporting more drilling and more gas development. To do this, Rep. Zack Fields, D-Anchorage, has introduced House Bill 271. After a careful review the Department of Natural Resources granted HEX a temporary reduction of royalty under its administrative au - thority from 12.5% of the produced gas value to 3%. Fields’ bill would extend the state’s reduced royalty of giving HEX the long term fiscal sta - bility needed to raise capital for major investments. Fields’ bill moved out of the House Resources Committee to the Finance Committee on Feb. 25. The limited drilling and support services in Cook Inlet, and the unique market dynamics makes additional development challenging. Currently there is one jack-up in the Inlet that is owned by Hilcorp Energy, and Hil - corp has in the past leased the rig to Furie but they have no obligation to

— Tim Bradner

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Shutterstock Photo The state has forecasted that without new gas production, regional gas production will fall below demand as early as 2030.

the state royalty that is paid to previ - ous owners of Kitchen Lights and oth - er private parties. The DNR approved the creation of those private overrid - ing royalies prior to the Kitchen Lights Unit starting production in 2015. Be - fore the DNR reduced the state royal - ty last year Kitchen Lights was pay - ing a combined 25% royalty, with the 12.5% overriding royalty put on top of the 12.5% state royalty. That was, by far, the highest royalty burden on

do so. A second jack-up rig and more support services available would allow both companies to optimize the drill - ing equipment and services necessary for more oil and gas development. The current temporary royalty arrange - ment does not improve the economics of Kitchen Lights production enough to allow HEX to finance bringing a second jack-up rig to Alaska, however. What impedes HEX is that there is a 12.5% overriding royalty in addition to

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slowed the company’s aggressive ex - pansion and exploration plans. Bal - ash told legislators in the briefings that delineation exploration drilling has started at another discovery a few miles to the south, Quokka, and there are plans for drilling at Horseshoe, another nearby find. “With Quokka and Horseshoe, we have three Pikkas,” or the equiva - lent, Balash said. Pikka has 400 mil - lion barrels of confirmed resources for Phase One and another 500 million barrels of estimated resources that could be added in Phase Two, Lalib - erte said. Balash said Quokka has about 450 million barrels now estimated and is set to be reconfirmed in the explora - tion well now being drilled. The re - source at Horseshoe appears to be smaller, he said, but drilling planned next winter could add reserves.

reservoir pressure maintenance, Lal - iberte said. In the briefings, state and compa - ny officials acknowleged headwinds facing the industry with lower crude oil prices and increases in steel costs. And like all North Slope operators, Santos is dealing with the competition for equipment and skilled labor in a remote location. For example, Cono - coPhillips has another major project underway in the region, the larger Willow development, along with new projects in existing producing fields operated by ConocoPhillips and Hil - corp Energy. Both companies have announced increases in expected capital costs at Willow and Pikka. In its fourth quar - ter briefing for investors in January, Santos CEO Kevin Gallagher said Phase One costs had increased by about $200 million, but that is less than 10% of total Phase One project costs. However, rising costs haven’t

reservoir sections with one well. San - tos has done engineering and per - mitting work for Phase Two of Pikka with intentions to move quickly into the expansion as soon as Phase One began production. State Oil and Gas Director Derek Nottingham told leg - islators in a separate January briefing that Santos will pause the expansion until it ensures Phase One is operating smoothly. When it comes, Phase Two is slat - ed to add another 80,000 barrels per day and increase Pikka’s total output to 160,000 barrels per day. With North Slope production now averaging about 480,000 barrels per day this winter, this will be a significant expansion of crude oil moving through the Trans Alaska Pipeline System. Santos has completed one pro - duction pad, an oil and gas process - ing plant, 25 production wells and a plant built nearby on the Beaufort Sea coast to process seawater to inject for

— Tim Bradner

Photo Courtesy Santos

Santos, Repsol to begin production at Pikka field The Pikka project is slated to add about 80,000 barrels per day to Alaska’s oil output at its peak this summer.

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field is 99% complete and is in the commissioning stage for testing of equipment. The company expects to ramp up production gradually to reach its ex - pected 80,000 barrels per day peak by mid-summer and to remain on a plateau of output for several years, he said. Santos is 51% owner of Pik - ka with a minority partner, Repsol, at 49%. “This winter we are down to com - missioning teams for the various sys - tems. Construction activity is largely down to ‘punchlist’ items,” said Joe

Balash, Alaska External Affairs Vice President for Santos. “We continue to have drilling crews for the Nabors 272 running 24/7 and the Nordic Calista is drilling the Quokka well for us. Num - bers vary as the work changes, but we are currently running less than 1,000 personnel in our camps,” Balash said. Meanwhile, the producing wells being drilled for Pikka continue to perform well in tests. The company’s 23rd production well achieved 8,000 barrels per day in tests, the highest production rate to date at Pikka. The 24th well drilled tapped two

First oil coming in March, with output set to rise quickly Santos will begin production at the new Pikka field in northern Alas - ka in late March, company officials have told Alaska legislators in brief - ings. Pete Laliberte, Santos’s Alaska Business Development Vice Presi - dent, told the resources committees of the state House and Senate the

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ConocoPhillips Alaska continues its expansion

ConocoPhillips reports year-end review

ed in the Kuparuk River Unit, which will include a pad expansion, pipeline installa- tion and a 19-well drilling program. These investments reinforce our long-term com- mitment to Alaska and continue to support economic growth and job creation.” “We have invested more than $3.6 billion in Alaska projects in 2025, demonstrating our confidence in Alaska’s resource base and the value of a stable and competitive fiscal regime.” Since 2007, ConocoPhillips Alaska has

In 2025, ConocoPhillips Alaska incurred an estimated $1.3 billion in taxes and royalties, including $1 billion to the State of Alaska and nearly $300 million to the federal government. ConocoPhillips Alas- ka reported a net income of $730 million for the year. “Progress continues on the Willow project, which will achieve nearly 50% completion during this winter season and remains on track for first oil in early 2029,” said Erec Isaacson, President of

way in its existing fields including Coy - ote, in the Kuparuk River field; CD-8, a new production pad in the Alpine field; and an expansion of the West Sak vis - cous oil production in the Kuparuk field, Romberg told legislators. First oil pro - duction at Coyote is expected in 2027 and 20 wells are planned. At West Sak, seven new wells are planned. The site has been producing viscous oil for sev - eral years, with 110 wells drilled to date. There is also Narwhal, with devel - opment permitting now underway. Narwhal is planned for 25 wells, and although many of these will be extend - ed-reach horizontal wells drilled from existing infrastructure, there is poten - tial for a new drill site to reach reser - voir sections that are difficult to reach with horizontal wells. ConocoPhillips is spending about $1 billion a year, not including Willow, in ongoing develop - ment work in existing fields. Romberg said tax stability in Alas - ka over the last decade has encour - aged the company to keep investing in drilling and development, with the discovery of Willow and the new proj - ects in existing fields resulting from that. Until 2013, Alaska had a diffi - cult state production tax structure that discouraged companies, the result be - ing little new development. That year, the Legislature passed a major reform of the state’s oil tax policy, which has been unchanged since. Texas, a major oil producing state, has kept its state taxes on oil stable since 1951, legislators were told. The “government take” of production rev - enues is the same now as it was in 1951, Romberg said. Projects like Wil - low take years for exploration and de - velopment planning, 25 years in the case of Willow.

Tax stability has spurred new work, company says Work is winding down on Pikka, but things are still going full-bore at ConocoPhillips’ Willow project on fed - eral lands in the National Petroleum Reserve-Alaska (NPR-A) northwest of Pikka, which is on state lands. ConocoPhillips said it is about 50% complete on the Willow project. Con - struction continued this winter with about 3,000 workers on the North Slope, legislators were told in brief - ings by Barry Romberg, the company’s Alaska commercial and midstream vice president, and Colin Wolfe, finance vice president for ConocoPhillips Alas - ka. Willow is being built with three production pads and 180,000 barrels per day of new production at peak when the field begins operating, which is expected in early 2029. Romberg said work on fabrication and delivery of the Willow operations center was completed last year, in the winter of 2024-25, and the Wil - liow production facility fabrication and delivery began last year and will continue through 2028. Pre-drilling of production wells is scheduled to begin in 2027 with work to tie in the wells planned for 2028. During last year’s winter season, 12 modules were deliv - ered for the Willow operations center. ConocoPhillips also opened the Willow construction camp, which will allow year-round activity. More modules are still being fabri - cated on the U.S. Gulf Coast and will be delivered to the North Slope on a planned 2027 sealift. This will be for the Willow Central Facility, its oil and

EREC ISAACSON

incurred approximately $47 billion in taxes and royalties to the State of Alaska and the federal government. Of that amount, about $37 billion went directly to the state. In that same period, ConocoPhillips Alaska’s earnings were approximately $29 billion. — Courtesy ConocoPhillips Alaska

ConocoPhillips Alaska. “More than 2,400 jobs were filled to progress Willow critical scope in 2025, which included the construction of two bridges, installation of 72 miles of pipeline and beginning of year-round Willow camp occupancy. “We also sanctioned our Coyote major project locat-

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Photo Courtesy ConocoPhillips Alaska

gas processing plant. Modules are slated to be assembled there in 2028. Meanwhile, the company is pursu - ing an aggressive winter exploration, even with an $8 billion investment at Willow on its plate. Four explora - tion wells are planned this winter on a large leasehold position the company has in the NPR-A besides its Willow leases, Romberg and Wolfe told legis - lators. If new oil is discovered, which is considered likely, it will feed into the Willow processing facility. Willow is increasingly being con - sidered a hub for new development in the northeast NPR-A. Once complete, the processing plant and pipelines will provide vital infrastructure that has been extended into the federal petro - leum reserve. Meanwhile, ConocoPhillips is busy with a number of new projects under -

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