Alaska Resource Review is the official magazine of the RDC, published four times a year to inform Alaskans and others about the importance of Alaska’s resource industries as well as advocate for issues critical to the success of those industries. Resource Review reaches more than 20,000 readers important to these industries, in print, at RDC events and online via digital, social and email media.
VOLUME 2 | ISSUE 3 | SUMMER 2025
ALASKA RESOURCE REVIEW
CELEBRATING THE RDC PIONEERS Carl Portman reflects on years of service, work with champions for State of Alaska
INSIDE THIS ISSUE n Trump Delivers on Alaska Promises n ANWR, NPR-A in the spotlight n RDC Outreach Trip to Cordova! n Legacy of Partnership in Fisheries
Magazine of the Resource Development Council for Alaska | www.AKRDC.org
VOLUME 2 | ISSUE 3 | SUMMER 2025
"Our founding fathers had a vision and recognized that, regardless of the industry, we all face similar challenges when it comes to ensuring we have the ability to responsibly develop our resources." — Leila Kimbrell, Executive Director, RDC
FAMILY, CONNECTIONS, DOING WHAT IS RIGHT DEFINES RDC
D EAR RDC MEMBERS & SUPPORTERS, This edition reflects on our past and really leans in to celebrating our 50 years of existence. It has been a lot of fun hearing stories and learning more of the history of RDC over the past year as we comb through our archives and reconnect with past members! I especially want to thank all our guest contributors who have highlighted the impact their involvement with RDC has had. There is a secret sauce here and a special magic that makes RDC work. I cannot wait to see what the next 50 years bring us! Our founding fathers had a vision and recognized that, regard- less of the industry, we all face similar challenges when it comes to ensuring we have the ability to responsibly develop our resources. Our advocacy for fair regulatory policy and stable tax regimes over the years has allowed our industries to ride the highs and lows that come with any economy. As RDC has enhanced its federal outreach over the past few years, we have earned accolades for the way we bring our different industries together to
“tag along” to numerous civic, cham- ber and assembly meetings. I did not have a choice then (no babysitter!) but in hindsight, it was a great experience that I would not trade in. You get to see firsthand just how much people care for their local communities and engage their time to ensure their success. It was awesome to have a “willing participant,” if you will, wanting to hang out with a bunch of old folks for three days in Cor- dova! (Anna — you are a rock star and we cannot wait to see where your love for Alaska and your career takes you!) Looking ahead, we are in full plan- ning mode for our fall conference. Be sure to mark your calendars for Nov. 12-13, 2025, and check our website for updates. Can’t wait to see you all there! Yours resourcefully, Leila Kimbrell, Executive Director
advocate for the common good. Yet, I think us Alaskans just look at this is what we do. I often feel like I sound like a broken record, but we truly could not do this without your contin- ued support of our mission and vision for a strong Alaska. And now, on to the next 50 years! Here at RDC, we are one big family and I am excited to preview and point you to an interview later in this edition with board member Jim Hill and his high school daughter, Anna, who recently joined us in our annual board member outreach trip in Cordova. Not only was it incredible to have a member of the next generation with us to learn more about Alaska and our regional resources and capabilities, it put me down memory road of my own youth … Growing up, I had to THANK YOU ONCE AGAIN FOR READING AND FOR YOUR SUPPORT. AS ALWAYS, WE WANT TO HEAR YOUR FEEDBACK AND IDEAS. PLEASE SEND THEM IN TO RESOURCES@AKRDC.ORG.
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VOLUME 2 | ISSUE 3 | SUMMER 2025
VOLUME 2 | ISSUE 3 | SUMMER 2025
"To all who have worked for, served, or supported RDC over the past five decades — thank you. And to those just joining the effort — welcome. The future is bright, and together, we will continue to shape it." — Scott Habberstad, President, RDC
PAGE 26 VISIT TO CORDOVA HIGHLIGHTS IMPORTANCE OF COMMUNITY The RDC Board of Directors recently took its annual outreach trip to Cordova, giving our board members a real firsthand look at the glory and challenges of our important Alaskan cities. Thank you to the Cordova community for welcoming us and making us feel right at home! PAGE 30 LOOKING BACK AT THE RDC THROUGH UPS AND DOWNS Carl Portman, who was a mainstay at the RDC for decades, looks back and offers his own personal insight into the challenges — and resounding successes — that the RDC and champions for Alaska have made during all these years. PAGE 38 BUILDING A SOLID FOUNDATION FOR THE FUTURE OF FISHERIES More than 50 years ago, the vision that built Trident Seafoods was shaped by the same driving forces that launched the Resource Development Council, writes Trident CEO Joe Bundrant.
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A LEGACY OF ADVOCACY, A FUTURE OF OPPORTUNITY
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A S THE RESOURCE DEVELOPMENT COUNCIL (RDC) MARKS ITS 50TH ANNIVERSARY, WE CELEBRATE NOT ONLY A HALF-CENTURY OF TIRELESS ADVOCACY FOR ALASKA’S RESOURCE INDUS- TRIES, BUT ALSO A PIVOTAL MOMENT IN OUR STATE’S ECONOMIC FUTURE. From its founding in 1975, RDC has been a unifying voice for responsible development across Alaska’s vast land- scapes championing oil and gas, mining, timber, tourism and fisheries. Today, as we reflect on this legacy, we also look ahead with renewed optimism, thanks in part to the passage of the One Big Beautiful Bill. Signed into law July 4, 2025, this sweeping legislation will certainly be a game-changer for Alaska. Major por- tions of the bill address Alaska’s unique needs, including unlocking long-sought opportunities across the state’s resource sectors. It restores and codifies access to ANWR, NPR-A and Cook Inlet, en- suring regular lease sales and shielding Alaska from future regulatory over-
reach. While public sentiment is divided, the bill also aims to deliver historic tax relief for working families and small businesses, enhance infrastructure and aviation safety, and make the largest investment in the U.S. Coast Guard in history — much of which is focused on Alaska. For RDC and our partners, this moment is a culmination of decades of work — building coalitions, informing policy, and advocating for balanced, sci- ence-based development. This organiza- tion and our partners have long under- stood that Alaska’s prosperity depends on our ability to responsibly access and manage our natural resources. The re- source development portion of the One Big Beautiful Bill opens the door to that vision and gives us the opportunity to realize it. As we look toward the next 50 years, RDC’s role will be more important than ever. The opportunities ahead require the same collaborative, forward-think-
ing approach that has defined RDC since its founding. That is why this year’s RDC Annual Convention on Nov. 12–13 in Anchorage, promises to be one of the most important gather- ings in our history. We will reflect on the milestones that brought us here — and chart the course for the next 50 years. From critical minerals to carbon markets, from energy indepen- dence to Arctic infrastructure, the con- versations we have this fall will shape Alaska’s future. As we celebrate RDC’s golden anni- versary, we do so with gratitude for the past and excitement for what lies ahead. To all who have worked for, served, or supported RDC over the past five decades — thank you. And to those just joining the effort — welcome. The future is bright, and together, we will continue to shape it. Thank you, Scott Habberstad, RDC President
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ALASKA RESOURCE REVIEW is published in partnership with the Resource Development Council for Alaska, Inc. by Fireweed Strategies LLC, 4849 Potter Crest Circle, Anchorage, AK 99516. For advertising information and story inquiries, email Lee.Leschper@FireweedStrategies.com. ALASKA RESOURCE REVIEW is mailed at no charge throughout Alaska. To subscribe, email Admin@FireweedStrategies.com. Publisher: Lee Leschper | Editor: Tim Bradner | Production, Design: Will Leschper | Contributing Photographer: Judy Patrick PLEASE NOTE: RDC HAS MOVED OFFICES! Please update your records with our new physical and mailing address: 301 W. Northern Lights Blvd., Ste. 406, Anchorage, AK 99503
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ALASKA RESOURCE REVIEW SUMMER 2025
VOLUME 2 | ISSUE 2 | SPRING 2025
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PRESIDENT'S PRIORITIES FOCUS ON ALASKA ENERGY
Committed to Alaska for more than 50 years. We measure success not only by what we do but how we do it. Our team is dedicated to the safe and responsible development of oil, ensuring a healthy economy for future generations of Alaskans.
Trump delivering on promise to unleash energy development BY TIM BRADNER PRESIDENT DONALD TRUMP PROMISED TO UNLEASH A NEW ERA OF ENERGY DEVELOP- MENT IN ALASKA, AND SO FAR HE’S ON THE ROAD TO DELIVERING ON THAT. The federal budget reconciliation bill passed by Congress and now signed by the President, called his “Big Beautiful Bill,” puts into law many of Trump’s priorities for Alaska. HERE ARE SOME HIGHLIGHTS: n New lease sales are mandated on federal lands in the Arctic National Wild- life Refuge, or ANWR; the National Petro- leum Reserve-Alaska, or NPR-A, and in Outer Continental Shelf waters of Lower Cook Inlet. n Former Interior Secretary Deb Haaland’s restrictive rules and expanded no-drilling areas in the NPR-A are re- versed, reinstating prior land management rules in effect for years and returning the 23-million-acre NPR-A to its original pur- pose as a petroleum reserve. n A repeal of the national forest “roadless rule,” which blocked road con- struction in the large Tongass National Forest in Southeast Alaska and hindered timber harvesting and community devel- opment. The roadless repeal will help in efforts to breathe new life into the small state’s forest industry but there are other problems in timber land management in the Tongass that now need attention. A REVAMP OF NEPA One of the most consequential sections of the new law is a major restructuring of the National Environmental Protection Act, or NEPA, that allows project sponsors to secure an expedited schedule for envi-
ate was a section requiring Congress to approve most major federal regulations before they went into effect. REVOKING OLD PUBLIC LAND ORDERS There were other important changes in the final law that favor Alaska’s resource industries, however. An important one re- vokes an old federal Public Land Order, or PLO, that blocked the state of Alaska from selecting lands for its statehood land enti- tlement in a corridor from the North Slope to Interior Alaska. This is parallel and near the right-of- way for the Trans-Alaska Pipeline System but is a much wider area that includes lands prospective for mineral discoveries. Also, changes were made in other old Public Land Orders, mainly in Interior Alaska, that incudes lifting of restrictions on mining exploration. This will open up several million acres for exploration. The state and Alaska’s congressional delegation have worked for years to get old Public Land Orders lifted, many which date from the 1970s. Those efforts were fiercely opposed by conservation groups. The new federal law revokes the orders. DOWNSIDES IN NEW LAW There are, of course, some down- sides for Alaska in the new law. One is the changes in Medicaid rules that while aimed at lowering costs on a national level will result on losses of Medicaid eligibility for Alaskans with modest incomes. This will reduce business for health care pro- viders in the state including many offering primary care as well as community hos- pital who are already operating with slim margins. The loss of access to health care will put burdens on hospital emergency rooms who by law cannot deny care. Hospitals’ uncom- pensated care costs are typically passed on to other patients mainly under private em- ployer health plans. This will drive up the cost of health care for private employers.
ronmental reviews with the payment of a fee. The expedited schedule would include a one-year timeline for completion of an Environmental Impact Statement, or EIS, for federal permits for projects. There is also a 180-day timeline for the more streamlined Environmental Assessment, or EA, done for some projects. This is an important change because previously some EIS documents were taking years to complete. The new law sets the fee at 125 percent of the estimated cost of the EIS or EA if it is prepared by a federal agency or if the en- vironmental reviews are done by the proj- ect developer, 125 percent of the agency’s estimated cost to supervise preparation of the EIS or EA. This section, criticized by conservation groups as “pay to play,” was toned down in the U.S. Senate from the version of the budget bill that passed the U.S. House. The House-passed bill included limitations on court challenges to EIS or EA documents. One other provision modified in the Sen- President Donald Trump is hoping to fast-track future energy development across the country with a focus on Alaska.
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ALASKA RESOURCE REVIEW SUMMER 2025
VOLUME 2 | ISSUE 3 | SUMMER 2025
IS THERE OIL IN ANWR? ALASKA WILL SOON KNOW
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Future development will continue to be at the forefront of politics BY TIM BRADNER ALASKANS HAVE WONDERED FOR DECADES WHETHER THERE IS REALLY OIL IN THE COASTAL PLAIN OF THE ALASKA NATIONAL WILDLIFE REF- UGE, COMMONLY CALLED ANWR. For decades, ANWR has been a politi- cal football. As the big North Slope oil dis- coveries were developed, geologists started looking for where the next big finds could be made. East of Prudhoe Bay the geology looked prospective. Rock outcrops the ANWR hinted at reservoir-type rocks below. There were oil seeps, indicating an active petro- leum-generating system. Surface rocks were so oil-saturated that one geologic field party set an oil-stained boulder alight to help cook dinner. Companies were interested. The feder- ally owned lands weren’t open but adjacent Alaska Native lands were available. BP and Chevron made a deal with Arctic Slope Regional Corp. to drill a test well south- east of Kaktovik, the Inupiat community at ANWR’s northern border. Things looked promising, but politics intervened. Conservation groups had been interested for years in putting a large part of northern Alaska into protected status and in 1960 they persuaded President Dwight Ei- senhower, as he was leaving office, to admin- istratively create the Arctic National Wildlife Range as protected federal land unit. Designation of ANWR as a formal wild- life refuge, which requires congressional approval, came in 1980 with passage of the Alaska National Interest Lands and Con- servation Act, or ANILCA, which created a number of new national parks and refuges including ANWR. The new refuge totaled 19.2 million acres.
development finance agency. With support from Gov. Mike Dunleavy, AIDEA bid on and won leases in the lease sale. This was an unusual, and gutsy strategy done mainly as a hedge against no leases being bid on and the federal government retaining con- trol, not a good outcome with President Joe Biden, who strongly opposed ANWR ex- ploration, coming into office. As it turned out, AIDEA’s gamble paid off. The two small companies bidding win- ning leases gave those back to the govern- ment. AIDEA hung in there and applied for permits to do seismic exploration, which Deb Haaland, Biden’s Interior Secretary, rejected. Haaland then went on to cancel AIDEA’s leases. The state authority filed a lawsuit, citing dubious legal grounds for the cancellation. AIDEA won its suit in early 2025 when U.S. District Court Judge Sharon Gleason inval- idated Haaland’s cancellation of the leases. Meanwhile, the Interior Department held the second leases sale required under the jobs and tax act but Haaland offered only minimal acreage and loaded the offering with restrictions so that there were no bids. President Trump has restored AIDEA’s leases and the authority is now busy plan- ning exploration. AIDEA has said it doesn’t intend to hang on to the leases but will do preliminary exploration and bring in private companies to be partners in development. Basically, this is a “farm-out” arrangement typical in private sector, where companies holding leases bring in others as developers. Will commercial oil deposits be found? Only drilling will tell. Geologists have more confidence in the western part of the coast- al plain that is near state of Alaska lands where oil and gas discoveries have been made. Another advantage is the infrastruc- ture built 60 miles east from Prudhoe Bay to the Point Thomson gas and condensate field, which is now producing. The Point Thomson pipeline has spare capacity, which will help in the development of any oil found in ANWR.
At the time, there was a big push by con- servation groups to also designate the new refuge as wilderness, the most restrictive form of federal protection. Eight million acres of ANWR did get a wilderness desig- nation but Alaska’s congressional delegation, then led by Sen. Ted Stevens, succeeded in carving off an enclave in the refuge’s north- ern coastal plain, keeping it out of wilder- ness because of its oil and gas potential. The 1980 law also required the Interior Department to assess petroleum prospects in the ANWR’s 1.5 million-acre coastal plain, which came to be called the “1002 area” after the section of ANILCA that set it aside for further study of its potential. The department dragged its feet on this through successive presidents but eventually was persuaded to let industry do preliminary exploration with a “group shoot” paid for by companies sharing the data. The govern- ment also received the data and helped it fulfill the requirement under ANILCA. The group shoot done with “2D” seis- mic, the best available at the time, and it indicated the presence of several under- ground geologic structures that could be big oilfields if they held oil. Only drilling could show that, however, and conservation groups fought hard in Congress against the required federal authorization for drilling. For years, the issue seesawed in Con- gress. At one point Congress approved ANWR exploration only to have President Bill Clinton veto it. It was only when Trump was elected in 2016 that Alaska’s congres- sional delegation, in an initiative led by Sen. Lisa Murkowski, secured permission for ANWR lease sales and drilling in the tax and jobs act passed in 2019. The act actual- ly required Interior to hold the sales, so the agency had no discretion. Under President Trump, the first lease sale was held but continued controversy over drilling in a wildlife refuge led to just a few bids from two small companies and the Alaska Industrial Development and Export Authority, or AIDEA, the state of Alaska’s
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AFTER OVER A CENTURY, VISION FOR NPR-A CLEAR
NPR-A comes into its own as an energy reserve for the nation BY TIM BRADNER FOR ALASKANS INTERESTED IN RESOURCE DEVELOPMENT, LITTLE HAS BEEN SO IRKSOME AS FORMER INTERIOR SECRETARY DEB HAA- LAND’S ACTION TO SHARPLY EXPAND PROTECT- ED AREAS IN THE NATIONAL PETROLEUM RE- SERVE-ALASKA, OR NPR-A. This included a provision for “pop-up” protected areas where the U.S. Bureau of Land Management could expand protected areas and create new ones every five years. That’s all gone now, or soon will be. President Trump’s “Big Beautiful” budget reconciliation bill, now in law with the pres- ident’s signature, restores the land manage- ment rules in place in 2020, before Presi- dent Joe Biden took office and Haaland was appointed. As in ANWR, the President’s bill also increased the royalty share to the state of Alaska from 50% to 70% but that happens in 2034. The NPR-A is a large 23-million-acre federal enclave on the western North Slope set aside in 1923 for its oil potential by Pres- ident Warren Harding. While no oil depos- its were known at the time federal geolo- gists surveying the area thought there was potential and recommended that Harding establish it as an oil reserve for the U.S. Navy. This was just after World War I when it had became apparent to the world’s navies that oil would become a major source of fuel for warships. However, in recent years, conservation groups have pushed for the NPR-A to be managed more like a wildlife reserve, and in these ideas were receptive for Interior Secretaries under Democratic presidents including Haaland, under President Joe Biden, and Sally Jewell, under President Barack Obama.
Photo Courtesy ConocoPhillips Alaska
Secretary Sally Jewell, were contrary to the original purpose of the NPR-A when it was created in 1923. This was restated by Congress in 1976 when the reserve was transferred from the U.S. Navy to the Interior Department, to be managed by the BLM. The purpose of the petroleum reserve both in 1923 and 1976 was petroleum development.
When he was in Alaska this summer, new Interior Secretary Doug Burgum is- sued an order rescinding Haaland’s restric- tive regulations for the NPR-A including the moving protected areas. Burgum’s order required a 60-day public comment period that expired Aug. 4. Following that, the new Secretary can make rescinding Haaland’s rules official. What was irritating to Alaskans with Haaland’s actions, and those by former
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northern part of the reserve, now renamed Utqiagvik, but like Umiat’s oil it was not a commercial-scale find. The gas was devel- oped, however, to provide energy for the nearby Naval Arctic Research Laboratory and a U.S. Air Force DEWline radar site. Eventually gas was supplied to the local In- upiat community. The Barrow gas field still supplies gas to Utqiagvik. But the government’s bad luck with drilling continued into the 1970s when the U.S. Geological Survey took over man- agement of exploration. It was only in the 1980s, when President Ronald Reagan de- cided to open the NPR-A to leasing by pri- vate companies, that modern technology and more efficient private management of exploration came to be used. Bad luck continued, however. ARCO Alaska drilled a costly dry hole south of Barrow. BP drilled unsuccessfully in the re- gion’s east-central region. Other companies tried their luck, like Total, a major compa- ny based in France, all unsuccessful. It was BP’s final exploration effort in Alaska, in fact. There was also an effort by Link Ener- gy, a small independent, to further explore the Navy’s early oil find at Umiat. Link was unsuccessful in finding enough oil at Umiat to merit development, but the company’s innovations helped the overall effort. One innovation was a long 99-mile snow road built by Link to Umiat from the Dalton Highway, a record distance, that demonstrated the use of snow compact- ing in areas where water was scarce for ice roads then commonly built for winter ex- ploration. These were expensive failures that dis- couraged industry. Success came finally when ConocoPhillips, with Anadarko Pe- troleum as a partner, developed the Alpine field in 1990 on state lands near the Colville River. After Alpine was built and produc- ing, the two companies began looking west across the Colville River at adjacent federal lands in the NPR-A. Exploration technology had advanced by then. A string of medium-sized discov- eries were made in what came to be known as CD-5, GMT-1 and GMT-2, which would be uneconomic on their own but could be developed because they could be reached by roads and pipelines from the Alpine field. Most significant, on-site oil process- ing plants were not needed at the three smaller projects because the raw crude oil could be transported to Alpine’s field plants
When he was in Alaska this summer, new In- terior Secretary Doug Burgum issued an order rescinding Haaland’s restrictive regulations for the NPR-A including the moving protected areas. Burgum’s order required a 60-day public comment period that expired Aug. 4. Follow- ing that, the new Secretary can make rescind- ing Haaland’s rules official.
for processing. Then Willow was found as Cono- coPhillips explored further west. By then, Anadarko had meanwhile sold its interest in the NPR-A leases, as well as Alpine, to ConocoPhillips. Willow is much larger than GMT-1 and GMT-2 but, more impor- tantly, it is too far from Alpine for the un- processed raw crude oil to be economically transported. A standalone processing plant
at Willow was needed. It is being built. And just as the Alpine field facilities enabled smaller finds nearby to be devel- oped, discoveries near Willow will become economic because of the proximity of the facilities at Willow. President Harding’s vision of the NPR-A as adding strategic energy reserves for the nation, not just the Navy, is becoming true. It has taken 100 years, however.
Photo Courtesy ConocoPhillips Alaska
lips’s Willow project but restrictive rules by the federal government made it difficult for explorers to adequately test them or to build pipelines if the finds were developed. Talisman Energy subsidiary FEX want- ed to do tests of its onshore finds made in 2005 and 2006 and Caelus Energy desired further tests of a potentially important offshore discovery at nearby Smith Bay in 2015. Caelus had found oil in shallow offshore waters on state-owned submerged land leases, but the federal government’s restric- tions in the NPR-A restricted access for the company for a pipeline corridor east to the Alpine field. The work by Caelus and FEX, and more recently ConocoPhillips in areas where Willow is being developed, confirmed that substantial oil deposits can be found in the petroleum reserve. The views haven’t al- ways been positive about NPR-A, however.
For years, even decades, the region was a kind of graveyard for exploration. No oil searches were made from 1923 until after World War II, which demonstrated the U.S. Navy’s need for secure oil supplies even more dramatically. The Navy itself managed exploration drilling in the 1950s with a U.S. Seabee battalion with Arctic experience. However, drilling technology at the time had limited capabilities and the ability to map prospec- tive underground targets was at an early stage. The result were many costly dry holes drilled over several years. There was some limited success, howev- er. A small oil deposit was found at Umiat, at the far southeast part of the reserve near the Colville River and at the boundary with state of Alaska lands. But the Umiat was not big enough for development, however. A small gas field also was found at Barrow, an Inupiat community in the far
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There was, of course, language about land protection, which is what Haaland and Jewell cited when imposing new re- strictions. The language on petroleum’s part took a back seat. It’s unclear just what new Secretary Burgum will do with the new rules but it’s likely the protected areas enlarged by Haa- land will shrink back what they were in 2020. This is important because Haaland’s protected areas covered an expanse of areas south and west of environmentally sensitive areas along the coast that had long been protected by Republican and Democratic presidents alike. What is important is that Haaland put off limits areas of prime prospectivity for oil and gas discoveries, geologists familiar with the region say. Discoveries have been made along the coast northwest of ConocoPhil-
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most of the energy used for space heating in buildings and homes and also most of the energy for electric power generation. The approximate 9 million cubic feet per day from the two new wells and reworked A-2A well works out to about 1.2 billion cubic feet per year in additional gas. In context, about 70 billion cubic feet per year of gas is used by consumers and industries in Southcentral Alaska, accord- ing to studies. Forty billion cubic feet per year of this is used for space heating in buildings. The remaining 30 billion is used in power generation and industrial uses, such as in powering Cook Inlet’s offshore oil platforms and Marathon Petroleum’s re- finery at Nikiski, which supplies jet fuel and most of the state’s gasoline supply. While the drilling success by HEX shows there’s more gas to be found in Cook Inlet some analysts say the 3 million to 3.5 million cubic feet per day rate on the two new wells is modest compared with past rates on new wells, which typically have been much higher. Also, the gap projected between declin- ing production and regional gas demand is worrisome. It grows substantially between
2028 and 2030, and beyond, according to studies by the state Division of Oil and Gas. In a presentation to the Resources Com- mittee of the state House last November, the gap was shown to be 15 billion cubic feet in 2028, growing to 28 billion cubic feet by 2030, according to the division. With demand estimated at 70 billion cubic feet yearly, that’s a big supply deficit, and it will require either imported liquefied natural gas or a lot of new drilling to fill it, and likely both. HEX isn’t the only company drilling, though. Hilcorp Energy is working to add new supply also, mostly around gas fields Hilcorp now produces. Also, BlueC- rest Energy, a small independent, also has a large gas resource at its Cosmopolitan field, which now produces oil. But devel- oping that undeveloped gas will require at least one new gas production platform and new pipelines, requiring a big investment. AIDEA is now in discussions with BlueC- rest on possible financing. Hendrix sees considerable upside and likely more success for its steady pace of added wells from its existing platform, and if its exploration can continue the steady
additions to the Inlet’s supply will at least help dent the coming shortfall. In a symbolic gesture of legacy and local pride, Furie has officially renamed its production platform, formerly the Ju- lius R. Platform to the Allegra Leigh Plat- form, honoring the first granddaughter of HEX CEO John and Candace Hendrix, a fourth-generation Alaskan. About Furie Operating Alaska: Furie is the only 100% Alaskan-owned oil and gas production company in Alaska. Furie and its parent company, HEX Cook Inlet, LLC, are headquartered in Anchorage, Alaska, and are passionate about developing Alas- ka’s resources for Alaskans. Furie operates only in Cook Inlet and only produces natu- ral gas for Alaskans. Furie is committed to responsibly developing Alaska natural gas resources for Alaskans. About AIDEA: Established by the Alas- ka State Legislature in 1967, AIDEA is an independently governed public corporation tasked with promoting the economic welfare of Alaskans. Through flexible financing solu- tions, AIDEA has invested over $3 billion in projects that drive economic development and job creation across the state.
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DISCOVERIES CONTINUE IN NATURAL GAS QUEST
HEX LLC adds finds in Inlet; more needed to stall LNG imports BY TIM BRADNER ALASKA INDEPENDENT HEX LLC IS FINDING MORE NATURAL GAS IN COOK INLET, WHERE SUPPLIES ARE FORECAST TO RUN LOW. THE NEW RESERVES ARE WELCOME, BUT A LOT MORE IS NEEDED. HEX CEO John Hendrix said July 28 that two new wells recently drilled by the compa-
ny at the company’s Kitchen Lights offshore gas field will be capable of producing at 3 million to 3.5 million cubic feet per day. Another well, A-2A that was recently “worked over,” or repaired, has been re- turned to production and is producing at about 3 billion cubic feet per day. That will bring total gas production from the field to 18 million cubic feet per day, a nice addi- tion to Cook Inlet gas supply. The state’s development finance agen- cy, the Alaska Industrial Development and Export Authority, or AIDEA, helped HEX finance its new drilling. “AIDEA continues to support strategic
investments through our direct finance program that responsibly develop Alaska’s natural resources for the benefit of all Alas- kans,” said AIDEA Chief Investment Officer Geoff Johns. “Furie’s progress in Cook Inlet exemplifies the kind of local leadership and energy development that strengthens our economy, supports jobs, and enhances en- ergy security across Southcentral Alaska.” Furie’s success is a powerful reminder that Cook Inlet–produced energy is the best energy to supply Alaskans — clean, lo- cal and reliable, Johns said. Natural gas is important to Southcen- tral Alaska communities because it supplies
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Local production will take three trucks a day off the road, Wilcox said. The methanol production process will also produce hydrogen, which can be used in the plant to upgrade high-sulfur diesel now locally pro- duced from crude oil in “topping plants” on the slope to Ultra-Low Sul- fur Diesel, or USLD, which is now re- quired to be used in vehicles. Alyeschem’s plant will be able to produce 1,500 barrels a day of the USLD, which will take six trucks that now haul the fuel off the Dalton Highway. The combined reduction in trucking amounts to about 4,000 truck trips annually, reducing maintenance needs on the road. Maintenance costs on the highway, a vital road link for producers, have been rising with heavy truck traf- fic supporting new oil activity on the Slope as well as erosion from heavy summer rains. Wilcox said the plant can also be- come a “launchpad” for future produc- tion of other clean fuels and chemicals that can be used to enhance oil produc- tion, such as dimethyl ether, or DME. “This facility is a solution to long-standing logistical challenges for producers. This will allow us to replace fluids needed for production now im- ported to the slope with locally made methanol and ‘clean’ diesel,” Wilcox said. Much of the methanol now used is made outside the U.S., barged several thousand miles to Southcentral Alas- ka, and then trucked 800 miles to the oilfields in northern Alaska, he said. “The North Slope is a world-class energy basin and can be for genera- tions to come, but its future hinges on the ability to lower operating costs, in- crease the resource base, monetize gas and adapt to changing markets. Val- ue-added chemistry is an invaluable tool for addressing all of these chal- lenges,” Wilcox said. The state and North Slope Borough will receive an estimated $5 million yearly in new revenue mainly through property taxes. AIDEA itself will be paid an estimated $2.39 million yearly in loan repayments with some of the construction loan repayments con- verted to a cents-per-gallon royalty.
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Photo Courtesy Alyeschem LLC
PETROCHEMICAL PLANT ON SLOPE UNDERWAY
AIDEA approves $70M in construction funding for Alyeschem LLC BY TIM BRADNER ALASKA-BASED ALYESCHEM LLC HAS CONSTRUCTION UNDERWAY FOR A $130 MIL- LION PETROCHEMICAL PRODUCTION PLANT PLANNED AT PRUDHOE BAY, ON ALASKA’S NORTH SLOPE.
Fabrication of production modules is being done in Texas and on-site construc- tion on the slope is to begin in early 2026, according to company CEO JR Wilcox. Alaska’s state development finance corporation, Alaska Development and Export Authority, approved $70 million in construction financing on July 9. Part- ners in the project besides Alyeschem are McKinley Private Investment, also Alas- ka-based, and BP Energy Partners. The plant will produce methanol and ultra-low sulfur diesel, reducing the need
for oil producers and support contractors to truck these liquids north on the Dal- ton Highway, the state-owned gravel road connecting the North Slope oilfields to Interior Alaska’s highway system. Methanol is used by producing com- panies in freeze-protection of wells and in protection of pipelines from corrosion. Wilcox said the plant is planned to go into operation in late 2027 and will have a capacity to produce 31,500 gallons per day of methanol. Methanol is now trucked to the North Slope from southern Alaska.
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ALASKA RESOURCE REVIEW SUMMER 2025
VOLUME 2 | ISSUE 3 | SUMMER 2025
PROGRESS BEING MADE ON ENERGY RELIABILITY
Southcentral, Interior regions continue to face fuel source uncertainty BY TIM BRADNER THE OUTLOOK FOR ENERGY, ITS AVAILABIL- ITY AND AFFORDABILITY, IS DECIDEDLY MIXED FOR SOUTHCENTRAL AND INTERIOR ALASKA, THE STATE’S MAJOR POPULATION CENTERS. In Southcentral, the pending declines in natural gas production in Cook Inlet have become worrisome for business and com- munity leaders. Imports of liquefied natural gas, or LNG, is the likely solution at least as a “bridge” until a better alternative is found. But importing gas will be expensive and the burden of that will fall heavily on home and building owners in the region who have few alternatives and must heat with gas. Electrical generation also depends on gas but the two large electric cooperatives in the area, Chugach Electric Association and Matanuska Electric Association, have access to alternatives like power from hydro and smaller amounts from wind and solar. In Fairbanks, the Interior Gas Utility (IGU), the community’s natural gas util- ity has diversified its gas supply sources away from Cook Inlet and is now receiving truckloads of LNG from the North Slope where a new Harvest Alaska LNG plant is now operating. Harvest is an affiliate of Hil- corp Energy, which produces the gas. This, in itself, is a notable achievement as first commercial use of the huge “strand- ed” reserves of natural gas from the North Slope, if only on a small scale. LNG to Fairbanks also won’t be cheap given the cost of trucking on the Dalton Highway, but the gas will at least be avail- able, and there’s a lot more where it comes from. Another advantage: The IGU and Hilcorp, the gas producer, can keep prices stable given the large gas resource on the Slope. This is in contrast with LNG im-
A helicopter flies near the site of Dixon Diversion.
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Photos Courtesy Alaska Energy Authority
The Bradley Lake hydroelectric project near Homer is to soon be expanded.
ported into Southcentral Alaska, which will have its price linked to international mar- kets. Before it started receiving LNG from the Slope, IGU trucked liquefied gas up the Parks Highway from a small gas liquefac- tion plant in the Matanuska-Susitna Bor- ough. But with Cook Inlet gas production set to decline, the Fairbanks-area utility decided to switch its source of gas to the North Slope, a wise choice. In Southcentral Alaska, home and busi- ness owners don’t have good choices. They are vulnerable to the Cook Inlet production decline because they depend on gas for
space heating and power generation. For years, the state Division of Oil and Gas in the state Department of Natural Resourc- es has been predicting a decline in annual gas production from Cook Inlet’s aging gas fields. State analysts say the reduction will begin in 2027. Although the division keeps close tabs on the Inlet’s gas wells and regularly up- dates its forecasts, the overall prediction hasn’t changed. In 2028, the shortfall will amount to about 15 billion cubic feet of the approximate 70 billion cubic feet needed.
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ALASKA RESOURCE REVIEW SUMMER 2025
VOLUME 2 | ISSUE 3 | SUMMER 2025
Healy 1 plant built in the 1960s is still per- forming despite its age, but there are oper- ational problems with the larger 50-mega- watt Healy 2 plant because when built in the 1980s it employed new, experimental technologies which have created operat- ing problems. Replacing these plants when they are retired will be expensive. GVEA also generates renewable power at wind turbines at Eva Creek, near Healy, and also purchases wind power from a pri- vate power producer near Delta, and gets a share of Bradley Lake’s low-cost power that is transmitted up the electric intertie from Southcentral Alaska. The co-op is also con- sidering diversifying its renewable energy portfolio from a planned private wind proj- ect at Shovel Creek near Fairbanks. GVEA had a sobering experience with new technologies in the Healy 2 plant, but the cooperative has still embraced innova- tion and new technologies. A large battery powered storage unit, for example, was in- stalled several years ago that gives the co- op the ability to a fast startup in supplying power in the event of a major outage, even in winter.
GVEA is now working with Westing- house on a possible long-duration power storage facility at its North Pole generation plant that would store heat in ceramic ma- terials. Heat converted to power would pro- vide backup energy for an extended period. Chugach Electric and Homer Electric As- sociation also are installing battery storage. While progress is being made on new generation and power storage, improve- ments are needed in long-distance electri- cal transmission systems, which also are aging. These are necessary to efficiently move power to where it is needed along the Southcentral-Interior “railbelt” transmis- sion system. The upgrades are important if power from new projects including Dixon Diver- sion at the Bradley Lake or new wind proj- ects in Southcentral and Interior Alaska are to be efficiently used. Some of the transmission upgrades are now underway, led by the state’s Alaska Energy Authority, or AEA, and the re- gional utilities. State and federal funds are being used although the utilities are also contributing.
Chugach Electric and the AEA are currently rebuilding parts of the Ho- mer-to-Anchorage transmission line on the Kenai Peninsula so it can handle the in- creased power output from Bradley Lake’s Dixon Diversion when completed in 2031. The AEA is separately working on a new submarine power cable across Cook Inlet that will connect existing transmission sys- tems on the Kenai Peninsula to Chugach Electric’s Beluga power station on Cook Inlet’s west side. This also will involve an upgrade to transmission lines north from the Beluga plant to the Matanuska-Susitna Borough and around Knik Arm of Cook Inlet to Anchorage. This new transmission loop will pro- vide more energy security because it will be an alternative way to get Bradley Lake hydro power to Anchorage and Mat-Su communities in the event of a failure in the Kenai Peninsula transmission system. Unexpected events do happen. A few years ago, forest fires on the Kenai Peninsula temporarily disrupted delivery of Bradley Lake power north to Anchorage and the Mat-Su regions.
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Photo Courtesy Golden Valley Electric Association
coPhillips LNG export plant at Nikiski to handle the liquefied gas. Enstar is separately working with Glenfarne, a New York-based energy company, on a plan for a new LNG import terminal to meet its needs, which are larger than the needs for Chugach Elec- tric. Enstar won’t need LNG until 2032, when its contract for Cook Inlet gas with Hilcorp expires. Chugach Electric’s Hilcorp supply contract ends in 2027, however, and it will need to import LNG sooner, and must have its plans in place in 2026. Enstar, the regional gas utility, is most affected by any shortfall because it is re- quired to supply natural gas to its custom- ers. The electric utilities have alternatives such as inexpensive power from the Brad- ley Lake hydroelectric project near Homer, which is to soon be expanded. Chugach also has access to power from the private Fire Island wind project. Solar power is supplied to Matanuska Electric
by a private power producer at a price that matches that of natural gas. Matanuska Electric has also equipped its Eklutna gas- fired power plant to switch to oil as a fuel, if needed. In addition, Chugach is considering a plan to purchase power from a proposed private wind project near Mount Susitna, west of Anchorage. If this moves ahead, Matanuska Electric also could buy power from this project. In Interior Alaska, Golden Valley Electric Association (GVEA), the Fair- banks-based cooperative serving the re- gion, has access to large coal resources at Usibelli Coal Mine near Healy, which al- lows it to generate power at stable, and af- fordable, prices. GVEA also has an oil-fired plant at North Pole that can be used when needed. The challenge for GVEA, however, is that its two lower-cost coal power plants at Healy are aging. The small 25-megawatt
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In 2029, the deficit will be 20 billion cu- bic feet and in 2030 it will be 28 billion cu- bic feet, according to the state’s estimates. If this is correct, there will be a supply deficit of over a third of the regional gas demand by 2030. Some new gas from Cook Inlet is be- coming available with added supply from new wells drilled by HEX, owner of the Kitchen Lights offshore fields as well as Hilcorp, which is drilling new gas wells on the Kenai Peninsula. These are unlikely to offset the deficits, however, so planning is underway now on LNG imports to fill the gaps. Cost estimates aren’t yet available, but they are generally thought to be half again or twice as much as the current cost of Cook Inlet gas. To do the imports, Chugach Electric is working with Harvest Alaska on a plan to convert the mothballed former Cono-
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ALASKA RESOURCE REVIEW SUMMER 2025
VOLUME 2 | ISSUE 3 | SUMMER 2025
WEST SUSITNA ACCESS PROJECT MOVES AHEAD
begin 1.4 miles west of Alexander Creek, in the Matanuska-Susitna Borough, and extend to the Whiskey Bravo airstrip and mineral exploration camp west of Skwentna. That is where NovaMinerals, an Australia-based minerals company, is supporting its exploration of discoveries of gold and antimony. At its east end, the road will connect with a planned state-built highway that will cross the Susitna River on a new bridge to connect with existing Mat-Su roads a few miles further east. The bridge and highway to Alexander Creek will be built with federal funds. The route for AIDEA’s road extending west will traverse the northern side of the Skwentna River before crossing to the southern side, ending at the Whiskey Bravo airstrip. In a statement, AIDEA said the road will provide year-round public access to currently remote state public lands and private lands within the Matanus- ka-Susitna Borough and areas planned for resource development, AIDEA said. Additionally, the road will enhance commercial use of designated critical mineral development areas, promote job growth and sustainable economic bene- fits for the State and Mat-Su. The need for this access road has been identified in various state area plans, highlighting the importance of improving transportation to the region. State Rep. Kevin McCabe, R-Big Lake, a strong supporter of the road and other regional transportation improvements, said, "The West Susitna access is an ex- citing opportunity not only to unlock some of Alaska's extraordinary resource potential, but to provide all Alaskans new access to the recreation and outdoor opportunities found in the West Su." AIDEA is meanwhile exploring its options on the Ambler Road, a 211-mile surface link from the Dalton Highway to the Ambler Mining District in North- west Alaska where Ambler Metals, a joint-venture of Australia’s South 32 and Trilogy Metals, based in Canada, are ex- ploring copper discoveries. Gov. Dunleavy said progress on the West Susitna Road, “holds significant value for Alaskans, however, especially local residents seeking better access to hunting, fishing, recreation and poten- tial opportunities in mining, processing
Alaska Gov. Mike Dunleavy said progress on the West Susitna Road, “holds significant value for Alaskans, however, especially local resi- dents seeking better access to hunting, fishing, recreation and potential opportunities in min- ing, processing and manufacturing.”
Effort on Ambler Road falters for now despite work by delegation BY TIM BRADNER THERE’S NEW PROGRESS ON AN INDUS- TRIAL ACCESS ROAD AIMED TO REACH AN AREA WITH GOLD AND ANTIMONY DISCOVER- IES IN THE WESTERN MATANUSKA-SUSITNA BOROUGH. But hopes for another minerals ac- cess road to the Ambler Mining District in Northwest Alaska, are dampened for now. An effort by Alaska’s congressional delegation to secure approval for the Ambler Road failed as Congress moved to approve President Donald Trump’s “Big Beautiful” tax and budget bill. But on a brighter note, the Alaska Industrial Development and Export Au- thority (AIDEA) is moving ahead with an application for a U.S. Corps of Engi- neers Section 404 permit for the West Susitna Access Project, a proposed in- dustrial road connecting undeveloped western parts of the Matanuska-Susita Borough with public roads in the bor- ough. The planned 78.5-mile industrial-use road, may also be the first Alaska project to qualify for accelerated federal permit- ting under the president’s “Beautiful” bill, now signed into law. The accelerating permitting requires that the U.S. Army Corps of Engineers develop an Environmental Impact State- ment and a Record of Decision for the road within a year. Under previous law, an Environmen- tal Impact Statement, or EIS, could take years. For example, Donlin Gold, the joint-venture developing a large gold project, took five years to complete its EIS and Record of Decision. Donlin Gold’s project is in the mid-Kuskokwim
and manufacturing.” "My administration and AIDEA are continually exploring ways to boost our economy and create well-paying jobs for
families. This project presents a fantas- tic opportunity for Alaska to expand and generate revenue."
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Terrain west of the Susitna River the planned road will traverse.
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River region west of Anchorage. Gov. Mike Dunleavy has asked Presi- dent Trump to approve the West Susitna access road under the accelerated per- mitting procedure in the new federal
law. The Alaska Development and Export Authority, which is leading development of the West Susitna Road, as well as the Ambler Road, said the West-Su Road will
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