VOLUME 21 | ISSUE 32 | SUMMER 20254
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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ALASKA RESOURCE REVIEW SUMMER 2025
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