Hilcorp sizes up Arctic drilling opportunity
Monday, January 12, 2015
Hilcorp may soon become another energy company exploring the Arctic waters, according to Environment & Energy Publishing.
In November, Hilcorp bought half of BP’s Liberty lease site and in December, the company sought permission to conduct studies of the site. Hilcorp intends to construct a man-made island in federal waters of the Beaufort Sea, which lies north of Alaska and Canada’s Yukon Territory and Northwest Territories.
Along with the plans comes concerns about oil spills, damage to wildlife, pollution and other environmental impacts. If Hilcorp’s exploration of the Arctic is successful, the company will join Royal Dutch Shell PLC in the effort to produce hydrocarbons from federal offshore lands.
From Environment & Energy Publishing:
“The company estimates that total recovery at the Liberty field would range from 80 million to 150 million barrels of oil. The drilling operation would continue for 15 to 20 years, with a peak production rate of 60,000 to 70,000 barrels per day.”
Via: Environment & Energy Publishing > ALASKA: Hilcorp eyes Arctic exploration despite plunging oil price
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Shale FAQ
What is fracking?
Fracking is a slang term for hydraulic fracturing. Fracturing is a process by which highly pressurized fluid is pumped thousands of feet into the ground to fracture rock formations. The goal is to release the natural gas that’s locked inside the rock.
Is it safe?
What most concerns people about fracturing is ground water contamination. The worry is that fractures underground, caused by the process, will extending upwards and into aquifers, releasing gas and chemicals into the ground water supply. There’s been no confirmed reports of such a thing happening. Though surface spills and drill site blowouts can lead to localized environmental concerns.
Will my water catch on fire?
Flammable water is caused by the release of methane gas into a drinking water supply. Methane gas occurs naturally and can be released by any kind of drilling, including water wells. In Pennsylvania officials fined Chesapeake Energy $1 million for contaminating ground water with methane. It was determined that the company had not properly cemented it’s boreholes and gas migrated up the well, between rock and into aquifers.