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Prudhoe Bay Article
- 1. Prudhoe Bay History The Prudhoe Bay Oil Field is the largest oil field in both the United States and North America. The field is located in Alaska on its North Slope and covers 213,543 acres. When first discovered, the oil field contained approximately 25 billion barrels of oil. The amount of recoverable oil in the field is twice that of the next largest oil field in the United States (The East Texas Oil Field). Prudhoe was discovere d on March 12, 1968 by Atlantic Richfield Company and Exxon with the well Prudhoe Bay Slate #1. The lead geologist to find the drilling sites for the discovery and confirmation wells was Marvin Mangus. Production of the area did not begin until June 20, 1997 when the Alaskan Pipeline was completed. The formation that oil and natural gas are produced from is the Triassic, Ivishak sandstone in the area. Oil is trapped in the Sadlerochit formation, which is a sandstone and gravel structure nearly 9,000 feet underneath the Earth’s surface. In March of 2006, BP discovered a large oil spill in the western part of Prudhoe Bay. The spill was due to corrosion in the pipeline, which allowed 267,000 gallons of oil to be spilled. Because of the spill, BP was forced to shut down operations, which caused worldwide oil prices to rise and the State of Alaska to lose $6.4 million each day until the production was restarted. The Alaskan Pipeline The Trans-Alaska Pipeline System (TAPS) is one of the largest pipeline systems in the world containing 11 pump stations, the trans- Alaska crude-oil pipeline, several hundred miles of feeder pipeline, and the Valdez Marine Terminal. The trans- Alaska pipeline is 800 miles, has a diameter of 48 in ches, and conveys oil from Prudhoe Bay to Valdez, Alaska. The pipeline was built between 1974 and 1977 because of the oil crisis of 1973 caused a sharp rise in prices. Legislation had to be passed to remove legal challenges in order for the
- 2. pipeline to be built due to environmental, legal, and political debates following the discovery of oil at Prudhoe Bay in 1968. Building the pipeline was not easy because there was a wide range of difficulties that resulted from extremely cold temperatures and the isolated terrain of Alaska. Permafrost and frozen ground both had to be dealt with in order to complete the pipeline. Boomtowns rose in Valdez, Fairbanks, and Anchorage due to the tens of thousands of workers drawn to the project. Why Should You Sell Your Mineral Rights? As a landowner, it is your responsibility to understand the significance of mineral rights and royalties to your investment portfolio. If you are in need of quick cash or would like to diversify your portfolio to lower risk, selling your mineral rights may be a great option. Contact Retiro Royalties (http://www.mineralrightstexas.com) today if you are interested in selling your mineral rights or have any questions about the Texas Shales!