Small Oil And Gas Firm Moves To Take Advantage Of Alaska’s Gas Pipeline Prospects

By James Brooks

(Alaska Beacon) -- A small independent oil and gas company on the North Slope is making a bet on construction of the proposed trans-Alaska natural gas pipeline, a new regulatory filingreveals.

According to the Alaska Department of Natural Resources, Strong Energy Resources of Texas has asked the state to designate a new oil and gas unit on the North Slope, an administrative change that the company says would position it to produce gas for the pipeline.

Strong is seeking to designate the Gubik field, which is located about 70 miles west of the Dalton Highway, on the Colville River. 

“Strong believes there is a timely opportunity to further assess both the Gubik Field and the near

Foothills region,” the firm wrote in its application. “To this end, Strong has engaged with (Arctic Slope Regional Corp.) and (Alaska Gasline Development Corp.) to gauge general interest and there is an openness to gas development following Phase 1 of the LNG pipeline.”

Strong’s application says the firm intends to take advantage of equipment and manpower mobilized for construction of the trans-Alaska gas pipeline in order to develop Gubik, whose gas would be relatively low in carbon dioxide and other contaminants, making it ideal for the pipeline.

To date, oil and gas producers on the North Slope have taken a “Field of Dreams” approach to the gas pipeline — if developer Glenfarne builds it, they will come.

Strong’s actions show that at least one firm is taking some action ahead of time.

The firm declined to comment on its plans when contacted through DNR for this article.

Alaska currently has 24 oil and gas units on the North Slope, including the venerable Prudhoe Bay unit and the under-development Alkaid, which was established in 2020 on state land near the Dalton Highway.

As defined by the state, a unit is a group of oil and gas leases, managed collectively, that can cover several oil and gas reservoirs. 

Sean Clifton, policy and program specialist for DNR, said by email that the agency’s Division of Oil and Gas received applications to form new units frequently. “It is a common method to extend leases beyond their primary terms, which can be important for facilitating exploration and development in areas challenged by remoteness from established infrastructure,” he said.

More than a third of all of the North Slope’s oil and gas units have been created since 2020. 

Approval isn’t guaranteed: DNR rejected a 2023 attempt to form the Greater Point Thomson Unit, saying it needed more information about how the area would likely be developed.

A second application was approved last year, and it remains the newest unit on the North Slope.