U.S. BLM O.k.'s Unit Agreement for Conoco Prospect

Loretta Lucas 2/6/08 for submission due 2/1/08 Blog 3

ARTICLE TITLE: “U.S. BLM o.k’s Unit Agreement for Conoco Prospect”
SOURCE NAME & WEB-LINK: Reuters.com
http://www.reuters.com/article/marketsNews/idUKN0115571920080202?rpc=44&sp=true
BLOG SUBMISSION DATE: 2/5/08 for assignment due on 2/1/08
POST #: 3
SUMMARY:
The U.S. Bureau of Land Management(BLM) said it has approved a unit agreement for ConocoPhillips' Moose’s Tooth prospect in the Alaskan National Petroleum Reserve area.
It was the first unit agreement ever issued to consolidate leases in land holdings on Alaska's North Slope. Unit agreements allow developers to combine lease areas to then manage them by conducting drilling and other operations more efficiently.
The Moose’s Tooth unit includes 34 leases totaling 147,456 acres and Anadarko Petroleum Corp. is ConocoPhillips' partner in the leases. The Moose’s Tooth unit is located just west of the ConocoPhillips-operated Alpine oil field located on state land. Proximity to the existing oil field makes it more feasible to develop the new unit according to the BLM.
The 23-million-acre Alaskan National Petroleum Reserve was established in 1923, initially as a potential source of oil and gas to be used by the nation's military forces. Despite sporadic exploration attempts, the Alpine field discovered in 1990 and currently owned by ConocoPhillips is one of the most productive fields in the area.
Alpine, along with its two satellite fields, Nanuq and Fiord, produced 134,867 barrels per day in December, according to local media reports. And BLM Alaska Director Thomas Lonnie was quoted as stating "We view this as the first step toward successful development of nationally important energy resources from this petroleum reserve," in regards to the consolidation of Conoco’s leases on the land surrounding Alpine.
ANALYSIS:
I think that the Bureau of Land Management is conflicting with the efforts of the Department of the Interior. The Interior department is also trying to sell oil leases in Alaska, but was put on hold by Congress due to the debate over protecting the wildlife in Alaska. So how did the BLM get the “go-ahead” to allow oil drilling companies’ to consolidate leases into a larger drilling area? It seems like the government can’t make up its mind whether to drill or not.
While the use of Alaskan oil would decrease the U.S. dependence on foreign oil, it won’t erase the dependence entirely, so why is there two standards for Alaskan oil. One U.S. agency, the Dept. of interior cannot sell oil leases in Alaska, but the BLM can. Therefore, the decision on the Alaskan oil fields needs to be revisited by Congress and get a definitive answer on who can and cannot drill in Alaska, as well as a clear decision on who makes the rules about oil drilling in Alaska, the BLM, the Interior Dept., or another agency.