EIA expects Alaska crude oil to increase by 13% in 2026

The U.S. Energy Information Administration's (EIA) latest Short-Term Energy Outlook released on Wednesday forecast that crude oil production in Alaska will reach 477,000 barrels a day (bpd), the highest level since 2018.

EIA stated that Alaska oil production will increase by 13% or 55,000 barrels per day, the biggest annual increase since 1980. Two projects on the North Slope are driving this growth.

The agency stated that the ConocoPhillips' Nuna Project, which began in December 2024 and is expected to peak at 20,000 bpd, while Santos and Repsol's Pikka Phase 1 project, starting in early 2026 and reaching 80,000 bpd in mid-2026 could represent nearly 20% of Alaska's total oil production in 2025.

EIA stated that wells from these project outperform most Alaskan wells. Alaska Oil and Gas Conservation Commission reports that new wells produce an average of 480 barrels equivalent per day. In 2023, 78% of Alaskans wells will be producing less than 400 barrels.

The Trump administration finalized last week its rollback on Biden's restrictions on oil and natural gas drilling in Alaska, which is the largest area of public land that has not been disturbed. (Reporting by Anushree Mukherjee in Bengaluru Editing by Frances Kerry)

(source: Reuters)