ConocoPhillips Makes Final Investment Decision to Develop the Willow Project
ConocoPhillips (NYSE: COP) announced that it will move forward with development of the Willow project in Alaska.
This Final Investment Decision approves the project and funds construction needed to reach first oil. The decision follows the Department of the Interior March 2023 Record of Decision and recent positive court orders, including this week’s Ninth Circuit Court of Appeals denial of plaintiffs’ request for an injunction.
“We are excited to reach this significant milestone,” said Ryan Lance, chairman and chief executive officer. “With this project authorization, we’ve begun winter construction and Alaskans have started to receive the benefits from responsible energy development.”
According to the Bureau of Land Management, the Willow project is projected to deliver $8 billion to $17 billion in new revenue for the federal government, the state of Alaska and Alaska Native communities.
When completed, Willow is estimated to produce approximately 600 million barrels across the lifetime of the project, decreasing American dependence on foreign energy supplies. Designed to support and coexist with subsistence activities on Alaska’s North Slope, the Willow project underwent five years of rigorous regulatory and environmental review.
Willow will be built using materials primarily made and sourced in the U.S. and has the potential to create over 2,500 construction jobs and approximately 300 long-term jobs.
“We are grateful for the many supporters who advocated for Willow. Alaska Native communities and groups, especially those closest to the project on the North Slope, continually provided input that helped shape this project. We also appreciate the unwavering support from Alaska’s bipartisan Congressional Delegation – Senators Lisa Murkowski and Dan Sullivan and Representative Mary Peltola – the state legislature and organized labor groups,” Lance added. “Our employees and the contractor community have dedicated years to designing a project that will provide reliable energy while adhering to the highest environmental standards.”
Win for Alaska and America. Alaska's proved crude oil reserves of 3.2 billion barrels are the fourth largest of any state. However, many of Alaska's oil fields are mature, and in 2022 the state's oil production averaged 437,000 barrels per day, the lowest level since 1976 which ranks 6th behind Texas, New Mexico, North Dakota, Colorado, & Oklahoma. Alaska is more depended on the oil industry than any other state-even more than Texas as aside fishing, oil is the largest private industry. Alaska is a tax free Norway & needed a life line from either private industry or the federal government as it's tax base declines with oil.