A Cook Inlet oil and gas producer has asked the state for permission to suspend operations in two area until at least April 2021.
Glacier Oil and Gas, which operates the Osprey Platform and other facilities near the west side of Cook Inlet through subsidiary Cook Inlet Energy, applied to the Alaska Division of Oil and Gas to suspend operations on May 29. The company cited the current low crude oil prices and lack of demand, according to a letter issued by Division of Oil and Gas Director Tom Stokes on Thursday.
The company will keep the facilities staffed appropriately, according to the letter. The state granted the application, saying that even though it benefits Alaskans if the oil and gas are harvested and sold, it would be at a loss right now, and it make more sense to conserve the resources for a time when they are worth more.
Oil prices dipped sharply this spring, partly in response to low demand due to the coronavirus pandemic preventing travel. A number of Alaska producers have cut back on operations and either laid off or furloughed staff, waiting for prices to come back up and make operations profitable again. Reach Elizabeth Earl at email@example.com.