Regulatory and fiscal stability herald bright future for investment in Alaska
There is a renaissance underway on the North Slope driven primarily by two huge projects – Santos’ and Eni’s Pikka development and ConocoPhillips’ Willow. Together, these two, new oil fields will increase production to levels not seen in in two decades.
Despite the challenges that come with operating in the Arctic – high costs, harsh weather, supply chain issues, legal hurdles and fluctuating oil prices –Alaska can expect $22 billion in planned oil and gas industry investment between 2025 and 2030, according to a petroleum economics study by Anchorage-based McKinley Research.
“By 2034, more than 60% of North Slope production will come from fields that, today, have yet to put a single drop into the Trans Alaska Pipeline System,” the study found.
We cannot control many of the challenges Arctic operations bring, but we can maintain fair and stable tax policies that attract the capital needed to keep our resource industries healthy so they can produce jobs and revenues for Alaskans.
Let’s keep Alaska competitive!
What’s at stake
$4B
State & Local Revenue
FY25
70,425
Alaskan Jobs Supported
Direct/Indirect
$0.5B
Grow the Permanent Fund
FY22 Dedicated Revenues to Corpus
$5.8B
Spending with Local Businesses
Annual
Source: McKinley Research for AOGA
Stable tax policy leads to resource renaissance on the North Slope
Pikka is ramping up fast!
The Pikka development hit a continuous production rate of 20,000 barrels of oil per day on June 23, reaching a quarter of its peak capacity in just over a month since first oil on May 18.
The project is on track to hit full Phase 1 production of 80,000 barrels per day by the end of September as more wells come online and seawater injection begins in the coming weeks.
One of the largest new oil developments on Alaska’s North Slope in decades, Pikka showcases what sustained investment, engineering excellence and a stable business climate can deliver.
As production grows, it will boost throughput in the Trans-Alaska Pipeline System, support thousands of jobs across Alaska’s energy supply chain and strengthen our economy for the long term.
There’s another major development on the horizon for Alaska.
Oil Search Alaska (Santos) has taken a major step forward by applying to the U.S. Army Corps of Engineers for permits on the Quokka project — the next big 80,000-barrel-per-day target on the North Slope.
Located near the Miluveach River, just 15 miles east of Nuiqsut, this development would include two drill pads, pipelines and supporting facilities south of the already-ramping Pikka project.
Quokka is the second in a promising trio of discoveries in the area, building on Pikka’s strong momentum, which has already reached a quarter of its peak 80,000 bpd capacity in record time.
While this is an early step in the permitting process, it’s another clear sign of confidence in Alaska. Companies like Santos are investing in our state’s resources, creating good-paying construction and long-term jobs, supporting local businesses, generating vital revenue for Alaska families and helping keep the Trans-Alaska Pipeline System flowing strong for decades to come.
Responsible development through smart planning and permitting is exactly how we stay competitive.
READ MORE: www.petroleumnews.com/story/2026/07/12/e-and-p/osa-applies-to-corps-to-build-2-quokka-drill-pads-...
Repsol is quickly emerging as one of the industry’s most zealous players on the North Slope, where the company and its partners have snatched up hundreds of thousands of acres of oil and gas leases since last fall and recently began production at a multibillion-dollar new field, Pikka, writes Max Graham in Northern Journal.
“It’s an area that could change, in some way, the history of Repsol,” says Josu Jon Imaz, a former member of European Parliament who runs Spain’s largest oil company.
In a series of speeches this spring, Imaz described Alaska as a “company-maker” for Repsol. The company has spent less money in the state than other players, but it’s significantly smaller than U.S. giants like ExxonMobil and ConocoPhillips, so each dollar it spends represents a comparatively larger gamble.
The Spanish company has been investing in oil development in Alaska for nearly two decades, Graham writes, "But it often has taken a passive approach, as a part-owner of projects where other companies were responsible for the day-to-day work of drilling and construction.
Now, Repsol is stepping into a more active role, and quickly expanding its reach across the North Slope."
READ MORE:
www.northernjournal.com/npra-oil-gas-sale-resurgence-majors-alaska-exxon-shell/
PHOTO CREDIT: Repsol
Letter from the co-chairs
Fair and Competitive oil taxes are working
There is a resurgence in oil production and jobs in Alaska that is directly related to our current oil tax policy. SB 21, a fair and competitive tax policy, replaced the antiquated ACES tax structure that drove down petroleum investment for more than a decade. Thanks to SB 21, Alaskans have the greatest opportunity of our generation on the North Slope today.
Some present and former legislators argue that SB 21 was a mistake, but the facts speak for themselves.
The Willow and Pikka projects, years in the making, are in active development, with Pikka now expecting first production any day now. These and other robust investments in Alaska’s future would not have occurred under the previous punitive tax regime. Between the Willow and Pikka projects alone, the oil and gas industry is spending over $10 billion in Alaska, with each project generating thousands of construction jobs and hundreds of operating jobs.
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