In a flurry of Alaskan oil deals, London-based BP announced sale of interests to American-based Hilcorp in four North Slope oil fields and the use of the proceeds for a big growth of investments on the North Slope. The major reason for America’s energy crisis over the last two decades was the 72% decline of Alaska oil production. But passage of Bill 21’s exploration and development tax cuts is igniting a new American energy boom. Alaska North Slope (ANS) oil production accounts for over 1/3 of the entire economy of the state and contributes 90% of the state government budget.  But since oil production in 1992, production has fallen by 1.3 million barrels a day (mpd)from 1.8 mpd to .5 mpd. The Trans-Alaska Pipeline System that was built to carry over 2 mpd of ANS oil is now 3/4 empty. More importantly, ANS lower volumes combined with distance to markets has made the Alaskan oil relatively more expensive than fracked shale oil in North Dakota...(Read Full Post)