BP will reduce the active rig count at Prudhoe Bay from five drilling rigs to just two, a decision caused by low oil prices that is expected to impact oil production and more than 200 contracting jobs while sending negative waves across the state’s oil-dependent economy.
With oil prices at their lowest since 2008, the news comes on the heels of several other announcements of job reductions and project delays as companies slash operations in Alaska. BP Exploration Alaska recently announced a loss of $194 million in its latest annual report to the Securities and Exchange Commission.
The decision followed discussions involving Prudhoe Bay partners ExxonMobil, ConocoPhillips and the operator of the field, BP, said Dawn Patience, a spokesperson with BP Alaska.
“We were asked to substantially reduce our expenses and our capital, and this is part of that,” Patience said. “In this low oil price environment you have to review the appropriate level of activity.”
http://www.adn.com/article/20160307/oil-giants-sharply-reduce-rigs-working-prudhoe-bay-affecting-scores-jobs