San Antonio-based refiner Tesoro said it’s buying all of Flint Hills’ wholesale fuel marketing contracts in Alaska, along with a terminal in Anchorage with 580,000 barrels of storage, a truck rack and rail-loading capability.
The Alaska Dispatch News reports that when production begins in 2018 at the filed in the National Petroleum Reserve-Alaska — an Indiana-sized Arctic reserve — the project is expected to yield 30,000 barrels of oil daily at its peak.
“If the U.S. stands in the background, Russia will move forward, and things won’t be as good as they could be if the U.S. had a seat at the table in the Arctic,” said Jed Hamilton, senior Arctic consultant at Exxon Mobil Upstream Research Company.
Although other gravel islands have been built in the Beaufort Sea, Hilcorp’s proposed Liberty project would be the first oil production facility located entirely in federal waters off the Alaska coast.
Environmentalists say there is a clash between Shell’s exploratory oil drilling in the Chukchi Sea and Obama’s visit to survey shrinking glaciers and speak with coastal residents worried about rising seas.
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