ConocoPhillips slashes Alaska production amid glut, pandemic

ANCHORAGE, Alaska (AP) — ConocoPhillips Alaska will cut production on the North Slope by 100,000 barrels a day, or nearly half its total output, beginning in June but no layoffs were anticipated with the reduction, the company announced Thursday.

The company said it decided to curtail production “in response to unacceptably low oil prices resulting from global oil demand destruction caused by the impacts of the COVID-19 pandemic, combined with a global oversupply of oil.”

The company will ramp down production in late May. Any extensions past June will be determined on a monthly basis, the Houston-based company said. Operation of the 800-mile, trans-Alaska pipeline was not expected to be affected.

“At this time, based on our current outlook, we chose to maintain organization capacity so we can resume programs in the future,” company spokeswoman Natalie Lowman said in an email to The Associated Press.

Read more: https://www.oaoa.com/news/state/article_c8f2b9aa-b7bd-5e32-9dcb-81627734cd01.html
(Odessa American)