In 2004, energy exports from Alaska expanded 23% to $376 million, or $71 million more than in 2003. The category consists primarily of liquefied natural gas, light petrochemicals and coal.

Japan purchased 80% or $300 million of Alaska’s energy exports in 2004. China, Hong Kong, Korea, Canada and Chile imported the remainder.

Alaska also produces nearly one million barrels a day of crude oil. However, the international export of Alaska North Slope crude voluntarily ended in 2000. Now these sales go to west coast refineries in the United States and therefore are not included in these statistics.

Even without crude oil exports, the energy category will likely increase dramatically in the near future. Governor Murkowski and the Federal Congressional delegation are propelling the decade long dream of a natural gas pipeline closer to reality. The state is currently evaluating three separate pipeline development proposals. With high gas prices and diverse investment interest in constructing the pipeline, the potential for commercializing Alaska’s gas resources looks promising.

The size of the resource is staggering. Alaska has 35 trillion cubic feet of proven gas reserves in the North Slope. Recent tests on methane hydrate resources strongly suggest that an additional 20 trillion cubic feet of gas can be produced out of the existing Prudhoe Bay infrastructure using conventional technology.

Recently published U.S. Geological Survey (USGS) estimates for conventional North Slope gas resources push Alaska’s potential over 200 trillion cubic feet. A natural gas pipeline could allow some or all of this energy to reach tidewater in southern Alaska where it can be exported internationally.

There has also been renewed discussion of developing oil and gas in the Arctic National Wildlife Refuge (ANWR). With the new composition of the US Senate and support from President Bush, the outcome looks promising for a successful conclusion to the ANWR debate.

The USGS estimates between 12 and 32 billion barrels of oil exist in the “1002 area” of ANWR, of which, between 6 and 16 billion barrels are technically recoverable using current technology. In addition, there is an estimated 35 trillion cubic feet of natural gas.

The USGS studies suggest 85% of the recoverable oil in ANWR is in the northwest corner of the “1002 area”, only a few miles from the existing operations and pipeline. The current oil pipeline is operating half full and has the capacity to transport this new production.

Other promising areas for future oil and gas production include the Alaska Peninsula, the Cook Inlet, the Yukon Flats, and the National Petroleum Reserve Alaska (NPR-A).

A lease and licensing program on five million acres of the Alaska Peninsula is scheduled for 2005. Geologists believe this area in southwest Alaska, at tidewater, has significant potential for oil and gas finds, similar to the current production in the Cook Inlet.

Exploration, leasing, and new discoveries continue to expand existing Cook Inlet fields, which supplies energy to the populous south central region of Alaska and provides the gas that is currently exported internationally.

In December 2004, the USGS announced their findings that another Cook Inlet sized oil and gas domain exists in the Yukon Flats, in the eastern part of central Alaska. The report estimates approximately 5.5 trillion cubic feet of natural gas, 173 million barrels of oil, and 127 million barrels of natural-gas liquids are technically recoverable in the area.

Renewed activity in 23 million-acre NPR-A area in northwest Alaska could also lead to major finds and help fill the pipeline with energy. In June of 2004, five oil companies submitted $54 million in bids to develop 123 oil and gas lease tracts. According to the Bureau of Land Management it was the largest on-shore federal lease sale ever in Alaska.

Developments in each of these world class oil and gas prospects are encouraging for future exploration and increased energy exports in the future.