Alaska is one of the most important oil states in American history. At its peak in 1988, the state produced over 2 million barrels of oil per day. That was about 25 percent of all U.S. oil output at the time. Production has declined significantly since then, but Alaska still pumps around 400,000 to 450,000 barrels a day, mostly from the remote North Slope.
What Is Prudhoe Bay?
Prudhoe Bay is the largest oil field ever discovered in the United States. It sits on Alaska's Arctic coast, about 250 miles north of the Arctic Circle. The field was discovered in 1968. At that time, it held an estimated 25 billion barrels of recoverable oil. Since production began in 1977, about 13 billion barrels have been extracted. The field still produces today, but at a fraction of its peak rate.
The Trans-Alaska Pipeline
Getting oil off the North Slope is a massive engineering challenge. There are no roads connecting the North Slope to the rest of Alaska. The solution was the Trans-Alaska Pipeline System (TAPS), completed in 1977. The pipeline stretches 800 miles from Prudhoe Bay to the port of Valdez on the south coast. From Valdez, tankers carry the oil to refineries in the Pacific Northwest and California. The pipeline crosses three mountain ranges and hundreds of rivers and streams. It is one of the largest privately funded construction projects in U.S. history.
Newer Fields and the Future
As Prudhoe Bay declines, new fields are being developed nearby. The Alpine Field and the Willow Project in the National Petroleum Reserve-Alaska (NPR-A) are among the most significant recent developments. The Willow Project, approved in 2023, is expected to produce up to 180,000 barrels per day at peak output and extend North Slope production for decades.
Who Regulates Alaska Oil and Gas?
The Alaska Oil and Gas Conservation Commission (AOGCC) regulates oil and gas wells in the state. It sets drilling standards, approves well spacing, and enforces safety rules. Alaska also has a significant amount of federal land where the Bureau of Land Management and the Bureau of Safety and Environmental Enforcement (BSEE) play a role. The AOGCC's public data is available at commerce.alaska.gov/web/aogcc.