Inside a company’s bid to make Alaska’s next big oil field lower-carbon

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With the future of fossil fuels in question, an Australian oil company is branding its new Arctic development as climate-friendly.

But the Australian company building one of Alaska’s huge new oil fields says the development, Pikka, will actually be climate-friendly.with offsets. Those are credits that companies can earn or buy from projects that lower the levels of heat-trapping carbon in the air, such as by planting trees.

An exploration site at ConocoPhillips’ Willow prospect is seen from the air in the 2019 winter season. Willow is located in the National Petroleum Reserve in Alaska. But Santos’ climate plan at Pikka, its first Alaska development, stands out as the highest-profile effort by a company to build a lower-carbon oil field on the North Slope — and, longer term, to address climate change through large-scale carbon capture.

But those proposals remain fraught, Foster added, because of lingering uncertainty around their cost and performance. But the North Slope stands out for the sheer size of its depleted oil reservoirs. Those could store some 9 million metric tons of carbon each year, according to aAlaska GOP Gov. Mike Dunleavy speaks at his sustainable energy conference earlier this year. to begin regulating carbon capture and storage, and to lease underground sites for injection — a step that Republican Gov. Mike Dunleavy’s administration said was needed for the industry’s development in Alaska.

Santos officials declined an interview request and did not respond to questions about the lawsuit. But Hendrix, the ASRC Energy spokesperson, noted that the United Nations’ climate change advisory panelDirect air capture in particular, Hendrix said, could help reduce the need for pipelines and other infrastructure needed to move carbon emissions from their sources to reservoirs where they could be stored. It also “creates the potential to clean up historic emissions,” she said.

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