Pikka Project Drives Alaska North Slope Oil Production Past 500,000 Barrels Per Day

Alaska's North Slope oil production has surpassed 500,000 barrels per day for the first time since February 2022. The state's Department of Revenue reported a daily average of 510,389 barrels on September 2nd, with each barrel selling for $93.60.

This significant increase is largely attributed to new oil entering the system through projects such as Pikka, operated by Santos in partnership with Repsol. Pikka began producing oil in May and was producing approximately 23,000 barrels per day by August, with a plateau production target of around 80,000 barrels per day.

The growth in North Slope production is seen as an encouraging sign for Alaska's state budget, which remains heavily dependent on petroleum taxes and royalties. The Department of Revenue projects that production will average 518,500 barrels per day during fiscal year 2027, up from a forecast average of 459,200 barrels per day in fiscal year 2026.