Trans-Alaska pipeline to see temporary 10% throughput cut

Published: Apr. 24, 2020 at 1:06 PM AKDT
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With an oversupply of oil across the world, the Alyeska Pipeline Service Co. will temporarily cut throughput down the trans-Alaska pipeline by roughly 50,000 barrels per day.

Michelle Egan, a spokesperson for the Alyeska Pipeline Service Co., says the company is asking each North Slope producer to deliver 10% fewer barrels each day.

“Alyeska continually monitors anticipated Valdez Marine Terminal inventory levels, including monitoring incoming flow rate, current inventory, and scheduled vessel movement,” Egan wrote by email. “Inventory can fluctuate based on many factors, including shutdowns or operational upsets, incoming flow rates, weather impacts on loading, and tanker schedules.”

With high inventory and falling storage capacity, the Alyeska Pipeline Service Co., has the authority to ask producers to deliver less oil. Egan did not state when Friday’s order would be rescinded.

In recent days, TAPs has transported roughly 500,000 barrels per day from the North Slope.

Larry Persily, an Alaska oil and gas analyst, said the cut in throughput would likely cost the state several million dollars in revenue per month. With low oil prices, the state stands to lose a lot less tax revenue than if prices were higher.

The 10% cut for North Slope producers is not surprising and is being mirrored by producers across the world, Persily said. "No one escapes it."

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