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BP numbers don’t add up

Posted: Tuesday, April 04, 2006

BP is lying again, now they are trying to provide cover for the Republican governor and Legislature with BP adds in the Alaska newspapers so they can screw the people of Alaska with a new oil and gas tax and gas line scam. BP’s “flack” did not bother to check what they were saying, 17 billion barrels of recoverable light oil, on March 24, the anniversary of the wreck of the Exxon Valdez, against what they had said on March 23 when BP’s ads stated that an improvement of 1 percent in the recovery of the discovered oil on the North Slope would result in an additional 400 million barrels of light oil or a total of 40 billion barrels of recoverable light oil. That excludes the 20 billion barrels recoverable heavy oil. 40 billion barrels down to 17 billion in one day; maybe the “flack” could not multiply by 100.

I wonder what BP has filed with the SEC to whom they must report accurately by law.

The correct answer is at least 40 billion barrels of proven recoverable light oil on the North Slope, which would be in agreement with public document 95-73.

It reminds me of when BP told the newspapers that a piece of gas line pipe weighed 56,000 pounds or 1,400 pounds per foot. When in fact it weighs less than 600 pounds per foot. Earlier BP’s Alaska vice president, Ken Konrad, told the Legislature that the total weight of gas pipe steel in the gas line was hundreds of million of tons when in fact it was only 4 or 5 million tons.

BP never admitted they lied to the Legislature; BP just slipped in the correct answer the next session of the legislature using my numbers. So much for their $125 million in gas line engineering studies.

The representatives of BP and Exxon, Houston, each independently of the other, told Representative Harry Crawford that “they” were not going to consider a gas line from the North Slope until the second or third decade.

The operative word is “consider” and that is not construct. About the time the oil companies would be planning an Over the Top Gas Line to McKenzie Delta to join the McKenzie River gas line; 250 miles vs. 2140 miles for the Alcan gas line, a giant difference in the bottom line; only a fool would do different thus one cannot blame them. Conoco said Cook Inlet region should look to Cook Inlet for its gas not from the North Slope. Why? In any event, they are correct Alaska must look after its own interests not relying on oil companies.

The Anchorage offices of BP and Exxon went to great lengths to try to explain away the Houston representative’s statements in Utah. But, clearly Rep. Crawford knew exactly what he was told and there was no difference in what the home office representatives of Exxon and BP said independently of each other. Hence, Alaska now has the reserves tax on the ballot. They just lied to the wrong guy!

Jerry McCutcheon

Anchorage



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