Alaska was discovered around 1.2 billion barrels of oil

Alaska was discovered about 1.2 billion barrels of oil, the largest discovery onshore in the United States over the past three decades.

Massive presence of conventional oil on state-owned land could bring relief budget loads in Alaska, caused by falling production in the state and falling oil prices. A new discovery was made just over the last few days on the North slope of Alaska, which was previously considered as an aging oil basin.

Spanish oil giant Repsol (REPYY) and its private partner in the United States "Armstrong energy" announced the discovery on Thursday of the oil field, predicting that production could begin in 2021 and to lead to the achievement of 120 thousand barrels per day. Oil resources lie in the well called Horseshoe, which is 75% owned by Armstrong in Denver. Repsol owns the rest of this well. The discovery is 20 miles South of where the two companies has found oil in the project, known as Pikka. This Northern project is at an early stage of development and is 51% owned by Armstrong, who is the operator of both developments.

Of course, this news can't ease the growing concern of investors in connection with a stubborn oversupply of oil in the United States. Increasing signs that shale oil producers are preparing to increase production after a two-year price war with OPEC. Repsol is actively conducting research in Alaska since 2008, and has additional presence in the Gulf of Mexico. Shares of oil and gas companies jumped nearly 3% in trading in Madrid on Friday.

Find North Slope was less than 6 months after the company Caelus Energy giant Apollo Global Management private equity announced a massive discovery of oil in Alaska waters Smith.

All of this is a big win for Alaska, which last year was forced to freeze hiring and limit the trips of employees of the state due to problems in the oil industry. Alaska, which relies on taxes on oil and gas for the vast majority of its government revenue, was struck by the one-two punch of reducing the production of its Mature fields and the fact that in recent years the price of oil dropped by half.

It got so bad that the pipe system is almost not used nowadays. "This is a great news for Alaska," said Governor of Alaska bill Walker in his statement. "We should all unite to fill the pipeline, which is three-quarters empty".

sections: Economics, World News