North Slope in Decline

The North Slope produces more crude oil than does any other state, but its fields are virtually tapped out. The decline comes at a time when Congress is talking about becoming less dependent on foreign oil and U.S. petroleum demand is increasing.

The North Slope decline follows a national trend; after years of pumping crude from fields around the United States, America's crude oil fields are in decline. Last year, national daily production of oil and natural gas dropped to an average of 7.2 million barrels per day. This is a 36 percent decline since its peak in 1970.

In Prudhoe Bay, the daily average last year was 450,000 barrels per day, which is 72 percent decline from its peak year in 1989. The oil companies are trying to extend the life of the North Slope fields, and others around the nation, by using new technologies to get more oil out of the ground.

The Gulf of Mexico is the only bright spot in crude and natural gas production, and while new discoveries in the Gulf will balance falling production, the Gulf cannot solve the national production crises.

There are few untapped large-producing fields in the United States. The U.S. Geological Department believes the best opportunity lies 60 miles east of Prudhoe Bay in the Arctic National Wildlife Refuge.

While Congress wrestles with opening the Arctic refuge to exploration and drilling, its prospects for production are still about 10 to 15 years in the future. Of course, that's barring environmental lawsuits, which assuredly will follow the legislative approval to open ANWR.

Currently, the U.S. imports 58 percent of its oil consumption, and that is expected to jump to 70 percent in the next 15 to 20 years. With international oil consumption rising, especially in China and India, increased global production is expected to only meet immediate demand.