Alaska sets sights on heavy crude

JUNEAU, Alaska, Dec. 14 (UPI) -- Moving forward with production of heavy oil reserves in Alaska should be included in long-term strategies for the state, lawmakers said.

Heavy oil is more expensive to refine than its lighter crude oil counterpart. International majors like ConocoPhillips and BP have committed billions to projects meant to exploit those reserves.

Heavy oil production from lucrative North Slope fields made up 5 percent of the total piped from the region in 2005. That figure rose to 6.5 percent in 2009, prompting lawmakers to give heavy oil a further look, reports the Fairbanks Daily News-Miner.

"Oil is still precious up there," said Republican state Sen. John Coghill. "Heavy oil needs to be included in the discussion."

Steve Rinehart, a spokesman for BP, said his company has sunk $100 million to exploit heavy oil in the North Slope in 2008, but noted there were technological hurdles to overcome.

"It is a significant part of the remaining known North Slope resource base," he said. "However, there are challenges."