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Alaska Oil Reserves May Have Grown 80% on Giant Discovery

  • Caelus discovers about 6 billion barrels at Smith Bay
  • Field could one day produce as much as 200,000 barrels a day
Moutains and Ice Floating on the Sea, Glacier Bay National Park, USA
Source: Getty Images
Updated on

Alaska’s oil reserves may have just gotten 80 percent bigger after Dallas-based Caelus Energy LLC announced the discovery of 6 billion barrels under Arctic waters.

The light-oil reserves were found in the company’s Smith Bay leases between Prudhoe Bay and Barrow along the Arctic shore, according to a statement from Caelus on Tuesday. As much as 40 percent of the find, or 2.4 billion barrels, is estimated as recoverable, the company said. That compares with the state’s proved reserves of 2.86 billion barrels in 2014, almost 8 percent of the U.S. total, Energy Department data show.