The US Energy Information Administration (EIA) latest Short-Term Energy Outlook forecasts that crude oil produced from Alaska will reach 477,000 barrels per day (b/d) in 2026, the highest level since 2018.

After decades of decline, the EIA expects a 13 per cent (55,000 b/d) increase in Alaska oil production, the largest annual increase since the 1980s.

This recent growth is attributable to two projects on Alaska’s North Slope:

1. The Nuna project, owned by ConocoPhillips, started production in December 2024 and is expected to produce 20,000 b/d at its peak. In August 2025, the project produced 7,000 b/d, offsetting existing production declines.
2. The Pikka Phase 1 project, jointly owned by Santos and Repsol, is expected to start production during the first quarter of 2026 and reach peak production of 80,000 b/d by mid-2026, nearly 20 per cent of total Alaska oil production in 2025.

The wells from these new projects outperform most Alaskan wells. Based on recent production records from the Alaska Oil and Gas Conservation Commission, these wells produce about 480 barrels of oil equivalent per day (BOE/d) on average, while 78 per cent of Alaskan wells produced less than 400 BOE/d in 2023.

The EIA’s latest forecast for 2026 production—an increase from its initial forecast—reflects Santos’s expectations for an accelerated ramp-up to peak production for the Pikka Phase 1 project and recent well tests demonstrating high productivity. -TradeArabia News Service