ConocoPhillips to restore slope production in sign of strengthened oil market

ConocoPhillips will restore its North Slope oil production to previous levels in July, a company spokesperson said Wednesday. It’s another sign of gradually improving oil markets.

The decision will effectively add 100,000 barrels per day and bring total Alaska production back to just under 500,000 barrels per day.

“We intend to restore the production we curtailed in June,” company spokesperson Natalie Lowman said in an email. “Further decisions on curtailment will be made on a month-to-month basis,” she said, meaning that if markets, and oil prices, deteriorate again ConocoPhillips may impose a voluntary production curtailment.

The company imposed cuts in North Slope producing fields it controls, mainly the Kuparuk River and Alpine oil fields. Other fields on the slope, such as the large Prudhoe Bay field, were not affected.

Prices for Alaska North Slope oil moved above $40 per barrel this week, closing at $41.38 per barrel on Tuesday. It had dropped to below $10 per barrel.