Competitive Framework for Alaska: 2012

Terms for Heavy Oil General Major heavy oil development may face significant challenges, since a mixture in the TAPS line of too much heavy oil may cause operational problems. Major heavy oil development may have to be stimulated in conjunction with expansion of light oil projects, with possible condensate and liquid stripping projects from gas fields (such as Point Thomson) and/or a construction of GTL plant(s) (with subsequent cracking of waxy components). Alternatively, one could build upgraders fueled by cheap natural gas on the North Slope in order to upgrade heavy crudes to lighter crudes. It is not known at this time whether construction of upgraders would be a viable possibility. 88

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