A huge new Alaska oil discovery has been made by Repsol, a large Spanish oil company, and partner U.S.-based Armstrong Energy that could be the biggest onshore discovery in 30 years.
More than 1.2 billion barrels of light crude could be recovered from two test wells that were drilled to discover the oil in the basin, which was previously thought to be an old, mostly depleted basin, Fox Business reported. Plans are underway to begin collecting oil in 2021, with as many as 120,000 barrels a day being removed.
The discovery could benefit Alaska’s sagging economy, which has been hurt by declining oil production in the state and the drop in oil prices, CNN Money reported.
The new well, called Horseshoe, is 75 percent owned by Armstrong Energy, which is based in Denver. Epsol owns the remaining 25 percent interest.
Repsol saw a quick 3 percent jump in its trading price in Madrid on Friday. “We’ve scored a good goal in the game, and we have to play the rest of it,” a Repsol spokesman said, according to the Alaska Dispatch News.
“I believe that this announcement — with the state working together as a partner with Congress, the new administration, and the private sector — could usher in a new renaissance of economic growth and job creation in Alaska,” U.S. Sen. Dan Sullivan of Alaska said, the Dispatch News reported.
Twitter users were most excited over the timing of the Alaska oil discovery with a pro-oil president to encourage development of the resource.
© 2025 Newsmax. All rights reserved.