“It’s a really exciting discovery for us, and we think it’s really exciting for the state of Alaska,” Caelus CEO Jim Musselman said in a phone interview with Bloomberg. “They need a shot in the arm now.”
“It is not going to be easy, but we’ve had projects like this around the world,” Musselman told The Wall Street Journal. He formerly led Kosmos Energy when it recorded a massive oil discovery of the coast of Ghana about a decade ago.
The one thing that Caelus has in its favor is strong support from the state of Alaska. Desperate to halt declining output and cratering state revenues, the Alaskan government has been frantically searching for ways to increase oil production. Output has been falling from Alaska’s aging North Slope, with production down below 500,000 barrels per day from a peak in the late 1980s at over 2 million barrels per day.
Happiness is a positive cash flow.