President's Message
Kevin Hostler, President and CEO

Celebrating 30 years of pipeline operations

More than fifteen billion barrels of domestic oil production from Alaska’s North Slope. More than 19,000 tankers loaded in Valdez. Three decades of jobs for Alaskans. This is a look into what it means for Alyeska to celebrate 30 years of oil transportation in Alaska.

On June 20, 1977 oil from Prudhoe Bay first entered the pipeline, forever changing the face of business and economy for Alaska and the United States. Thirty years later, more than 15 billion barrels of oil have been transported through the 800-mile pipeline to market. TAPS accounts for nearly 17 percent of all U.S. domestic crude oil production and about seven percent of U.S. consumption.

At a cost of $8 billion, it took three years and a workforce of 70,000 men and women to complete what was at the time the biggest construction project in the world and become one of the engineering marvels of the modern world. One of our original project managers equated it with constructing the Great Wall of China. This 48-inch pipeline crosses three mountain ranges and 34 major rivers and streams. It was built to withstand earthquakes and address changing soil conditions throughout the system.

The numbers are impressive and so are the superlatives. They can be quantified to explain the economic impact that the system has had on the state and the nation. While I am proud of these accomplishments and the operational integrity of the system, I am most proud of the commitment from the many men and women who have helped us reach these milestones over the course of 30 years.

We have employees who have been with us for thirty years and we have 30-year-old employees – a generation apart, yet working side by side, each one committed to the daily task of moving oil safely. We have people who have worked through extreme conditions over the years. Some have responded to incidents at 30 degrees below zero. Some have worked through the threat of wildfire. Others have helped secure equipment as flood waters edged upward. And others perform maintenance rounds in the dark of winter. From our remote pump stations to the terminal in Valdez and from our maintenance equipment yard to the escort tugs in Prince William Sound, our workforce ensures safe operations and maintenance year-round. And they do it safely, efficiently, and with an absolute commitment to environmental stewardship.

As we look to the next 30 years, we’re making investments in our people and to our infrastructure to improve upon how we operate. We’re committed to providing our stakeholders with the assurance that we’re taking the right steps to ensure the longevity and integrity of our pipeline system. We’re working in partnership with our regulators as we accomplish this. Our message to Alaska is we understand the trust you’ve placed in us to be the prudent operator of this amazing pipeline system and we’re committed to honoring and keeping that trust for the next 30 years.