President's Message
David Wight, President and CEO

Challenges of moving oil in Alaska

The economics of moving oil across Alaska have never been more challenging. As energy prices climb, North Slope producers, regulators and customers want lower shipping costs and increased accountability.

Now the Trans Alaska Pipeline System (TAPS) owner companies have approved our pipeline reconfiguration plan so that we can better position ourselves for the future. We are updating and upgrading TAPS equipment and procedures to increase efficiency and extend TAPS’ economic life.

Five years from now, Alyeska will be a very different company than it is today. Our core values of safety, operational integrity and environmental performance will remain. But modern equipment and procedures will make us a leaner and more efficient company.

New systems and infrastructure will make workloads more manageable and operations more transparent to stakeholders. These changes have already started. Our systems renewal group, for example, developed and deployed a new management system that makes work processes more manageable and understandable.

Pipeline reconfiguration plans will institute proven pipeline practices, standards and technologies. Modern technologies and automation will let us maintain our already high reliability for less money. Projections indicate that we will reduce TAPS’ annual operating costs by about 10 percent plus eliminate maintenance costs and hazards associated with running equipment and facilities that will no longer be needed.

Reconfiguration will provide many important benefits, but we understand that it will also impact TAPS personnel. Reconfiguration-associated workload changes will eliminate some 350 jobs during the next two-to-three years, about 20 percent of TAPS’ total workforce of 1,600 Alyeska and contractor employees. The reductions will be split roughly 50-50 between Alyeska staff and contractors.

I am committed to open and frequent communication about specific changes and major project decisions with a specific focus on impacts to our employees and contractors.