Alaska's Oil Reserves Cut By 90% (Non-Bakken Story)

This is a most interesting story: Alaska's oil reserves cut by 90 percent.

The U.S. Geological Survey says a revised estimate for the amount of conventional, undiscovered oil in the National Petroleum Reserve in Alaska is a fraction of a previous estimate.

The group estimates about 896 million barrels of such oil are in the reserve, about 90 percent less than a 2002 estimate of 10.6 billion barrels.

It will be interesting to see the stories that follow. This story has to have huge geopolitical implications. You think?

CNN reports this story today. It makes me wonder: when did the oil companies know this? It explains a lot.

For example, back in August, 2010, the federal lease sale was "disappointing" for the reserve. Only five bids were submitted, all from ConocoPhilips (COP) and totaled less than $800,000. It costs that much just to frack one well in the Bakken. That's incredible. But now we know why: lousy EUR projections and onerous federal regulations.

Can you imagine the talk around the coffee tables today up in Anchorage?  Is this the beginning of the end for Alaskan oil? All of a sudden, in my simple mind, the Canadian oil sands become a bit more important.

More to follow.