By Rob Stapleton
Alaska Journal of Commerce

An unusually high demand for fuel on the North Slope has a Prudhoe Bay based fuel company scrambling to meet the needs.

“We receive more than 10,000 gallons of fuel daily by truck, and with these and our reserves were are close to our capacity,” said Mark Helmericks, president of fuel supplier Colville Inc. “This demand for fuel could become critical if one of the two topping plants should go down.”

Topping plants refine crude oil into useable fuel. BP and ConocoPhillips have plants on the Slope.

Helmericks said the demand for fuel at Prudhoe Bay in 2006 exceeded any of the past years that he could remember.

Helmerick's family started Colville Inc. in the 1960s. Colville has experienced a surge in fuel demand due to an increase in exploration and construction, and the replacement of corroded pipe.

“There is no denying it were are in a rush for fuel,” Helmericks said. “Both topping plants are running at full capacity and the demand for fuel here is a 24-hour affair.”

The spike for ultra low sulfur diesel has also increased.

“We thought that 10,000 gallons a month would suffice, but we are pumping that in less than two weeks,” said Gary Cooper, operations manager for Colville Inc. The company also added a dedicated tank in its Prudhoe Bay fuel farm just for the special fuel.

Colville officials think the peak use may have passed because some companies are pulling out of the oil patch, Colville, however, is planning to make some investments.

“Now we are looking for another tanker truck and those are not cheap or easy to obtain,” said Helmericks. “The cost of those are over $150,000, but we are in a rush for more fuel and are now looking for more tanker capacity.”

Colville is also responsible for jet fuel, which has also seen increases in fuel flowage at Deadhorse Airport.

“This demand may have crested,” said Helmericks. “2007 may show a downturn.”

Helmericks said that the company historically has pumped 60 million gallons of fuel a year.

“We should be OK, if we don't lose the topping plants. But if we do, there is going to be a lot more traffic up and down the Dalton Highway,” Helmericks said.

Rob Stapleton can be reached at rob.stapleton@alaskajournal.com.