The most important development in Alaska during 1967 was the 4-fold increase in development drilling and the doubling of state oil production resulting from oil-industry activities in Cook Inlet basin. Exploration decreased during 1967 and was conducted in only 4 of the 10 basins in Alaska. Wildcat drilling declined 8.3% and of the 33 wildcats drilled, 2 were on the Arctic Slope, 1 on the Alaska Peninsula, and the rest were in Cook Inlet. The success percentage decreased to 12.5% with only 4 new discoveries, all in Cook Inlet basin. They include 1 new gas field at Beaver Creek, 1 new oil pool at North Trading Bay, 1 deeper gas pool at Kenai, and 1 gas-field extension at Nicolai Creek.

Geophysical activity declined 14% to a total of 68.5 crew-months, includnig 42.5 crew-months in Cook Inlet basin, 14 crew-months in Gulf of Alaska basin, 10 crew-months in Bristol Bay basin, and 2 crew-months in the Yukon-Delta area. Although this represents a decrease in activity in Cook Inlet, it is an increase in the Bristol Bay and Gulf of Alaska areas where industry interest is high in anticipation of offshore sales scheduled for 1968 and 1969. Extensive multicompany marine seismic surveys were conducted in both the Gulf of Alaska and lower Cook Inlet areas. Geologic field-party activities declined 14% to a total of 39 crew-months, including 17 crew-months in the Gulf of Alaska area, 13 crew-months in the Bristol Bay area, 6 crew-months in the Cook Inlet area, and 3 crew-months o the Arctic Slope. Land activities continued to be restricted by the Alaska native claims that cover 90% of the land area of the state. Federal oil- and gas-lease holdings decreased 23% to a total of 7,112,000 acres at year-end and state leases totaled 3,689,599 acres. The 3 state competitive lease sales brought a new record bonus total of $20,236,634 for 301,404 acres, mostly in Cook Inlet. The only other lease sale was the Tyonek Indian sale in Cook Inlet that totaled $2,699,050 for 13,039 acres.

Oil production increased 101% to 28,917,464 bbl and gas production increased 51.7% to 62,515,658 Mcf. The 41 development wells drilled were in Cook Inlet and 37 were completed as producing wells. Five new platforms were added to the 6 platforms operating in offshore Cook Inlet, and 3 more are expected to be constructed in 1968. Submarine pipelines to shore facilities were installed and the 20-in pipeline and marine terminal on the west side of Cook Inlet were completed. Construction also began on the ammonia-urea and the liquified methane plants at Nikiski on the Kenai Peninsula to utilize gas from the Kenai and North Cook Inlet fields.