Petroleum exploration in the Arctic 1

Petroleum exploration in the Arctic

Location of Arctic Basins assessed by the USGS.

The exploration of the Arctic forpetroleum is more technicallychallenging than for any otherenvironment. However, with increasesin technology, continuing high oilprices and drastic melting of glaciersand ice due to global warming (makingit easier to drill and explore), theregion is now receiving the interest ofthe petroleum industry.

There are 19 geological basins makingup the Arctic region. Some of thesebasins have experienced oil and gasexploration, most notably the AlaskaNorth Slope where oil was firstproduced in 1968 from Prudhoe Bay.However, only half the basins - such asthe Beaufort Sea and the West BarentsSea - have been explored.

A 2008 United States GeologicalSurvey estimates that areas north of the Arctic Circle have 90 billion barrels of undiscovered, technically recoverableoil (and 44 billion barrels of natural gas liquids ) in 25 geologically defined areas thought to have potential forpetroleum. This represents 13% of the undiscovered oil in the world. Of the estimated totals, more than half of theundiscovered oil resources are estimated to occur in just three geologic provinces - Arctic Alaska, the AmerasiaBasin, and the East Greenland Rift Basins.More than 70% of the mean undiscovered oil resources is estimated to occur in five provinces: Arctic Alaska,Amerasia Basin, East Greenland Rift Basins, East Barents Basins, and West Greenland–East Canada. It is furtherestimated that approximately 84% of the undiscovered oil and gas occurs offshore. The USGS did not considereconomic factors such as the effects of permanent sea ice or oceanic water depth in its assessment of undiscoveredoil and gas resources. This assessment is lower than a 2000 survey, which had included lands south of the arcticcircle.A recent study carried out by Wood Mackenzie on the Arctic potential comments that the likely remaining reserveswill be 75% natural gas and 25% oil. It highlights four basins that are likely to be the focus of the petroleum industryin the upcoming years: the Kronprins Christian Basin, which is likely to have large reserves, the southwestGreenland basin, due to its proximity to markets, and the more oil-prone basins of Laptev and Baffin Bay.

Petroleum exploration in the Arctic 2

CanadaExtensive drilling was done in the Canadian Arctic during the 1970s and 1980s by such companies as Panarctic OilsLtd., Petro Canada and Dome Petroleum. After 176 wells were drilled at billions of dollars of cost, approximately1.9 billion barrels (300×106 m3) of oil and 19.8 trillion cubic feet (560×109 m3) of natural gas were found. Thesediscoveries were insufficient to justify development, and all the wells which were drilled were plugged andabandoned.Drilling in the Canadian Arctic turned out to be expensive and dangerous. The geology of the Canadian Arctic turnedout to be far more complex than oil-producing regions like the Gulf of Mexico. It was discovered to be gas pronerather than oil prone (i.e. most of the oil had been transformed into natural gas by geological processes), and most ofthe reservoirs had been fractured by tectonic activity, allowing most of the petroleum which might at one time havebeen present to leak out.

RussiaIn June 2007, a group of Russian geologists returned from a six-week voyage on a nuclear icebreaker 50 Let Pobedy,the expedition called Arktika 2007. They had travelled to the Lomonosov ridge, an underwater shelf in Russia'sremote and inhospitable eastern Arctic Ocean.According to Russia's media, the geologists returned with the "sensational news" that the Lomonosov ridge waslinked to Russian Federation territory, boosting Russia's claim over the oil-and-gas rich triangle. The territorycontained 10bn tonnes of gas and oil deposits, the scientists said.In the early 2012 Russia plans to start the first commercial offshore oil drilling in the Arctic, on Prirazlomnayaplatform in the Pechora Sea.[1] The platform will be the first Arctic-class ice-resistant oil rig in the world.

GreenlandGreenland is believed by some geologists to have some of the world’s largest remaining oil resources.[2] Prospectingis taking place under the auspices of NUNAOIL, a partnership between the Greenland Home Rule Government andthe Danish state. U.S. Geological Survey found in 2001 that the waters off north-eastern Greenland (north and southof the arctic circle) could contain up to 110 billion barrels (17×109 m3) of oil.Greenland has offered 8 license blocks for tender along its west coast by Baffin Bay. Currently 7 of those blockshave been bid for by a combination of multinational oil companies and the National Oil Company NUNAOIL.Companies that have participated successfully in the previous license rounds and have formed a partnership for thelicenses with NUNAOIL are, DONG Energy, Chevron, ExxonMobil, Husky Energy, Cairn Energy. The areaavailable known as the West Disko licensing round is of an interest due to its relative accessibility compared to otherArctic basins as the area remains largely free of ice. As well as a number of promising geological leads and prospectsfrom the Paleocene era.

United States (Alaska)Prudhoe Bay Oil Field on Alaska's North Slope is the largest oil field in North America,[3] The field was discoveredon March 12, 1968, by Atlantic Richfield Company (ARCO) and is operated by BP; partners are ExxonMobil andConocoPhillips Alaska.In September 2012 Shell delayed actual oil drilling in the Chukchi until the following summer due toheavier-than-normal ice and the Arctic Challenger, an oil-spill response vessel, not being ready on time.[4] However,on September 23, Shell began drilling a "top-hole" over its Burger prospect in the Chukchi. And on October 3, Shellbegan drilling a top-hole over its Sivulliq prospect in the Beaufort Sea, after being notified by the Alaska EskimoWhaling Commission that drilling could begin.[5]

Petroleum exploration in the Arctic 3

In September, 2012, Statoil chose to delay its oil exploration plans at its Amundsen prospect in the Chukchi Sea,about 100 miles northwest of Wainwright, Alaska, by at least one year, to 2015 at the earliest.[6]

As of October, 2012, Conoco still plans to drill at its Devil's Paw prospect (part of a 2008 lease buy in the ChukchiSea 120 miles west of Wainwright) in summer of 2013.[7]

October 11, 2012, Dep. Secretary of the Department of the Interior David Hayes stated that support for thepermitting process for Arctic offshore petroleum drilling will continue if President Obama stays in office.[8]

NorwayRosneft and Statoil made the Arctic exploration deal in May 2012. It is the third deal Rosneft has signed in the pastmonth, after Arctic exploration agreements with Italy's Eni and US giant Exxon Mobil.[9]

EnvironmentalGreenpeace have launched the Save the Arctic Project since the melting Arctic is under threat from oil drilling,industrial fishing and conflict.[10]

Geological basins in the Arctic•• North Slope•• Beaufort Sea•• South Arctic Islands•• Franklinian Sendrup•• Baffin Bay•• Labrador Shelf•• Southwest Greenland•• North Greenland•• Kronprins Christian Basin•• West Barents Sea•• East Barents Sea•• North Kara Sea•• South Kara Sea•• Laptev Sea•• East Siberian Sea•• Hope Basin•• North Chukchi Sea•• Pechora Sea

References[1] Prirazlomnaya moves to the Pechora Sea (http:/ / www. sevmash. ru/ rus/ news/ 601-lr-. html) Sevmash official site[2] Overlooking the world's largest island (http:/ / www. cphpost. dk/ get/ 106762. html), The Copenhagen Post, 17 April 2008[3] Prudhoe Bay Fact Sheet (http:/ / www. bp. com/ liveassets/ bp_internet/ us/ bp_us_english/ STAGING/ local_assets/ downloads/ a/

A03_prudhoe_bay_fact_sheet. pdf). BP. August 2006. (Adobe Acrobat *.PDF document)[4] (http:/ / www. popularmechanics. com/ science/ energy/ coal-oil-gas/

everything-you-need-to-know-about-shell-oil-and-arctic-offshore-drilling-in-alaska-10720112?click=pm_news) Everything You Need toKnow About Shell Oil and Arctic Offshore Drilling in Alaska

[5] Shell starts exploratory drilling in Beaufort Sea (http:/ / www. adn. com/ 2012/ 10/ 03/ 2649594/ shell-starts-exploratory-drilling. html)[6] (http:/ / fuelfix. com/ blog/ 2012/ 09/ 04/ statoil-delays-start-of-chukchi-drilling-until-at-least-2015/ ) Statoil Delays Chukchi Exploration[7] Conoco forging ahead with Arctic drilling plans for summer of 2014 (http:/ / www. alaskadispatch. com/ article/

conoco-forging-ahead-arctic-drilling-plans-summer-2014?page=0,0)

Petroleum exploration in the Arctic 4

[8] Interior Dept. official pledges continued support for Arctic drilling (http:/ / www. adn. com/ 2012/ 10/ 11/ 2657646/official-pledges-support-for-arctic. html)

[9] Rosneft and Statoil in Arctic exploration deal (http:/ / www. bbc. co. uk/ news/ business-17974732) 6 May 2012[10] Save Arctic Project Greenpeace (http:/ / www. savethearctic. org/ en/ )

External links• Murray, A. 2006. Arctic offers chilly welcome. E&P, December, 2006 "Arctic Video" (http:/ / www. woodmac.

com/ energy/ arcticvideo)• "Assessment of Undiscovered Oil and Gas in the Arctic" (http:/ / www. sciencemag. org/ content/ 324/ 5931/

1175. full) Science 29 May 2009: Vol. 324 no. 5931 pp. 1175–1179 doi: 10.1126/science.1169467 (http:/ / dx.doi. org/ 10. 1126/ science. 1169467)

Article Sources and Contributors 5

Article Sources and ContributorsPetroleum exploration in the Arctic  Source: https://en.wikipedia.org/w/index.php?oldid=610900249  Contributors: Algkalv, AnAj, Beagel, Bejnar, Bsea, Builtiger, CRKingston, Carcharoth,Clayoquot, Cop 663, DagHjermann, Dexcel, Discospinster, Eaefremov, Edward, Falcanary, Fred Bauder, Gorthian, Greyhood, Jora8488, LlywelynII, Oroso, Ossska, RHaworth, Rjwilmsi,Robindevoe, Robvanvee, Rosiestep, Tedder, Vranak, Vsmith, Watti Renew, Work permit, Yottabytedev, 18 anonymous edits

Image Sources, Licenses and ContributorsImage:ArcticLocationMap2.gif  Source: https://en.wikipedia.org/w/index.php?title=File:ArcticLocationMap2.gif  License: Public Domain  Contributors: USGS

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