Petroleum exploration in the Arctic

1
Petroleum exploration in the Arctic
Location of Arctic Basins assessed by the USGS.
The exploration of the Arctic for
petroleum is more technically
challenging than for any other
environment. However, with increases
in technology, continuing high oil
prices and drastic melting of glaciers
and ice due to global warming (making
it easier to drill and explore), the
region is now receiving the interest of
the petroleum industry.
There are 19 geological basins making
up the Arctic region. Some of these
basins have experienced oil and gas
exploration, most notably the Alaska
North Slope where oil was first
produced in 1968 from Prudhoe Bay.
However, only half the basins - such as
the Beaufort Sea and the West Barents
Sea - have been explored.
A 2008 United States Geological
Survey estimates that areas north of the Arctic Circle have 90 billion barrels of undiscovered, technically recoverable
oil (and 44 billion barrels of natural gas liquids ) in 25 geologically defined areas thought to have potential for
petroleum. This represents 13% of the undiscovered oil in the world. Of the estimated totals, more than half of the
undiscovered oil resources are estimated to occur in just three geologic provinces - Arctic Alaska, the Amerasia
Basin, 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 GreenlandEast Canada. It is further
estimated that approximately 84% of the undiscovered oil and gas occurs offshore. The USGS did not consider
economic factors such as the effects of permanent sea ice or oceanic water depth in its assessment of undiscovered
oil and gas resources. This assessment is lower than a 2000 survey, which had included lands south of the arctic
circle.
A recent study carried out by Wood Mackenzie on the Arctic potential comments that the likely remaining reserves
will be 75% natural gas and 25% oil. It highlights four basins that are likely to be the focus of the petroleum industry
in the upcoming years: the Kronprins Christian Basin, which is likely to have large reserves, the southwest
Greenland basin, due to its proximity to markets, and the more oil-prone basins of Laptev and Baffin Bay.
Petroleum exploration in the Arctic
2
Canada
Extensive drilling was done in the Canadian Arctic during the 1970s and 1980s by such companies as Panarctic Oils
Ltd., Petro Canada and Dome Petroleum. After 176 wells were drilled at billions of dollars of cost, approximately
1.9 billion barrels (30010
6
m
3
) of oil and 19.8trillion cubic feet (56010
9
m
3
) of natural gas were found. These
discoveries were insufficient to justify development, and all the wells which were drilled were plugged and
abandoned.
Drilling in the Canadian Arctic turned out to be expensive and dangerous. The geology of the Canadian Arctic turned
out to be far more complex than oil-producing regions like the Gulf of Mexico. It was discovered to be gas prone
rather than oil prone (i.e. most of the oil had been transformed into natural gas by geological processes), and most of
the reservoirs had been fractured by tectonic activity, allowing most of the petroleum which might at one time have
been present to leak out.
Russia
In 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's
remote and inhospitable eastern Arctic Ocean.
According to Russia's media, the geologists returned with the "sensational news" that the Lomonosov ridge was
linked to Russian Federation territory, boosting Russia's claim over the oil-and-gas rich triangle. The territory
contained 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 Prirazlomnaya
platform in the Pechora Sea.
[1]
The platform will be the first Arctic-class ice-resistant oil rig in the world.
Greenland
Greenland is believed by some geologists to have some of the worlds largest remaining oil resources.
[2]
Prospecting
is taking place under the auspices of NUNAOIL, a partnership between the Greenland Home Rule Government and
the Danish state. U.S. Geological Survey found in 2001 that the waters off north-eastern Greenland (north and south
of the arctic circle) could contain up to 110 billion barrels (1710
9
m
3
) of oil.
Greenland has offered 8 license blocks for tender along its west coast by Baffin Bay. Currently 7 of those blocks
have 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 the
licenses with NUNAOIL are, DONG Energy, Chevron, ExxonMobil, Husky Energy, Cairn Energy. The area
available known as the West Disko licensing round is of an interest due to its relative accessibility compared to other
Arctic basins as the area remains largely free of ice. As well as a number of promising geological leads and prospects
from 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 discovered
on March 12, 1968, by Atlantic Richfield Company (ARCO) and is operated by BP; partners are ExxonMobil and
ConocoPhillips Alaska.
In September 2012 Shell delayed actual oil drilling in the Chukchi until the following summer due to
heavier-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, Shell
began drilling a top-hole over its Sivulliq prospect in the Beaufort Sea, after being notified by the Alaska Eskimo
Whaling Commission that drilling could begin.
[5]
Petroleum exploration in the Arctic
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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 Chukchi
Sea 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 the
permitting process for Arctic offshore petroleum drilling will continue if President Obama stays in office.
[8]
Norway
Rosneft and Statoil made the Arctic exploration deal in May 2012. It is the third deal Rosneft has signed in the past
month, after Arctic exploration agreements with Italy's Eni and US giant Exxon Mobil.
[9]
Environmental
Greenpeace 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 to
Know 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
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[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.11751179 doi: 10.1126/science.1169467 (http:/ / dx.
doi. org/ 10. 1126/ science. 1169467)
Article Sources and Contributors
5
Article Sources and Contributors
Petroleum 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 Contributors
Image:ArcticLocationMap2.gif Source: https://en.wikipedia.org/w/index.php?title=File:ArcticLocationMap2.gif License: Public Domain Contributors: USGS
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