Petroleum exploration in the Arctic
Encyclopedia
The exploration of the Arctic
for petroleum
is more technically and physically challenging than for any other environment. However, with increases in technology and continuing high oil prices the region is now receiving the interest of the petroleum industry
.
There are 19 geological basin
s 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 Greenland–East 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
.
, Petro Canada and Dome Petroleum
. After 176 wells were drilled at billions of dollars of cost, approximately 1.9 Goilbbl of oil and 19.8 Tcuft 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.
n geologist
s 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
. The platform will be the first Arctic-class ice-resistant oil rig
in the world.
is believed by some geologists to have some of the world’s largest remaining oil resources. 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 Goilbbl 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.
Arctic
The Arctic is a region located at the northern-most part of the Earth. The Arctic consists of the Arctic Ocean and parts of Canada, Russia, Greenland, the United States, Norway, Sweden, Finland, and Iceland. The Arctic region consists of a vast, ice-covered ocean, surrounded by treeless permafrost...
for petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
is more technically and physically challenging than for any other environment. However, with increases in technology and continuing high oil prices the region is now receiving the interest of the petroleum industry
Petroleum industry
The petroleum industry includes the global processes of exploration, extraction, refining, transporting , and marketing petroleum products. The largest volume products of the industry are fuel oil and gasoline...
.
There are 19 geological basin
Oceanic basin
Hydrologically, an oceanic basin may be anywhere on Earth that is covered by seawater, but geologically ocean basins are large geologic basins that are below sea level...
s making up the Arctic region. Some of these basins have experienced oil and gas exploration, most notably the Alaska North Slope
Alaska North Slope
The Alaska North Slope is the region of the U.S. state of Alaska located on the northern slope of the Brooks Range along the coast of two marginal seas of the Arctic Ocean, the Chukchi Sea being on the western side of Point Barrow, and the Beaufort Sea on the eastern.The region contains the...
where oil was first produced in 1968 from Prudhoe Bay. However, only half the basins - such as the Beaufort Sea
Beaufort Sea
The Beaufort Sea is a marginal sea of the Arctic Ocean, located north of the Northwest Territories, the Yukon, and Alaska, west of Canada's Arctic islands. The sea is named after hydrographer Sir Francis Beaufort...
and the West Barents Sea
Barents Sea
The Barents Sea is a marginal sea of the Arctic Ocean, located north of Norway and Russia. Known in the Middle Ages as the Murman Sea, the sea takes its current name from the Dutch navigator Willem Barents...
- have been explored.
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
Kronprins Christian Basin
Kronprins Christian basin is a region offshore northeastern Greenland. The region is especially known for its possible large resources of petroleum, with prospective resources of over 10 billion barrels of oil equivalent...
, which is likely to have large reserves, the southwest Greenland
Greenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...
basin, due to its proximity to markets, and the more oil-prone basins of Laptev
Laptev Sea
The Laptev Sea is a marginal sea of the Arctic Ocean. It is located between the northern coast of Siberia, the Taimyr Peninsula, Severnaya Zemlya and the New Siberian Islands. Its northern boundary passes from the Arctic Cape to a point with co-ordinates of 79°N and 139°E, and ends at the Anisiy...
and Baffin Bay
Baffin Bay
Baffin Bay , located between Baffin Island and the southwest coast of Greenland, is a marginal sea of the North Atlantic Ocean. It is connected to the Atlantic via Davis Strait and the Labrador Sea...
.
Canada
Extensive drilling was done in the Canadian Arctic during the 1970s and 1980s by such companies as Panarctic Oils Ltd.Panarctic Oils Ltd.
Panarctic Oils was formed in 1968 as a result of the Canadian government's eagerness to encourage exploration of the Canadian Arctic islands and to assert Canadian sovereignty in the region. That company consolidated the interests of 75 companies and individuals with Arctic Islands land holdings...
, Petro Canada and Dome Petroleum
Dome Petroleum
Dome Petroleum Limited was a Calgary-based petroleum producer in the Alberta oilfields. Jack Gallager joined a group of investors in Dome Exploration Ltd. in 1950 and built it into the major Canadian oil company Dome Petroleum Limited . Gallagher was the sole employee for the first two years...
. After 176 wells were drilled at billions of dollars of cost, approximately 1.9 Goilbbl of oil and 19.8 Tcuft 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
Gulf of Mexico
The Gulf of Mexico is a partially landlocked ocean basin largely surrounded by the North American continent and the island of Cuba. It is bounded on the northeast, north and northwest by the Gulf Coast of the United States, on the southwest and south by Mexico, and on the southeast by Cuba. In...
. 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 RussiaRussia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n geologist
Geologist
A geologist is a scientist who studies the solid and liquid matter that constitutes the Earth as well as the processes and history that has shaped it. Geologists usually engage in studying geology. Geologists, studying more of an applied science than a theoretical one, must approach Geology using...
s returned from a six-week voyage on a nuclear
Nuclear propulsion
Nuclear propulsion includes a wide variety of propulsion methods that fulfil the promise of the Atomic Age by using some form of nuclear reaction as their primary power source.- Surface ships and submarines :...
icebreaker
Icebreaker
An icebreaker is a special-purpose ship or boat designed to move and navigate through ice-covered waters. Although the term usually refers to ice-breaking ships, it may also refer to smaller vessels .For a ship to be considered an icebreaker, it requires three traits most...
50 Let Pobedy, the expedition called Arktika 2007
Arktika 2007
Arktika 2007 was a 2007 expedition in which Russia performed the first ever crewed descent to the ocean bottom at the North Pole, as part of research related to the 2001 Russian territorial claim, one of many territorial claims in the Arctic, made possible, in part, because of Arctic shrinkage...
. They had travelled to the Lomonosov ridge
Lomonosov Ridge
The Lomonosov Ridge is an unusual underwater ridge of continental crust in the Arctic Ocean. It spans 1800 km from the New Siberian Islands, as it is part of Eurasia, over the central part of the ocean to Ellesmere Island of the Canadian Arctic Archipelago. The width of the Lomonosov Ridge varies...
, an underwater shelf in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's remote and inhospitable eastern Arctic Ocean
Arctic Ocean
The Arctic Ocean, located in the Northern Hemisphere and mostly in the Arctic north polar region, is the smallest and shallowest of the world's five major oceanic divisions...
.
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
Oil
An oil is any substance that is liquid at ambient temperatures and does not mix with water but may mix with other oils and organic solvents. This general definition includes vegetable oils, volatile essential oils, petrochemical oils, and synthetic oils....
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
Pechora Sea
Pechora Sea , is a sea at the northwest of Russia, the southeastern part of the Barents Sea. The western border of the sea is off Kolguyev Island, while the eastern border is the western coasts of Vaygach Island and the Yugorsky Peninsula, and the northern border the southern end of Novaya...
. The platform will be the first Arctic-class ice-resistant oil rig
Oil platform
An oil platform, also referred to as an offshore platform or, somewhat incorrectly, oil rig, is a lаrge structure with facilities to drill wells, to extract and process oil and natural gas, and to temporarily store product until it can be brought to shore for refining and marketing...
in the world.
Greenland
GreenlandGreenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...
is believed by some geologists to have some of the world’s largest remaining oil resources. Prospecting is taking place under the auspices of NUNAOIL
NUNAOIL
Nunaoil is the national oil company of Greenland founded in 1985 as an equal partnership between the Greenland Home Rule Government and DONG Energy...
, a partnership between the Greenland Home Rule Government
Politics of Greenland
Politics of Greenland takes place in a framework of a parliamentary representative democratic Danish dependency, whereby the Prime Minister is the head of government, and of a multi-party system. Greenland is a self-governing overseas administrative division of Denmark since 1979. Executive power...
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 Goilbbl of oil.
Greenland has offered 8 license blocks for tender along its west coast by Baffin Bay
Baffin Bay
Baffin Bay , located between Baffin Island and the southwest coast of Greenland, is a marginal sea of the North Atlantic Ocean. It is connected to the Atlantic via Davis Strait and the Labrador Sea...
. Currently 7 of those blocks have been bid for by a combination of multinational oil companies and the National Oil Company NUNAOIL
NUNAOIL
Nunaoil is the national oil company of Greenland founded in 1985 as an equal partnership between the Greenland Home Rule Government and DONG Energy...
. Companies that have participated successfully in the previous license rounds and have formed a partnership for the licenses with NUNAOIL are, DONG Energy, Chevron
Chevron Corporation
Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California, United States and active in more than 180 countries. It is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and production; refining,...
, ExxonMobil
ExxonMobil
Exxon Mobil Corporation or ExxonMobil, is an American multinational oil and gas corporation. It is a direct descendant of John D. Rockefeller's Standard Oil company, and was formed on November 30, 1999, by the merger of Exxon and Mobil. Its headquarters are in Irving, Texas...
, Husky Energy, Cairn Energy
Cairn Energy
Cairn Energy plc is a global oil and gas exploration company headquartered in Edinburgh, United Kingdom. It has operational interests in Albania, Bangladesh, Greenland, India, Nepal and Tunisia and produces around 33,000 barrels of oil equivalent per day...
. 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
Paleocene
The Paleocene or Palaeocene, the "early recent", is a geologic epoch that lasted from about . It is the first epoch of the Palaeogene Period in the modern Cenozoic Era...
era.
Geological basins in the Arctic
- North SlopeAlaska North SlopeThe Alaska North Slope is the region of the U.S. state of Alaska located on the northern slope of the Brooks Range along the coast of two marginal seas of the Arctic Ocean, the Chukchi Sea being on the western side of Point Barrow, and the Beaufort Sea on the eastern.The region contains the...
- Beaufort SeaBeaufort SeaThe Beaufort Sea is a marginal sea of the Arctic Ocean, located north of the Northwest Territories, the Yukon, and Alaska, west of Canada's Arctic islands. The sea is named after hydrographer Sir Francis Beaufort...
- South Arctic Islands
- Franklinian Sendrup
- Baffin BayBaffin BayBaffin Bay , located between Baffin Island and the southwest coast of Greenland, is a marginal sea of the North Atlantic Ocean. It is connected to the Atlantic via Davis Strait and the Labrador Sea...
- Labrador Shelf
- Southwest Greenland
- North GreenlandGreenlandGreenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...
- Kronprins Christian BasinKronprins Christian BasinKronprins Christian basin is a region offshore northeastern Greenland. The region is especially known for its possible large resources of petroleum, with prospective resources of over 10 billion barrels of oil equivalent...
- West Barents SeaBarents SeaThe Barents Sea is a marginal sea of the Arctic Ocean, located north of Norway and Russia. Known in the Middle Ages as the Murman Sea, the sea takes its current name from the Dutch navigator Willem Barents...
- East Barents SeaBarents SeaThe Barents Sea is a marginal sea of the Arctic Ocean, located north of Norway and Russia. Known in the Middle Ages as the Murman Sea, the sea takes its current name from the Dutch navigator Willem Barents...
- North Kara Sea
- South Kara Sea
- Laptev SeaLaptev SeaThe Laptev Sea is a marginal sea of the Arctic Ocean. It is located between the northern coast of Siberia, the Taimyr Peninsula, Severnaya Zemlya and the New Siberian Islands. Its northern boundary passes from the Arctic Cape to a point with co-ordinates of 79°N and 139°E, and ends at the Anisiy...
- East Siberian SeaEast Siberian SeaThe East Siberian Sea is a marginal sea in the Arctic Ocean. It is located between the Arctic Cape to the north, the coast of Siberia to the south, the New Siberian Islands to the west and Cape Billings, close to Chukotka, and Wrangel Island to the east...
- Hope BasinHope BasinThe Hope Basin is a geological feature of the Chukchi Sea Shelf. It lies off the Chukchi Sea coast of Alaska. Its area extends from the outer continental shelf of the Seward Peninsula for about westwards off the coast of Chukotka towards Wrangel Island....
- North Chukchi Sea
- Pechora SeaPechora SeaPechora Sea , is a sea at the northwest of Russia, the southeastern part of the Barents Sea. The western border of the sea is off Kolguyev Island, while the eastern border is the western coasts of Vaygach Island and the Yugorsky Peninsula, and the northern border the southern end of Novaya...
See also
- Territorial Claims in the ArcticTerritorial claims in the ArcticUnder international law, no country currently owns the North Pole or the region of the Arctic Ocean surrounding it. The five surrounding Arctic states, Russia, the United States, Canada, Norway and Denmark , are limited to an exclusive economic zone of adjacent to their coasts.Upon ratification...
- Arctic Refuge drilling controversyArctic Refuge drilling controversyThe question of whether to drill for oil in the Arctic National Wildlife Reserve has been an ongoing political controversy in the United States since 1997...
- Natural resources of the ArcticNatural resources of the ArcticNatural resources of the Arctic are the mineral and animal resources within the Arctic region that provide or have potential to provide utility or economic benefit to humans...
- Arctic cooperation and politicsArctic Cooperation and PoliticsArctic cooperation and politics are partially coordinated via the Arctic Council, composed of the eight Arctic nations of the United States of America, Canada, Iceland, Norway, Sweden, Finland, Russia, and Denmark with Greenland and The Faroe Islands...
External links
- Murray, A. 2006. Arctic offers chilly welcome. E&P, December, 2006 "Arctic Video"
- "Assessment of Undiscovered Oil and Gas in the Arctic" Science 29 May 2009: Vol. 324 no. 5931 pp. 1175-1179 DOI: 10.1126/science.1169467