Ernst & Young provides Arctic assessment

The quest for Arctic oil and gas resources “is not for the faint of heart, nor for those with less-than-deep pockets,” Ernst & Young said in a special report, adding operators confront a harsh climate, limited infrastructure, exceptionally long lead times, and complex logistics for spill containment and recovery. 

The Arctic contains portions of Canada, Denmark, Greenland, Finland, Iceland, Norway, Russia, Sweden, and the US. Costs must be considered in every country, but perhaps less so in Russia, estimated to hold more than half of total Arctic resources, E&Y said in its report entitled “Arctic Oil and Gas.”

Access to existing infrastructure is most favorable in the US, given the Trans-Alaska Pipeline System (TAPS).  Production from the Norwegian Arctic would likely have the easiest access to markets, E&Y said.

The report highlighted five areas:

Russia: Looking forward to 2020, E&Y said OAO Rosneft and OAO Gazprom will remain the main drivers in developing Russia’s continental shelf. Rosneft is expected to target the Barents shelf (including its southeastern part, the Pechora Sea) and Okhotsk Sea, while Gazprom is expected to concentrate on Kara Sea projects.

• Canada: Currently, there is no offshore drilling in Canada’s Arctic and no applications for drilling are pending before the National Energy Board, although a number of companies hold exploration licenses for areas in the Beaufort Sea, E&Y said. An estimated 90 wells were drilled in the Beaufort after exploration drilling began in 1972, but only one well was drilled since 1991. Chevron and Statoil plan to launch a 3D seismic program this year in the Beaufort.

Greenland: The government plans a second licensing round to offer blocks this year in the Greenland Sea and offshore northeast Greenland. Cairn Energy, with interests in eight offshore areas but no commercial discoveries, is evaluating its next steps.     

Norway: The Barents Sea was opened for exploration in 1981, and over the next 30 years Statoil and others developed a strong foothold. Faced with rapidly falling reserves in the North Sea and Norwegian Sea, Norway believes that its hydrocarbon future lies in Barents Sea prospects. Development of the region remains controversial given its environmental sensitivity. Resolution in 2010 of a maritime border dispute between Norway and Russia could see both countries supporting each other in the wider international race over the Arctic, E&Y said. 

US:  The Alaskan Arctic is projected to hold the largest undiscovered Arctic oil deposits: some 30 billion bbl. E&Y said Beaufort Sea production could start as early as 2020, while Chukchi Sea production is unlikely before 2022.  The operator and owners of TAPS are eager to identify the new supplies that will be needed to keep the line economic. TAPS operates at less than half its total capacity because North Slope production has declined.

Meanwhile separately from E&Y’s report, an Arctic Oil Spill Response Technology Joint Industry Program (JIP) is working to expand an existing knowledge base about Arctic offshore oil spill response expertise already developed through 40 years of research by individual companies and other organizations (OGJ Online, Dec. 12, 2012).

                                                 

Related Articles

BHI: US rig count falls 6 units to 857

07/17/2015 The US drilling rig count fell 6 units to reach 857 during the week ended July 17, essentially cancelling out the last 3 weeks’ worth of gains, acc...

Aussie, Timor-Leste regulators terminate Timor Gap permit

07/17/2015 Regulators in Australia and Timor-Leste have now formally terminated Timor Gap production-sharing contract JPDA 06-103, which leaves Australian com...

ENOC trims Turkmen plan in Dragon takeover

07/16/2015 Emirates National Oil Co. Ltd. (ENOC), Dubai, will lower target oil production from the Cheleken area offshore Turkmenistan after acquiring full co...

Mexican round nets two successful bids

07/16/2015 Two of 14 shallow-water blocks received successful bids on July 15 in Mexico’s historic Round One offering of exploration and production rights (OG...

Rosneft, Statoil drill two horizontal wells in pilot at North Komsomolskoye

07/14/2015 OAO Rosneft and Statoil ASA have jointly drilled two horizontal exploitation wells in the PK1 layer of North Komsomolskoye field, Rosneft reported.

MOL completes Ithaca Norge acquisition

07/09/2015 MOL Group, Budapest, has completed its acquisition of Ithaca Petroleum Norge from Ithaca Energy Inc. for $60 million plus possible bonuses of up to...

Stone confirms oil pay with Cardona development well in deepwater gulf

07/08/2015 Stone Energy Corp., Lafayette, La., encountered 288 ft of net pay in two intervals with its Cardona No. 6 development well on Mississippi Canyon Bl...

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


Operating a Sustainable Oil & Gas Supply Chain in North America

When Wed, Oct 7, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.

register:WEBCAST


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected