The Undiscovered Resourcethe Area Above The Polar Circle Is Held By The Sedimentary Basins And Continental Shelves That Hold Enormous Oil And Natural Gas Resources. Most Of This Location Is Inadequately Checked Out For Oil And Gas; Nevertheless, The United States Geological Study Approximates That The Arctic Includes Approximately 13 Percent Of The World’s Undiscovered Traditional Oil Resources. It Is About 30 Percent Of Its Undiscovered Standard Gas Resources.
This makes the Arctic an exceptionally rich area. It is about the very same geographic size as the African continent – about 6% of Earth’s area – yet it holds an estimated 22 percent of Earth’s oil and gas resource.
Most of the research exploration in the Arctic to-date has taken place on land. This work has led to the Prudhoe Bay Oil Field in Alaska, the Tazovskoye Field in Russia and hundreds of smaller sized fields, some which are on Alaska’s North Slope. Land accounts for about 1/3 of the Arctic’s location and is believed to carry about 16% of the Arctic’s remaining untouched oil and gas resource.
About 1/3 of the Arctic area is continental shelves which have been lightly checked out. The Arctic continental shelf is the largest geographical location on Earth with massive resources that remains practically uncharted. The last remaining 1/3 of the Arctic is the deep ocean waters over 500 meters deep, and this area is unknown.
What are the countries with Jurisdiction of the Arctic? They are
Canada, Denmark (via Greenland), Iceland, Norway, Russia, and the United States.
Unilateral decrees have historically identified Their claims to oil and gas below the Arctic Ocean seafloor; however, the Law of the Sea Convention allows each country a unique financial zone extending 200 miles out from its shoreline. Under specific conditions, the special economic zone can be extended out to 350 miles, if a nation can show that its continental margin extends more than 200 miles beyond its coast. Russia, Canada, and the United States are presently working to define the level of their countries’ boundary.
This provision has led to overlapping territorial conflicts and disagreements over how the edge of the continental margin is specified and mapped. For instance, Russian government claims that their continental margin encompasses the Lomonosov Ridge all the way to the North Pole. In another, both Canada and the United States claim a part of the Beaufort Sea in a location that is thought to contain significant oil and gas resources.
While it is not clear as to who or which country or corporation will be able to extract all those resources of the earth collectively, one thing is for sure, it is not going to be easy. As there are many obsticals to overcome drilling in this remote and inhospitable region. In the next Report, we will tackle how expensive the Oil and Gas Exploration in Arctic Area is.