Survey Reveals 90bn Barrels of Arctic Oil

AROUND 90 billion barrels of oil and a third of the world’s undiscovered natural gas lie beneath an area north of the Arctic Circle, according to a new survey.

It accounts for about a fifth of the world’s recoverable oil and natural gas reserves; 13% of the oil, 30% of natural gas and 20% of natural gas liquids.

The US Geological Survey called the region, which includes parts of the United States, Russia and Canada, “the largest unexplored prospective area for petroleum remaining on Earth”.

At today’s current consumption rate of 86 million barrels a day, the yet-to-be-tapped oil in the Arctic would supply global demand for three years.

Pursuing it is sure to be controversial with environmental groups that want to protect the pristine wilderness and the area’s endangered species.

The oil is considered “technically recoverable” using existing technology, but the survey did not consider the cost of overcoming obstacles to drilling, such as permanent sea ice or deep ocean waters.

Melting caused by global warming has opened up some areas that were previously considered too difficult to reach. Oil companies have already spent billions to secure leases to explore some of the uncharted waters.

“Before we can make decisions about our future use of oil and gas and related decisions about protecting endangered species, native communities and the health of our planet, we need to know what’s out there,” USGS Director Mark Myers said.

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