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Arctic Oil and Gas

EY has issued a report on Arctic oil and gas analyzing challenges to Arctic resource recovery and providing information about recent area activity and perspectives. The region above the Arctic Circle accounts for only about 6% of the Earth's surface area, but it could account for as much as 20% of the world's undiscovered but recoverable oil and natural gas resources. The existence of hydrocarbon resources in the Arctic has been known for decades, but only in recent years has the opening to full-scale resource development and navigation - such as the fabled Northwest Passage that would connect the Atlantic and Pacific Oceans, or the Northern Sea Route that will connect Europe and western Russia with eastern Russia and Asian markets - become technically and economically feasible. In 2008, the United States Geological Survey (USGS) released the first-ever wide-ranging assessment of Arctic oil and gas resources, estimating the region's undiscovered and technically recoverable conventional oil and natural gas resources. Image Credit: EY report on Arctic oil and Gas, page 3   The USGS study estimated that the Arctic could hold about 13% of the world's undiscovered oil reserves and as much as 30% of the world's undiscovered natural gas reserves. Allocating the ...

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