Exploration for petroleum in the Arctic is expensive and challenging both technically and logistically. In the offshore, sea ice can be a major factor.[1] There have been many discoveries of oil and gas in the several Arctic basins that have seen extensive exploration over past decades but distance from existing infrastructure has often deterred development. Development and production operations in the Arctic offshore as a result of exploration have been limited, with the exception of the Barents and Norwegian seas. In Alaska, exploration subsequent to the discovery of the Prudhoe Bay oilfield has focussed on the onshore and shallow coastal waters.
Technological developments such as Arctic class tankers for Liquefied Natural Gas, and climatic changes leading to reduced sea ice, may see a resurgence of interest in the offshore Arctic should high oil and gas prices be sustained and environmental concerns mitigated.
Since the onset of the 2010s oil glut in 2014, and, in North America particularly, the widespread development of shale gas and oil depressed prices. Consequently commercial interest in exploring many parts of the Arctic has declined.[1][2]
- ^ a b Gulas, Sarah; Downton, Mitchell; D'Souza, Kareina; Hayden, Kelsey; Walker, Tony R. (January 2017). "Declining Arctic Ocean oil and gas developments: Opportunities to improve governance and environmental pollution control". Marine Policy. 75: 53–61. doi:10.1016/j.marpol.2016.10.014.
- ^ Josephine, Mason (31 October 2017). "Greenland Will Offer Oil, Gas Concessions Next Year-Minister". Rigzone. Retrieved 2017-10-31.