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Arctic

Sea of uncertainty

With a mean estimate of 23.6 billion bbl of undiscovered, technically recoverable conventional oil in the Beaufort and Chukchi seas, the Arctic could be one of the last big ? nds.

Heather Saucier examines what is at stake on the US side. hile the melting of Arctic ice poses serious consequences

W to the planet, it also opens up vast amounts of ocean for exploration in an area believed to contain some of the world’s last remaining large oil ? elds.

The US Department of the Interior 27 January issue of the White House blog.

The DOI is most concerned with (DOI) announced new lease sales off protecting areas that are home to endan-

Alaska’s coast, including areas in the gered whales, in addition to walruses and

Beaufort and Chukchi seas. However, it bearded seals that feed on the biologically- also made other areas in those locations rich Hanna Shoal, as well as the more than off-limits from exploration, and followed 40 species of ? sh that support Alaska’s ? sh- with stricter exploratory drilling regula-

Source: US Bureau of Ocean Energy Management ermen. Also of importance are the bowhead tions. As the federal government strives to whales, which are essential to the subsis- “We know we have a tremendously ? nd a balance between tapping additional for Arctic exploration, the federal tence and customs of native Alaskans. active petroleum system. But our under- energy resources and protecting Alaskan government unveiled in January an standing of what resources are actually offshore lease program for 2017-2022 frontiers, its efforts have cast the concept “There is a perceived dichotomy there is fairly limited because there’s that includes additional blocks in the of economical Arctic exploration – during between resource development and been little exploration done in these Beaufort and Chukchi seas. The acreage a time of mercurial oil prices, no less – maintaining strict environmental protec- areas,” says Swenson, of Alaska’s Outer has not yet been determined. into a sea of uncertainty. tion. Most Alaskans understand the

Continental Shelf (OCS) and the Arctic Also in January, President Obama need to maintain both and appreciate

Guessing game

National Wildlife Refuge, which has been designated 9.8 million acres in the Arctic both sides of the debate,” Swenson says. subject to tight federal regulations for OCS as off-limits to future leasing and The US Bureau of Ocean Energy “However, with strict stewardship, both decades. exploration. The acreage includes sub- Management (BOEM) estimates that should be maintained.” “This has always been frustrating to sistence whaling areas near the Inupiat in terms of undiscovered, technically As a resource state, Alaska has essen- people who want to understand what villages of Barrow and Kaktovik in the recoverable conventional resources, the tially funded all government activities resources we have,” he adds. “We have a Beaufort Sea, a 25mi coastal buffer from Beaufort Sea contains anywhere from from resource development, fair understanding of what our reservoir Point Hope to just east of Barrow in the 0.4-23.2 billion bbl of oil and 0.6 to 72.2 with the oil and gas industry rocks might look like, but they are all Chukchi Sea, and – perhaps most valu- Tcf of gas (95 to 5% probabilities). Its as its biggest taxpayer. And, based on models, and we have little data able to the oil and gas industry – the neighbor, the Chukchi Sea, is estimated industry eyes remain focused to base the models on.” Hanna Shoal in the Chukchi Sea. to contain anywhere from 2.3-40.1 billion on the Arctic and its remain-

Until more information can be “Even as we consider new places bbl of oil and 10.3 to 209.5 Tcf of gas (95 ing potential for abundant oil obtained, the roughly 12 operators, which that may be appropriate to responsibly to 5% probabilities). and gas resources.

hold 607 active leases in the Beaufort and develop oil and gas, we can take meaning- If those ranges seem broad, it is due to Unlike areas such as the

Chukchi seas, are there for the respective ful steps to protect areas that matter most the lack of understanding about exist- Powder River Basin or the estimated means of 8.2 billion bbl and for our environment, our native commu- ing Arctic resources, says Bob Swenson, Bakken Formation where a 15.4 billion bbl of undiscovered, techni- nities, and our cultural identity,” wrote retired deputy commissioner of the discovery of 5-10 MMbbl of cally recoverable oil.

Mike Boots, leader of the White House Department of Natural Resources in oil in place would be consid-

Council on Environmental Quality, and Alaska and former state geologist for ered “signi? cant,” Swenson

Finding a balance

Dan Utech, deputy assistant to the presi- the Alaska Division of Geological & says those same numbers

In an effort to expand offshore areas dent for Energy and Climate Change, in a Geophysical Surveys. would equate to an economic

June 2015 | OE oedigital.com 50 050_OE0615_Geo1_Heather.indd 50 5/31/15 9:22 PM