Organizing an oil transportation system in the Arctic

Abstract

Development of the Arctic has become the subject of intense attention due to the region’s vast hydrocarbon resources. However, severe environmental conditions and large distances greatly increase the development costs. Because of this, it is crucial to organize rational logistics routes within the Arctic communications system. In recent years, Russia has been taking on a leading role in transportation of hydrocarbons, including oil; there is growing demand from the global community for steady supply of Russian crude oil and petroleum products. At the same time, difficult weather and ice conditions along with poor infrastructure make it a challenge to establish a system for offshore transportation of oil in the Arctic. The paper reviews the Russian experience of sea transportation of oil from the Pechora Sea and the Gulf of Ob, describing a scheme using modern shuttle tankers of reinforced ice class. Apparently, ice tankers of Arc6 and Arc7 classes can be used with virtually no assistance from icebreakers provided that ice conditions are relatively favorable. The unique experience of cooperation in transportation projects accumulated by Russian oil and gas operators, shipping and shipbuilding companies, and financial organizations should prove useful for further development of natural resources of the Arctic.