The Role of Research Associations In Frontier Exploration Arctic Petroleum Operators'' Association (APOA) And Eastcoast Petroleum Operators'' Association (EPOA)

Abstract

Abstract INTRODUCTION By the late sixties, oil and gas exploration was active in the Mackenzie Delta on the fringes of the Arctic Ocean. Although oil had been flowing at Norman Wells for nearly sixty years, the early delta exploration had achieved only modest success and several companies, notably Imperial Oil Ltd., had taken out exploration permits covering the shallow inshore waters of the Beaufort Sea. Late in 1969, government regulations attempted to stimulate the move to the offshore by means of a sale of Beaufort Sea "bonus" blocks, which would virtually oblige the block-holders to find ways and means to drill in the Arctic offshore. Simultaneously, in the High Arctic, Global Marine Arctic Ltd. had taken out permits in 1967 covering extensive areas of the deep waters of the inter-island areas and was working on offshore environmental and operating concerns. By 1969, Panarctic had been active for two years and had made a significant gas discovery onshore in a field which clearly extended offshore. Engineers and explorationists of the oil industry reached the end of the sixties with common concerns to learn more about the Arctic offshore environment and how to devise operating methods and equipment to cope with it safely and efficiently. In such matters, it was clear that cooperative research rather than many separate competitive efforts would make sense, particularly because of the high costs and short operating seasons of many Arctic endeavours. It was in such circumstances that several of the Mackenzie Delta and Beaufort Sea permit holders, together with others who were bidding in the forthcoming "bonus" block and permit sale, decided to join together to tackle some of the research· challenges which they were all encountering, and where there was no reason for secrecy. Accordingly, in January 1910, the Arctic Petroleum Operators" Association (APOA) was born, just a few weeks before the awarding of the "bonus" blocks by the federal authorities. The Association was headed at first by Chairman Alex Hemstock, along with several Imperial Oil colleagues who had been early pioneers in the Lower Mackenzie Valley. The vice-chairman was Ed Lakusta of Gulf, another company which had already been drilling in the delta. Meanwhile, in the Arctic Islands, thought had been given to forming a regional research-oriented association, but with the advent of APOA in the Beaufort Sea – Mackenzie Delta, it seemed wise to join forces with the new association. Accordingly, APOA"s charter was enlarged to include other Arctic areas, and companies such as Panarctic and Global Marine joined the Association. By the end of 1970, more than twenty companies had become members of the new body. Early Beaufort Research During the early months of Beaufort research through APOA, industry attempted to obtain some preliminary answers regarding the strength of sea-ice, its motion during the winter and spring, the pattern of the sea currents and the composition of the bottom sediments. On the basis of these preliminary results, companies could begin to plan with more confidence and could design follow-up experiments.