Arctic Offshore Oil Research Articles

Ignorance and Environmental History: The Opening of an Arctic Offshore Oil Frontier, 1968–1976

Ignorance holds untapped explanatory power for environmental history, in the Arctic and beyond. I define ignorance as a state of limited knowledge, held by groups, and produced through social processes. The case study is the opening of an oil frontier in the Canadian Beaufort Sea between 1968 and 1976. Drawing from a growing body of scholarship on ignorance, as well as newly available governmental and oil industry records, I review three concepts environmental historians can use to analyse the production of ignorance. These concepts are: proprietary knowledge, selective transmission and undone research. Taken together, these concepts make visible a set of political, economic and environmental conditions that allowed ignorance to shape the approval of the first offshore drilling programme in the Canadian Beaufort Sea. Ultimately, this case study demonstrates that ignorance – like its cousins doubt or uncertainty – has been a resource that extractive industries and governmental regulators have manipulated to navigate evolving requirements of environmental planning.

Limited increases in Arctic offshore oil and gas production with climate change and the implications for energy markets

Climate change impacts on sea ice thickness is opening access to offshore Arctic resources. The degree to which these resources are exploited will depend on sea-ice conditions, technology costs, international energy markets, and the regulatory environment. We use an integrated human-Earth system model, GCAM, to explore the effects of spatial–temporal patterns of sea-ice loss under climate change on future Arctic offshore oil and gas extraction, considering interactions with global energy markets and emission reduction scenarios. We find that under SSP5, a “fossil-fueled development” scenario, the effects of sea-ice loss are larger for Arctic offshore oil production than gas. Under SSP5, future extraction of Arctic offshore oil and gas through 2100 adds roughly 0.8–2.6 EJ/year to oil and gas markets but does not have large impacts on global oil and gas markets. Surprisingly, a low-carbon scenario results in greater Arctic offshore oil production to offset the more emissions-intensive unconventional oil production.

Effect of Temperature Conditions in Arctic Offshore Oil Fields on the Rheological Properties of Various Based Drilling Muds

During well drilling in offshore conditions beyond the North of the Arctic Circle, there are often problems associated with deviations in the rheological parameters of the drilling mud as the temperature changes. Mud temperature in the upper part of the well in most cases is in the range up to 20 °C, whereas in the productive formation it is up to 80 °C and more. For such conditions, it is necessary to estimate the influence of temperature on the rheological parameters of drilling fluids, which is done in this paper. Compositions of water-based and hydrocarbon-based muds that may be used in the conditions of the offshore hydrocarbon fields were considered. The paper presents the authors’ formula for a drilling mud that possesses more stable rheological parameters in the temperature conditions of the offshore oil field and is more environmentally friendly. The physical properties of the newly designed drilling mud were measured with laboratory equipment. Rheological investigations were carried out under varying temperatures up to 80 °C. The results of the experiments show the newly designed drilling mud to be more stable than its hydrocarbon-based analogue. Besides, the newly developed composition has a lower content of solid phase, which is also an important parameter for the process of sea wells construction, often characterized by a narrow window of permissible pressure.

Strategic Sustainability of Offshore Arctic Oil and Gas Projects: Definition, Principles, and Conceptual Framework

Exploitation of oil and gas resources in the Arctic offshore is one of Russia’s key priorities in such areas as science, economy, and technology. Global trends, harsh climate conditions, fragile ecosystems, conditions of the pandemic and post-pandemic periods, price volatility, and the growing importance of the environmental factor require that the process of developing the Arctic’s hydrocarbon resources should become strategically sustainable. The paper provides a deep literature review on sustainability issues, sustainable development, strategic sustainability, and project efficiency in the Arctic offshore oil and gas sector. The paper analyzes the trends and conditions that substantiate the need to transform the traditional sustainability concept to meet new challenges and comply with new policies. Based on the analysis, the authors propose a definition of and a conceptual framework for strategic sustainability of oil and gas offshore projects in the Arctic.

Basic Principles (Indicators) for Assessing the Technical and Economic Potential of Developing Arctic Offshore Oil and Gas Fields

Sustainable development of the Arctic is the main priority of the state policy regarding regional development of the Russian Federation. The study of the Arctic zone of the Russian Federation for the formation of principles, methods and strategies, as well as organizational and economic mechanisms for its sustainable development is topical at present. This article deals with one of the strategic decision-making tools used in the process of implementing the development program for the Russian Arctic, namely, the assessment of the technical and economic potential of the Arctic fields. The purpose of this assessment is to rank the fields according to the priority of their commissioning for a more optimal distribution of costs in the development of Arctic resources. This paper presents the results and methodology of technical and economic potential estimation in general, and the potential of the Arctic oil and gas fields in particular. An analysis of the conceptual apparatus in the field of the evaluation of various types of potential is carried out. The methodology for assessing the technical and economic potential of a field are investigated. The problems arising in the process of such an assessment are revealed. Recommendations for improving the methodology of assessing the technical and economic potential of oil and gas fields in the Arctic are given. The necessity of expanding the list of indicators for assessing the technical and economic potential of these fields, taking into account current trends, has been noted. A list of 10 technical and 26 economic indicators to assess the technical and economic potential of the development of offshore Arctic fields is proposed.

Polar Offshore Engineering Equipment: Development Status and Key Technologies

Polar offshore engineering equipment provides a major platform and symbolizes the strength of China to participate in Arctic offshore oil and gas development. Currently, the design, construction, and support capacities of China’s polar offshore engineering equipment are not internationally recognized, which does not match with the large shipbuilding sector of China. In this article, we analyze the development demand for polar offshore engineering equipment in China, present the application status of these equipment, investigate the key technologies, and summarize the existing problems regarding these equipment in China. Furthermore, we propose the establishment of a research and application innovation project of common key technologies for Arctic offshore oil and gas exploration and development, an international research and development center for polar offshore oil and gas engineering technologies, and a China–Russia Arctic energy joint venture company. This study centers on the coordination of the Arctic development and environmental protection capabilities, and aims to provide a reference for developing the polar offshore engineering equipment in China and provide guidance for China’s participation in Arctic oil and gas development.

Arctic oil and gas offshore projects: how to forecast their future

Development of Arctic oil and gas resources is relevant due to the strategic importance of hydrocarbons, as well as Arctic territories as a whole for our country. The prospects for the Arctic shelf are related, first of all, to the development of domestic available mineral resources, the socio-economic development of the Arctic region, the maintenance of innovative activity of Russian industries, the strengthening of international positions of the country, the creation of industrial growth centers in the northern territories. Prospects for Arctic oil and gas resources development remain unclear today due to the high degree of uncertainty about external (especially macroeconomics and politics) and internal (project) environment factors. This fact makes it necessary to develop scientifically sound approaches to predicting the development of the Arctic shelf oil and gas resource. This paper considered the existing forecasts of oil production on the Arctic shelf, highlighted the specific features of forecasting the prospects for Arctic shelf projects implementation, considered the peculiarities of the application of statistical and expert forecasting methods. On the basis of the example of oil price forecasting, as a key indicator affecting the prospects of offshore projects, it was concluded that there are limited possibility of using statistical methods and the need to use expert approaches. It has been determined that in order to create a holistic approach to forecasting the future of Arctic offshore oil and gas projects, a comprehensive algorithm based on the use of existing forecasting methods and their reasonable combination, taking into account the peculiarities of predicted systems and indicators, is necessary.

RATIONALE FOR SELECTION OF AN OIL FIELD OPTIMAL DEVELOPMENT SYSTEM IN THE EASTERN PART OF THE PECHORA SEA AND ITS CALCULATION

Rationale for selection and calculation of the optimal system for the development of the Pechora Sea oil field is an extremely difficult scientific-technical task. Severe climate conditions of the Arctic region, ice cover, well stock formation limits, slow rates of drilling for offshore oil fields, and remoteness from supply bases multiply the cost of projects and create significant difficulties in engineering design the field development system. To solve these problems, one needs to use highly efficient technologies for offshore oil fields development, which will ensure intensive oil production, thus obtaining significant revenues to pay off the expenses. The purpose of this work is to provide the basis for selection as well as calculate the optimum development system for an oil field in the eastern part of the Pechora Sea. The solution of the tasks was carried out on the basis of the features identified in the development of Arctic offshore oil fields, the analysis of geological and physical data on the oil field, a set of theoretical, analytical works, and mathematical modeling. Mathematical modeling was performed using standard and adapted methods for calculating oil field development systems. Based on the data received, it was concluded that it is the linear system of horizontal wells, which is optimal for the field development. Horizontal wells critical and initial flow rate and basic technical indicators have been calculated versus time. The estimation of the discounted cash flow and the discounted profit index has demonstrated that the investment project can be initiated. Since the oil field is now under supplementary exploration, the data obtained in the research can be applied for designing the oil field development system as soon as its industrial exploitation is approved.

Why is exploitation of Arctic offshore oil and natural gas resources ongoing? A multi-level perspective on the cases of Norway and Russia

ABSTRACT The study focuses on the challenging complexity of the energy industry transformation. Despite sustainability and climate concerns the exploitation of conventional oil and natural gas resources is ongoing. We investigate the case of Arctic offshore oil and natural gas resources exploitation through a set of interviews, providing two national examples of Norway and Russia. The study design and methodology are inspired by a multi-level perspective framework (MLP) to large socio-technical systems. We focus on the interaction between the landscape and regime levels of the energy industry. The MLP analysis shows that Norway and Russia act differently under the same landscape factors and adjust on the regime level according to their national goals. We conclude that the landscape level does not shape the regime level equally, which complicates the transformational processes in the energy industry. The paper contributes to the sustainability transitions literature through a rarely investigated case, and suggests theoretical implications regarding the interactions between the regime and landscape levels of MLP. The paper introduces a different analytical perspective for scholars of Arctic studies.

Problem and models of multicriteria decision making and risk assessment of the arctic offshore oil and gas field development

The article is devoted to the systematic solution of problems of multi-criteria assessment and the possibility of implementing projects for the development of hydrocarbon deposits on the Arctic shelf under conditions of uncertainty and risk. Risks are considered in a narrow and broad sense. It is shown that the solution of tasks, in this case, comes down: 1) to a multi-criteria assessment of the quality level of a field based on a hierarchy analysis method that takes into account uncertainties and risks of operating objects through the relevant necessary indicators (criteria); 2) determining, with the help of game theory adopted with the nature of the criteria for selecting the best Bayesian strategies, of development options under both partial and full uncertainty conditions; 3) selection using the rules of the Borda, Pareto and multi-criteria dispersive risk model for choosing the best development strategy.

Russian Arctic Offshore Oil and Gas Projects: Methodological Framework for Evaluating Their Prospects

Russia is one of the key players in the Arctic due to its significant hydrocarbon resources, and the relevance of developing its Arctic offshore deposits is obvious. However, the presence of considerable reserves of oil and gas on the Russian Arctic shelf does not guarantee the success of projects aimed at developing these deposits, since a whole group of contradictory political, macroeconomic, and other factors impacts their initiation and realization. This influence has now intensified with the current problematic macroeconomic situation in Russia, particularly in the energy sector. Furthermore, the current international political scene has a direct impact on Russia’s activities in the field of offshore projects. Economic, geopolitical, climatic, infrastructure, ecological, and other factors create uncertainty in the development of the Arctic oil and gas projects. The development of Arctic territories and shelf deposits, as part of a complex economic system, is subject to numerous disputes. The purpose of this paper is to study the prospects for the implementation of projects for the oil and gas production from offshore Arctic fields. As a result of the research, the work presents a methodology for assessing the prospects of the Arctic oil and gas offshore project which is called TESCIMP methodology. It is based on the TESCIMP analysis, a two-dimensional classification of TESCIMP indicators and the algorithm for selecting TESCIMP factors used in the analysis of specific deposits and choosing one of the projects for its development as the most promising.

Climate change, future Arctic Sea ice, and the competitiveness of European Arctic offshore oil and gas production on world markets

A significant share of the world’s undiscovered oil and natural gas resources are assumed to lie under the seabed of the Arctic Ocean. Up until now, the exploitation of the resources especially under the European Arctic has largely been prevented by the challenges posed by sea ice coverage, harsh weather conditions, darkness, remoteness of the fields, and lack of infrastructure. Gradual warming has, however, improved the accessibility of the Arctic Ocean. We show for the most resource-abundant European Arctic Seas whether and how a climate induced reduction in sea ice might impact future accessibility of offshore natural gas and crude oil resources. Based on this analysis we show for a number of illustrative but representative locations which technology options exist based on a cost-minimization assessment. We find that under current hydrocarbon prices, oil and gas from the European offshore Arctic is not competitive on world markets.

Canadian Arctic Offshore Oil and Natural Gas and European Union Energy Diversification: Towards a New Perspective?

Events shape and in turn are shaped by developments in Arctic ocean policy. Nowhere is this truer than of the ever-changing Arctic environment, which is in turn shaping and being shaped by a global demand for secure sources of future oil and natural gas supplies. As the polar ice cap progressively shrinks, and industry interest in the Arctic quickens, Canadians are confronting the challenges of developing their Arctic hydrocarbon resources. In Canada these conflicting objectives have led to innovative regulatory policies accommodating stakeholder desires on the one hand and environmental and economic considerations on the other. The European Union (EU) similarly has multiple objectives intersecting with its Arctic interests.

Arctic Offshore Oil: Great Risks in an Evolving Ocean

Climate change has created unexpected tipping points in the contemporary history of the Arctic. Diminishing summer sea ice has encouraged energy companies to plan for an expansion of Arctic offshor...

Modernisation of the Russian Energy Sector: Constraints on Utilising Arctic Offshore Oil Resources

This essay examines the modernisation of the Russian energy sector as revealed in the case of Arctic offshore oil. The Russian actors involved have various interests but their simultaneous realisation is impeded by the structural constraints within the policy environment of Arctic offshore oil projects. Russia’s foreign policy choices vis-à-vis Ukraine, leading to sanctions targeting Arctic oil projects, and global oil market developments amplify the constraints on the resource geographical, financial, institutional and ecological dimensions of the policy environment or structure. This delays Arctic offshore oil projects, and hampers the oil industry’s modernisation and its capacity to generate income for Russia’s overall modernisation.

Marine biodegradation of crude oil in temperate and Arctic water samples

Despite increased interest in marine oil exploration in the Arctic, little is known about the fate of Arctic offshore oil pollution. Therefore, in the present study, we examine the oil degradation potential for an Arctic site (Disko Bay, Greenland) and discuss this in relation to a temperate site (North Sea, Denmark). Biodegradation was assessed following exposure to Oseberg Blend crude oil (100mgL−1) in microcosms. Changes in oil hydrocarbon fingerprints of polycyclic aromatic hydrocarbons (PAHs), alkyl-substituted PAHs, dibenzothiophenes, n-alkanes and alkyltoluenes were measured by gas chromatography-mass spectrometry (GC–MS). In the Disko Bay sample, the degradation order was n-alkanes>alkyltoluenes (para->meta->ortho-isomers)>PAHs and dibenzothiophenes, whereas, the degradation order in the North Sea samples was PAHs and dibenzothiophenes>alkyltoluenes>n-alkanes. These differences in degradation patterns significantly affect the environmental risk of oil spills and emphasise the need to consider the specific environmental conditions when conducting risk assessments of Arctic oil pollution.

The European Union's Potential Contribution to Enhanced Governance of Offshore Oil and Gas Operations in the Arctic

This article focuses on the potential contribution of the European Union (EU) to an enhanced legal regime for Arctic offshore oil and gas operations. It first briefly describes existing international law for the regulation of offshore oil and gas operations in the Arctic. The article then discusses the development of the EU's Arctic policy and the EU's competence to regulate Arctic offshore oil and gas activities. Subsequently, it analyses potential actions and initiatives that could be taken by the EU to promote high safety standards for offshore oil and gas operations in the Arctic.

Efficiency Assessment of Economic International Cooperation in Development of Arctic Offshore Oil and Gas Resources

The research is focused on efficiency assessment of economic cooperation in development of Arctic offshore oil and gas resources. The author developed an economic model based on cost-benefit analysis (CBA). CBA is used in some countries (EU, USA, Australia) as an analytic tool to make public policy decisions. CBA is based on the method of discounting cash flows associated with costs and benefits of public policy. It is assumed that all public goals are equally important inter alia, hence public bodies should opt for those initiatives that maximize public benefits for every dollar spent from the state budget. There are five stages of economic modeling: 1) the definition of public benefits and costs associated with the public initiative; 2) monetary valuation of costs and benefits; 3) the definition of discounting period and discounting rate; 4) the calculation of net present value of cash flows; 5) the comparison of initiatives' net present values. The model is built with a number of hypotheses assumed. It allows making evaluation of investments into the technology to decrease the cost of Arctic offshore oil and gas development. Moreover, the model has two scenarios describing a public policy to support technology development with international economic cooperation and without it. Under given hypotheses both scenarios return positive net present value of policies which proves that governmental initiative to support Arctic technology development is economically justified. Also the model sows that the scenario with international cooperation is more efficient from economic point of view. It is explained by two factors: the higher speed of technology transfer (due W international cooperation) and the opportunity to use financial leverage (attracting the funds from foreign partners). The model allows closing the existing scientific gap between the theory of CBA method and its practical use in public decision making.

Fragmented International Governance of Arctic Offshore Oil: Governance Challenges and Institutional Improvement

The governance architecture in the Arctic region is subject to broad public and academic debate. Existing governance arrangements are not considered sufficient to minimize risks and impacts from Arctic offshore oil activities. These governance arrangements are fragmented between law of the sea norms, numerous regulatory conventions, and non-legally binding guidelines produced by the Arctic Council, an informal body of the eight Arctic states. While the benign form of cooperative fragmentation seems to prevail, specific governance challenges exist. The nature of these governance challenges and political feasibility considerations suggest an enabling joint management approach for the architecture of Arctic governance.

Of whales and oil: Inuit resource governance and the Arctic Council

ABSTRACTThis article takes a normative approach to explore what and how we might learn from existing indigenous governance arrangements in the Arctic and how they may contribute to the larger debates over Arctic governance and who decides. It begins with a brief exploration of the existing literature regarding co-management; particularly what some legal scholars have defined as post-Westphalian resource management as well as engaging ongoing discussions about co-management as it pertains to the Arctic. It then turns to the Alaska Eskimo Whaling Commission (AEWC) as a case study and possible starting point for governing newly emerging resource management issues in the Arctic. Specifically, this article will look at how the governance framework of the AEWC might be applicable for the current governance discussions regarding Arctic offshore oil and gas development. Lastly, this paper will offer preliminary reflections as to how a post-sovereign resource management approach could contribute to the broader theoretical debates concerning who owns the Arctic and who decides. Specifically it offers one possible way to envisage the future of a strengthened Arctic Council operating in a world where states are not the only actors participating in the governance of the Arctic.