By Claudia Jeffrey

It has been expected that there are 90 billion oil barrels discovered so far in the arctic region. It is relatively equal to 6% of the overall known reserves of oil in the world. As compared to oil, natural gas has more potential. Where oil is only 6% of the total reserves of oil, natural gas is more than 24% of the overall world’s known gas reserves.

In this blog, we will discuss the key points which are more than a challenge for drilling of arctic oil. Also, you will find some opportunities by which these challenges can be overcome efficiently.

How Arctic Oil Drilling Is More Than a Challenge

Despite much potential of oil and gas in the region, extraction and drilling are difficult. In fact, it is more than a challenge. One of the major causes of these challenges is that ice of the arctic is melting with record speed day by day.

Companies invest where there is less expenditure, and the outcome is more significant. Here, major quantity is found to be shale oil and gas, which can only be obtained by unconventional methods.

Unconventional methods and techniques require much cost and time.

It is also a fact that there is a lot of area of the arctic, which is poorly explored for oil and gas purposes. So, why companies will drill where cost is bigger, and profit is less?

However, you have always heard that nothing is impossible in this world. Due to the advent of technology and the latest techniques, many impossible things have been sorted out.

Let’s have some eye on the reasons which are problematic for oil drilling in the arctic region.

a) Lengthy Process

If we go through the recent history of the exploration and drilling in the arctic region, we will find many incidents. Due to which, the state government introduced strict rules and regulations for the permit of exploration and drilling in the region. Amongst those requirements, some were, the company was liable to submit detailed reports on how it will avoid oil spill and if oil will spill out then how it will clean it, how it will protect native animals, and many more.

b) Environmental Health Issues

One of the main challenges for the companies in the environmental and health issues which will arise during and after the drilling. It has already been observed that there is a higher amount of nitrogen dioxide and some other gases in the air. It is a major challenge for the companies to present air modeling and prevention methods to the government that the drilling will occur without health compromisation for the people of the arctic region.

Drilling in the Arctic will also impact on the domestic animals, especially polar bears. They are already at risk due to the changing climate because of the eruption of the ozone layer. Toxins produced by drilling will further make their prey poisonous.

c) Spill Cleanup is Impossible

The spokesman of Greenpeace Ben Stewart had said that oil spill cleanup is impossible in the arctic.

Due to the harsh climate of the region like low wind, thrilling cold, unavailability of natural light, and low visibility have made this process near to impossible. However, companies can work on oil spill risks and can get better outcomes.

The oil spill is dangerous to marine life as well because it can cause toxins like mercury, lead, and arsenic. These toxins will be exposed to the oceanic waters. Hence, it is of utmost important to take necessary steps to prevent marine life from this danger.

d) Rising Debate

The critic is increasing day by day as arctic is a dangerous location to drill, and conventional oil is getting distinct. The rise in cost due to the involvement of many amounts of restrictions and time has made this topic headline. Companies are being damaged in terms of reputation as no company is going to prefer to drill in the Arctic due to such challenges.

“Moving to build up this oil…would be encouraging our dependence on petroleum products when we ought to be centered around creating and moving perfect, modest and proficient types of sustainable power source into the standard,” said Cindy Shogan, official chief of the Alaska Wilderness League.

How to Overcome Those Issues In 2020

There isn’t any single approach that fits all the challenges. You can derive lessons from the incidents and experiences from the oil and gas companies. However, there are many ways to overcome arctic drilling challenges.

• The companies which are currently working in the region can address the cost-effective ways, safe techniques, and efficient steps to overcome upcoming hurdles in the drilling process.
• To avoid the lengthy process, the government should provide long term lease for the arctic region, where situations are worst, which limits the activities for production and exploration to few months, like three to four months in a whole year.
• It is important to develop cooperation between private companies and state authorities. It will enhance interest in the development of Arctic resources.
• Public and private partnership can favor available innovative technologies and techniques.
• For these types of oil projects, companies can get financial help from the institutions which give money on interest. As there are high risks in the region, there will be no organization which will give interest-free loan.
• There are two different ways to fund ice, particularly oil projects. The principal utilizes an organization’s very own cash, the fee income, while the second is to source obligation. As a rule, organizations can obtain some money from money related establishments with financing costs. In light of conceivably serious dangers, no money related foundation will give capital.
• The legal agreements should be made between all the states of the arctic. This will give immense help to a linear set of operating and environmental regulations throughout the arctic. These agreements can be made possible by the arctic council. With these binding agreements, you can mitigate the oil spill risks and clear the sources of confusion.
• Cooperation amongst countries of arctic on best practices, innovation move, and environment guidelines can present an extra layer of responsibility to guarantee sheltered and capable Arctic advancement.

Conclusion

Regardless of the huge variety in climatic conditions and off the shore ice systems between the eastern and western Arctic locales, hydrocarbon advancement over the Arctic and far north accompanies intrinsic dangers.

It is in the wellbeing of all Arctic littoral states to discover discussions to share understanding and innovation, just as to participate in ecological security. While there is no one fits all approach, certain exercises can be gotten from the experience of oil and gas organizations as of now working in the Arctic and the far north that can help make more financially savvy, effective, and safe ways to deal with asset advancement in the district.

Commonly prescribed procedures can likewise help relieve disasters and improve the drilling process in the arctic.

Author Bio:

Claudia Jeffrey has a keen interest in the research. Hence, she is currently working as an assistant manager for research and development at Crowd Writer, a well-known report writing service. Claudia also writes blogs on the trending issues that occur throughout the world.