{"id":11459,"date":"2015-08-25T07:02:10","date_gmt":"2015-08-25T12:02:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=11459"},"modified":"2015-08-25T07:02:10","modified_gmt":"2015-08-25T12:02:10","slug":"does-arctic-drilling-have-a-future-with-sub-50-oil","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=11459","title":{"rendered":"Does Arctic Drilling Have A Future With Sub $50 Oil?"},"content":{"rendered":"<h3><a href=\"http:\/\/oilprice.com\/Energy\/Crude-Oil\/Does-Arctic-Drilling-Have-A-Future-With-Sub-50-Oil.html\" target=\"_blank\">Does Arctic Drilling Have A Future With Sub $50 Oil?<\/a><\/h3>\n<p>Italian oil group ENI is expected to begin production from the Goliat Field off Norway in a few short weeks. The project, which has cost $5.6 billion, is expected to produce 34 million barrels of oil per year by the second year of production.<\/p>\n<p>Yet ENI seems to be bucking the global trend, as would-be Arctic drillers in other parts of the region hand back leases or allow them to expire, citing high risks and high costs as major contributing factors. Successful environmental campaigns as well as an increased global awareness \u2013 and political will \u2013 to address climate change have also been influential.<\/p>\n<p>All this against a backdrop of global oil prices below $50 a barrel and an outlook of continued oil market volatility.<\/p>\n<p>With Arctic exploration and production being so expensive, the risks so great, and the current market conditions relatively unfavorable, one might ask why Shell, ENI, and others would continue.<\/p>\n<p><a href=\"http:\/\/oilprice.com\/Energy\/Oil-Prices\/Low-Oil-Prices-Assessing-The-Damage-So-Far-In-2015.html\"><strong>Related:\u00a0Low Oil Prices: Assessing The Damage So Far In 2015<\/strong><\/a><\/p>\n<p>The main reason is resource potential. The Arctic holds the last, great, untapped oil and gas reserves. The U.S. Geological Survey in 2008\u00a0<a href=\"http:\/\/www.usgs.gov\/newsroom\/article.asp?ID=1980#.VdpDr9NViko\">estimated<\/a>\u00a0that the Arctic contains 22 percent of the world\u2019s undiscovered hydrocarbon resources, totaling 90 billion barrels of oil, 1,670 trillion cubic feet of natural gas, and 44 billion barrels of natural gas liquids.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/cdn.oilprice.com\/images\/tinymce\/AlexisArctic.jpg\" alt=\"\" width=\"450\" height=\"344\" \/><\/p>\n<p>But those resrources come at a significant cost. One\u00a0<a href=\"http:\/\/199.36.140.204\/todayinenergy\/detail.cfm?id=4650\">estimate<\/a>\u00a0put project costs in the Alaskan Arctic at 50 \u2013 100 percent greater than an equivalent project in Texas.<\/p>\n<p>Shell has discovered this first hand. The company has sunk $6 billion into its arctic ambitions, and experienced several high-profile setbacks, including the abandonment of its drilling campaign in the Beaufort Sea after its oil rig\u00a0<a href=\"http:\/\/www.nytimes.com\/2015\/01\/04\/magazine\/the-wreck-of-the-kulluk.html?_r=0\">ran aground<\/a>\u00a0in 2012.<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Does Arctic Drilling Have A Future With Sub $50 Oil? Italian oil group ENI is expected to begin production from the Goliat Field off Norway in a few short weeks. The project, which has cost $5.6 billion, is expected to produce 34 million barrels of oil per year by the second year of production. Yet [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[7434,1018,3121,8429,8430,1241,592,1775,5332],"class_list":["post-11459","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-alexis-arthur","tag-arctic","tag-arctic-drilling","tag-eni","tag-goliat-field","tag-norway","tag-oil-price","tag-oil-price-collapse","tag-oilprice-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11459","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11459"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11459\/revisions"}],"predecessor-version":[{"id":11460,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/11459\/revisions\/11460"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11459"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}