Arctic Energy Development Fran Ulmer Chair, US Arctic Research Commission USAEE Presentation July 29, 2013.

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Presentation transcript:

Arctic Energy Development Fran Ulmer Chair, US Arctic Research Commission USAEE Presentation July 29, 2013

Arctic Region

Energy Resources in the Arctic 30% of world’s undiscovered gas 13% of world’s undiscovered oil Mostly offshore Polar ice retreat/technological advances change economics Est. of platform cost $5-8 B each >400 oil and gas fields exist onshore: 40 billion barrels of oil 1136 trillion cubic feet natural gas 8 billion barrels of natural gas liquids *Gautier et al., Science, Vol. 204, 2009 Location of Arctic Basins assessed by the USGS.

Resource Development Companies Active in the Arctic Rosneft: Russia Gazprom: Russia Statoil: Norway NUNAOIL: Gr/Denmark Exxon Mobil: US Shell: Holland Conoco-Phillips: US BP: UK ENI: Italy

Challenges Related to Working in Extreme Environments Severe and cold weather requires specially designed equipment Poor soil conditions (permafrost, etc.) require additional site prep Some deposits are hazardous (i.e., gas hydrates) Limited ports & exportation options; long supply lines & extensive transport High costs to develop reserves (50-100% higher) Higher wages to attract and retain employees and advanced cold weather training required

Human Impacts: Over 4 million Arctic residents Food Security Concerns about population status & contaminants (PAHs, POPS, dispersants, herding agents, etc.) in subsistence foods Impacts may be BOTH real and perceived Environmental concerns Oil spill impacts on mammals, birds & fish that subsistence hunters depend on Health Economy

Law of the Sea and its Impact on Development Gives nations an “exclusive economic zone” to 200 miles offshore (or to maritime boundary) Gives sovereign rights over the resources on and under the seabed in our “extended continental shelf” beyond EEZ. The Senate has yet to ratify UNCLOS (~160 countries have, & are working on their claims)

International science and policy initiatives Arctic Council Marine Oil Pollution Preparation and Response Search and Rescue Agreement Arctic Ocean Review Prevention and Safety Culture Task Forces Arctic Marine Shipping Assessment Task Forces on Circumpolar Business and on Research International Organizations IMO/Polar Code OSPAR OGP OCIMP INTERTANKO

Overview of research & recommendations on: a.Spill delineation & migration, including containment and countermeasures b.Oil spill response technologies for cleanup and recovery of oil c.Data management tools and the fate of oil and its effects on the environment Published 11/12

National Research Council (NRC) Study: Responding to Oil Spills in Arctic Marine Environments This study will assess the current state of science and engineering regarding oil spill response and environmental assessment in the Arctic region with emphasis on potential impacts in U.S. waters

Agency capacity: Arctic ERMA: Environmental Response Management Application 13 ERMA® is a web-based GIS tool designed to assist both emergency responders and environmental resource managers. -provides a common operational picture -improves communication and coordination between responders and stakeholders -provides real-time Information and prediction models for weather, and tides

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