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.