The Arctic presents a tremendous opportunity for eager producers, though the assets in the region will prove to be less ideal than originally speculated. In 2000, engineering firm Fugro-Robertson placed the global yet-to-find reserves at 864 billion barrels of oil equivalent (BOE) of which 51% is oil. The Arctic represents approximately one-fifth of global yet-to-find potential. "This oil/gas mix is not ideal because remote gas is often much harder to transport to markets," Andrew Latham, vice president of upstream research and consulting firm Wood Mackenzie, said at a recent event in Houston. It would take some 10 to 15 years following the completion of pipelines before the full potential of the Arctic region is realized, he added. Without export infrastructure in many of the regions, particularly Russia, a large portion of the gas reserves are unlikely to be produced prior to 2050. For more on this, see the December issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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