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Arctic Sh

In: Business and Management

Submitted By CRPF
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ITA Occasional Paper
August 2007
“Above-Ground” Issues Affecting Energy Development in the Arctic
By Rachel Halpern
Office of Energy and Environmental Industries
As opportunities to develop energy resources in the Arctic grow as a result of climate change and technical advances, companies wishing to participate will face not only technical challenges, but political, legal, and regulatory challenges, as well. The five Arctic countries considered in this paper (defined here as the countries that border the Arctic Sea – the
United States, Canada, Norway, Denmark/Greenland, and Russia – see Figure 1 on next page for map) will likely see increased interest in the development of their Arctic resources in the coming decades and will have to begin considering how to address these challenges in order to take advantage of this interest. Each Arctic country has different policies, laws, and regulations regarding oil and gas development and transportation, and these differences will affect how and by whom resources are developed, and how and where they are transported.
This paper describes 1) the reasons that energy companies will likely focus more of their attention on the Arctic; 2) the current state of knowledge of Arctic oil and gas resources; and
3) issues that will affect the development of Arctic oil and gas resources including boundary issues, access to resources, environmental restrictions, tax and regulatory issues, transportation challenges, and regional issues.
Attractions of the Arctic
The Arctic has not been widely explored by oil and gas companies, due to the severity of weather conditions, the high cost of Arctic operations, inadequate technology, and the fact that oil and gas can be produced with greater ease and at less expense in many other parts of

the world. Recent trends, however, have begun to mitigate these factors,…...

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