Current status and developmental perspective of Oil Resource in the Arctic Circle

Abstract

The U.S. Geological Survey (USGS) has completed an assessment of undiscovered conventional oil and gas resources in all areas north of the Arctic Circle. Using a geology-based probabilistic methodology, the USGS estimated the occurrence of undiscovered oil and gas in 33 geologic provinces thought to be prospective for petroleum. The sum of the mean estimates for each province indicates that 90 billion barrels of oil, 1,669 trillion cubic feet of natural gas, and 44 billion barrels of natural gas liquids may remain to be found in the Arctic, of which approximately 84 percent is expected to occur in offshore areas. Korea needs to cooperate with Arctic countries for development and trade of oil and gas, because Korea has no resources. Especially Russia, which has a half of oil resources in the Arctic Circle, is a principal partner of Korea. Russia has established 'Russia Energy Strategy 2030', and needs technology and capital for development of oil and gas. However, Korea has to approach the issue of resources in the Arctic Circle not economically but scientifically, because resources of Russia are in the jurisdiction of Russia. First step is to secure mutual trust through scientific joint research, and second step is to find a way to participate in Russian development program of oil and gas. Scientific cooperation is foundation stone for energy diplomacy between Korea and Arctic States, especially Russia.