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The resolution of boundary disputes could open up the Arctic’s vast resource potential.
The Arctic Ocean is vast both geographically - covering more than 14 million square kilometers, an area comparable to onshore Russia - and in its hydrocarbon resource potential. In 2008, the U.S. Geological Survey’s National Oil and Gas Assessment team estimated that the Arctic may contain upwards of 10% of the world’s undiscovered oil and 30% of the world’s undiscovered gas. Across the Pole, Russian energy giant Gazprom is counting on offshore Arctic locations to provide up to a quarter of its natural gas production by 2020. As a result, territorial disputes are under way throughout the Arctic Ocean, mostly driven by conflicts over oil and gas rights.
Excerpted from Oil and Gas Investor, September 2010, © Hart Energy Publishing. Reprinted by permission. To read the full article click on the PDF linked below.