Westshore Arctic: Strategic Players in the Arctic

Petroleum exploration in the Arctic is more technically challenging than any other environment in the world – because of its remote location and severe weather conditions. However,  with increases in technology and continuing high oil prices, the region is now receiving the interest of petroleum pioneers around the globe.

There are 19 geological basins that make up the Arctic region. Some of these basins have had oil and gas exploration. However, only half the basins have actually been explored, which means enormous untapped potential. With the vast body of information and speculation on Artic potential, it’s difficult to determine the full scope and breadth of the potential;however, there are a few major indicators pointing the way. Here they are:

The United States Geological Survey estimates that, “over 87% of the Arctic’s oil and natural gas resource (about 360 billion barrels oil equivalent) is located in seven Arctic basin provinces: Amerasia Basin, Arctic Alaska Basin, East Barents Basin, East Greenland Basin, West Greenland East-Canada Basin, East Greenland Rift Basin, West Siberian Basin and the Yenisey-Khatang Basin”.

According to the 2008 United States Geological Survey, it is “estimated that areas north of the Arctic Circle have 90 billion barrels of undiscovered, technically-recoverable oil (and 44 billion barrels of natural gas liquids) in 25 geologically defined areas thought to have potential for petroleum. This represents 13 percent of the undiscovered oil in the world. Of the estimated totals, more than half of the undiscovered oil resources are estimated to occur in just three geologic provinces—Arctic Alaska, the Amerasia Basin, and the East Greenland Rift Basins”.

A recent study carried out by Wood Mackenzie on the Arctic potential highlights four basins that are likely to be the focus of the petroleum industry in the upcoming years: the Kronprins Christian Basin, which is likely to have large reserves; the southwest Greenland basin, due to its proximity to markets; and the more oil-prone basins of Laptev and Baffin Bay.

Opportunities for Operators & Suppliers

Arctic opportunities mean enormous growth and potential for petroleum industry players, as regions become more accessible and delineated. One such company, Westshore Arctic, is proactively envisioning a future that they fully expect to happen. Following its success in Rio de Janeiro with the opening of Westshore Do Brasil in 2010, Westshore Arctic has strategically opened an office in St. John’s Newfoundland, in order to assist with ship brokerage projects in the North Atlantic and Arctic areas worldwide.

Newfoundland’s proximity to Europe, North America, and other Arctic regions makes it a strategic location for business growth and development in the Arctic. Darrell Cole, managing director of Westshore Arctic, says, “Our connections to offshore owners with arctic capable tonnage are a good match for the current trends in the Canadian offshore market. We clearly see the opportunities ahead, and we want to provide operators with a solid source of tonnage from the global market.”

Darrell explains the opportunities ahead like this, “The next frontier for exploration and production is undoubtedly the Arctic. One of Westshore Arctic’s primary areas of interest is West Greenland. On Nov. 22, 2012, in the House of Assembly, the provincial government passed the plan to develop actions that will position Newfoundland and Labrador as a leader in Arctic-related activities. That bodes well for our company as we are now strategically aligned with the province and the Arctic opportunities.” As part of the Canadian delegation for the “International Organization of Standards (ISO) for Arctic Operations” (ISO/TC67/SC8) that recently met in Moscow, Russia, Darrell Cole was quick to point out that four of the six delegates representing Canada were Newfoundlanders! “We have the expertise and are now more than ever recognized as global leaders when it comes to the Arctic.”

Go North!