Friday, February 13, 2009

Taking "Drill Baby Drill" to the Extreme

Things are so depressing in California these days that maybe we should turn our sites someplace else... like the Arctic Circle!

The Wall Street Journal has an interesting piece about a Norweigan company that is harvesting LNG from the Arctic Circle.

The Journal notes:

"The project, called Snoehvit, has taken StatoilHydro and the entire oil and gas industry into uncharted territory. Before, no one had ever produced liquefied natural gas in the Arctic -- or in Europe, for that matter. And blazing that trail has been fraught with problems, putting Snoehvit behind schedule and over budget.

But the lure of the Arctic has proved irresistible, and not only for StatoilHydro. The region is thought to contain just over a fifth of the world's undiscovered oil and gas resources. Even conservative estimates put its reserves at 100 billion barrels of oil."

You can't get much more remote than the Arctic Circle and weather, distance, etc. is an obvious factor to the viability of full scale operations there, but the resources are plentiful, to say the least.