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Show . . - - ARCTIC OIL AND GAS DEVELOPMENTS A potentially important new source of natural gas for U.S. markets could develop in time if plans to implement prolific Canadian Arctic discoveries can be carried out and the gas transported south. Some 21 years after initial drilling for natural gas and oil in the Canadian Arctic Islands commenced, commenc-ed, plans are at last in the works to retrieve valuable gas discovered, albeit there are potentially formidable obstacles to overcome. PILOT LNG PROJECT The designated High Arctic Islands lie in latitudes from 75 to 80 North, all above the Arctic Circle. Originally it was envisioned that a complex to undersea pipelines and surface lines would transport natural gas to Canadian Cana-dian markets. But pipeline construction difficulties indicate the need for an alternative. Currently under consideration is a pilot project that would liquefy Arctic Island natural gas onsite, for shipment by LNG tankers. This ambitious undertaking under-taking would utilize double-hulled LNG carriers, 1,295 feet long, capable of handling Arctic sea ice seven-feet thick. It is evident that such proposed LNG carriers would be as much icebreakers ice-breakers as they would be fuel transports. Actually, the Arctic natural gas is surplus to Canadian requirements, and in effect will accrue to U.S. gas imports. im-ports. The LNG will be shipped from the harsh Arctic environment to a Canadian East Coast terminal for reconstitution to pipeline gas. The shipments will displace Western Canadian Cana-dian gas now used in the Eastern Canadian Cana-dian market, freeing the former gas supplies for shipment to the US. for purchase and distribution by domestic gas transmission operators. BEAUFORT SEA Also in the high latitudes is the offshore off-shore Beaufort Sea area, under exploration ex-ploration in both the U.S. t offshore Alaska's Prudhoe Bay field' and Canadian Cana-dian sectors offshore the Mackenzie Delta region). Operations here are unique uni-que in that climatic conditions of Arctic weather and consequent short drilling seasons are not conducive to the use of submersible or jack-up drill rigs. Systems to date in the area have usually usual-ly been dnllships. which can le moved on and off stations depending upon the ice conditions. Another drilling system in the relatively shallow waters of the Beaufort Sea operates from gravel islands. Such artificial drill pads can support a number of exploratory and production well, primarily for oil in the case of the Beaufort area In the U.S. Beaufort sector, domestic companies com-panies in operation or in planning stages include Shell. Tenneco. Amcx'o. Sohio, Phillips and Chevron The principal prin-cipal operator in the less active Canadian Cana-dian sector would be Dome Petroleum. HIIilRMA Latest of the Canadian frontiers to be probed is the Grand Banks area, offshore off-shore Canada's Fast Coast. A highly rated find of crude oil by Mobil was marred by the recent unexpected loss ol a huge semi submersible rig land lives I This points up the perils of weather in this area, which includes also the threat of iccburg transit through the Hanks, endangering the valuable drilling properties OUTLOOK In the Arctic anil offshore Canada locales, the prizes in oil and gas are apparently ap-parently worthwhile in spite of the physical efforts as to personnel and material at much greater than normal oil and gas exploration costs One other factor confronting Arctic oil operators is the political scene in Canada This involves in-volves confrontation between the provinces pro-vinces and the Canadian government as to the sharing of oil and gas largesse. The national energy policy, introduced in I'M), may actually prove to be an even greater roadback to Arctic oil development than the physical rigors involved. |