Arctic Oil & Gas Corp. has provided shareholders with new data and commentary on the Arctic Commons.
Arctic Oil and Gas Corp. and its partners made an international Arctic Commons hydrocarbons claim on May 9th 2006 with the United Nations and the five Arctic countries. This claim is for the exclusive exploitation, development, marketing and extraction rights to the oil and gas resources of the seafloor and subsurface contained within the "Arctic Claims"; an area of the Arctic Ocean that has no country's claims to it; or simply, the open area in between all of the Arctic-bordering countries.
The Arctic Ocean Basin was once one great-fresh-water matted Azolla-rich pond, capturing untold billions of tons of organic sediments. It is believed to hold vast reserves of untapped oil and natural gas, which is expected to become accessible as new deep-sea drilling and hydrocarbons production technology becomes available.
Within an area approximately ten times larger than Iraq, recent scientific drilling and seismic testing found indications that oil source rocks containing large percentages of organic rich sediments cover the entire Arctic Ocean seafloor.
A preliminary assessment by the US Geological Survey suggests the Arctic seabed may hold as much as 25 percent of the world's undiscovered oil and natural gas reserves. By one estimate, 400 billion barrels of oil might lie beneath the Arctic seabed.
Provided the Company's claim tenure, legal issues and government negotiations are managed properly, the Arctic Commons Deeps basin area could become the world's largest independently owned offshore oilfields; safely beyond the reach of self-serving governments.
Peter Sterling, CEO of the Company, commented, "For the major independent oil companies, (IOCs) operating in the world's great sedimentary oil basins, the above-ground risks via onerous taxation and outright expropriation are becoming extreme. IOCs are not getting access to enough new sources of oil and gas. State owned oil companies are increasingly taking over their national oil reserves and squeezing out the IOCs. IOCs urgently need to find a new vision for energy growth to remain relevant and the Arctic Commons Deeps sedimentary basin complex represents such an opportunity. And we intend to manage that vision by acting as the 'Lead Manager' of the Arctic Commons Consortium."
Company Management further believes the Arctic Commons Abyssal may prove to hold sufficient hydrocarbons resources to enable the US and Pacific Rim nations to reduce their reliance on unstable Middle East oil supplies and ensure America's energy security for as long as 100 years into the future.
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