Russian Arctic Set to Become the New Frontier

Investing in the Arctic is a high-risk venture. The harsh climatic conditions of the “last energy frontier” coupled with limited availability of infrastructure translate into high capital and operating costs. Given these challenges, the Arctic still remains very attractive to the industry. The region above the Arctic Circle accounts for about six percent of the Earth’s surface, but it potentially holds around 22 percent of the world’s undiscovered conventional oil and natural gas resources. Arctic drilling is not new, and the existence of hydrocarbon resources in the Arctic has been known fo…

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