AJM Petroleum Consultants

AJM Petroleum Consultants

May 12, 2008 23:59 ET

Canada Lags in Arctic Development

CALGARY, ALBERTA--(Marketwire - May 12, 2008) - Canada is being left behind in efforts to find, develop and produce hydrocarbons from the Arctic says an Alberta-based expert. Dave Russum, Vice President of Geoscience with AJM Petroleum Consultants, will focus on Canada's Arctic opportunities during a technical talk he will present as part of the 2008 C3GEO Convention tomorrow in Calgary.

"About 30 years ago, Canada was a pioneer in the Arctic, but we have spent the past thirty years mired in a debate over the Mackenzie Valley Pipeline," explains Mr. Russum. "Estimates suggest that there might be 10 billion barrels of oil and 181 trillion cubic feet of gas in the Canadian Arctic, and with our high rates of natural gas production depleting reserves of conventional natural gas across Canada, we need to be considering all opportunities."

According to international law, no country currently owns the rights to the North Pole. The five surrounding Arctic states (Russia, the United States, Canada, Norway and Denmark) are limited to a 200 nautical mile (370km) economic zone around their coasts. However, as part of ratifying the United Nations Convention on the Law of the Sea in 2003, Canada was awarded ten years in which to stake a claim extending our 200 nautical mile zone. While Canada has the opportunity to expand our claim to Arctic sectors, we have historically lagged behind on the exploration and development fronts.

"While exploring for petroleum in the Arctic is technically and physically challenging, there are a number of geological basins that have proven oil and gas - Norway, Russia and the USA all have producing projects within the Arctic basins," said Mr. Russum. "As the changing environment increases open water in the Arctic and the Northwest Passage becomes passable during summer months, Canada needs to consider Liquefied Natural Gas (LNG) and other imaginative transportation options to support our Arctic development."

AJM Petroleum Consultants, a privately owned Calgary-based company, has extensive experience in corporate reserve evaluations, acquisition and divestiture evaluations, and evaluations of unconventional reserves such as coalbed methane, tight gas, shale gas and bitumen/heavy oil. Diverse engineering and geological capabilities combined with a forward thinking approach to technology have allowed AJM to provide innovative solutions to clients in the upstream sector of the oil and gas industry in Western Canada, North America and internationally.

Contact Information

  • AJM Petroleum Consultants
    Andrea Conway
    (403) 648-3269 or Cell: (403) 200-6292