U.S. announces plan to fund study of Russia’s potential oilfields

by The Associated Press

U.S. Energy Secretary Spencer Abraham announced Aug. 1 that his department would fund an analysis of potential offshore oil and gas fields in the Russian Arctic, saying that the project could contribute to global energy security by helping tap new resources.

“A more accurate description of the resources in the Siberian offshore basins will stimulate interest in the further exploration and the eventual production of one of the highest potential frontier areas of the world,” Abraham said at a news conference in Moscow after talks with Russian energy officials and businessmen.

The analysis of the Eastern Siberian offshore oil and gas basins is part of the U.S. Geological Survey’s Arctic Resource Assessment, an ongoing study, and will be done in cooperation with the Russian government, industry and scientists.

The study will assess four unexplored Russian geological basins, helping identify those offering greater opportunity for development.

“It’s vital that we more fully understand the potential of this region,” Abraham said, pointing that almost a quarter of the world’s yet untapped oil and natural gas resources lie in the Arctic. Abraham said the exploration of new energy resources will be vital for long-term stability of the global energy market. “The more diverse sources of energy are, the less likely it is that a disruption in supply anywhere on the planet can severely affect any of the consumers of the world,” he said.

Abraham and Russian officials also discussed preparations for the U.S.-Russian commercial oil and gas summit to be held in Houston on October 1-2.