A recent expedition to the Arctic struck oil, quite literally. Exxon, who is partnering with the Russian company OAO Rosneft discovered some rather large and impressive deposits of oil and natural gas, and they happened to be fortunate enough to do this on their very first well. This gives them high hopes as to what they will find throughout the other areas where they plan to drill.
As great as this news might seem, it does create some substantial questions as well. Namely, the United States recently placed sanctions on companies providing “goods, services, and technologies” from oil projects in the Arctic, as well as other oil drilling in Russia. This is leaving many wondering just what will happen. The companies involved with the discovery though are very happy with their findings thus far, and they seem to be continuing to look for more deposits.
For the most part, the Arctic is still new territory when it comes to oil and gas exploration. Experts believe that it has some of the biggest deposits in the world, and that even larger deposits are just around the corner. Thanks to some of the newer technology and equipment that’s on the market today, it is making it easier for oil companies to discover the deposits before they ever start to drill. It helps them to narrow their focus and results in fewer dry holes.
The discovery of this newest deposit, regardless of the sanctions, is still so new that the companies involved will not be able to start pumping oil out of the well for several years still. However, they are confident that this, along with other spots in the Arctic, will lead to some great results for both of the companies involved. It will just take time, and the eventual removal of the sanctions, in order for that to happen.
Exxon has always been a company that looks at the long-term benefits, and they seem to be in this venture for the long haul. Russia sees these wells as a great way to increase their domestic operations and to reduce their reliance on foreign oil, while making a profit by selling much of what they pump. Oil is one of the ways that Russia hopes to be able to maintain their position of power and their clout in the world.
Of course, we’ve yet to see the full effect of these sanctions, resulting from Russian actions in the Ukraine.
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