OREANDA-NEWS. March 30, 2015. Estimates suggest the Arctic contains as much as 13 percent of the world’s undiscovered conventional oil and 30 percent of its undiscovered conventional natural gas. That means the region at the top of the globe contains one of the world’s largest sources of undiscovered recoverable petroleum resources.

Those resources could be critical to meeting the 21st century’s growing demand for energy. But first they would have to be recovered safely and responsibly.

A big step toward doing that was taken earlier today with the publication of a groundbreaking study on Arctic issues from the National Petroleum Council.

The NPC is an advisory body providing guidance to the U.S. secretary of energy on matters pertaining to oil and natural gas development. It is made up of representatives from industry, along with experts from various finance, manufacturing, consulting, academic, environmental, and public policy organizations. ExxonMobil CEO Rex Tillerson and Deputy Energy Secretary Liz Sherwood-Randall co-chaired the NPC study committee that produced the report.

The report, which was endorsed by the full NPC at a meeting this morning, stresses two important points:

  • First, U.S. Arctic oil and natural gas resources can be developed safely and responsibly.
  • Second, doing so could enhance the country’s position as a global energy leader for decades to come.

The latter point is particularly important given expectations that U.S. shale energy production may decline at some point in the coming decades.

The report also stressed that although the Arctic environment poses some different challenges relative to other geographical areas where oil and natural gas are produced, it is still generally well understood.

That’s not surprising to those of us at ExxonMobil.

Oil was first discovered in the Arctic by our Imperial Oil affiliate in 1920, so we have been producing energy in Arctic conditions for nearly a century. During that period our industry has drilled more than 6,000 wells there, including more than 1,000 offshore.

Currently projects in the Arctic and subarctic North account for 25 percent of the world’s natural gas and 10 percent of global oil production. That comes from many different circumpolar locations, from Alaska to Canada’s Northwest Territory to Norway to Russia’s Sakhalin Island. It is a substantial contribution to the world’s energy mix. But it is a fraction of what it could be, particularly with the United States showing leadership.

The extensive experience gained by companies like ExxonMobil operating in Arctic conditions continues to lead to technology advances that extend our capabilities. Our past efforts have created a reservoir of knowledge and tools that help us operate safely in increasingly challenging environmental conditions, one step at a time.

We have built platforms capable of withstanding icebergs. We have developed state-of-the-art ice-monitoring techniques. And we have developed rapid, effective response methods to use in the event of an accident.

The Council’s report recognizes the strides that have been made to improve safety and operational performance. More than that, it offers a sober assessment of the challenges and opportunities associated with Arctic energy development.

I encourage everyone to read it to better understand the next great frontier in developing the energy resources needed to power our world.