Big money at play and new workplaces in the Beaufort Sea?

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The Inuvialuit Regional Corporation, organization established by the agreement between the Government of Canada and the InuvialuitInuit of Canada’s Western Arctic people, says that Beaufort Sea Oil and Gas Licences shouldn’t be held foreverLocal institute believes that the federal government should allow corporations to extract hydrocarbon reservoir discovered in this region over 50 years ago! They are consider that it could change the lives of the local population. 

The problem is that the companies want to change contract that their nine-year licences to explore for oil in the deep waters of the Beaufort Sea can be extended to 16 years. Corporations also explain themselves that they have too little time to complete the necessary documents and to work out optimal for this region extraction technology. Companies know that there is a lot of money because of that Imperial Oil and BP gave the government security deposits about $445 millions. Federal goverment agreed with it provided that there will be drilling in otherwise a part of this amount is lost

However, the situation in this area is much more complicated. The facts are that companies currently hold the rights to 48 significant discoveries covering almost 200,000 hectares in the Beaufort Sea, but there is no oil production.

Where is the real problem? Maybe, according to the Northern Oil and Gas Report, some discoveries may not be immediately economic to produce because of the lack of optimal technology? Perhaps the reason is the lack of agreement between federal government and comapnies? We have no answers to these questions. Undoubtedly oil production in the Beaufort Sea would help the oil industry in the fight against the crisis and for the ‘Young Petro People’ means new workplaces which is very positive information. 

Sources: www.cbc.ca

              www.oilandgaspeople.com

Image: www.news.utoronto.ca

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