1 Energy Information Administration, Annual Energy Outlook 2009, DOE/EIA-0383(2009) (Washington, DC, March 2009)U.S. Geological Survey, “Circum-Arctic Resource Appraisal: Estimates of Undiscovered Oil and Gas North of the Arctic Circle,” USGS Fact Sheet 2008-3049, Washington, DC (2008), page 1.  USGS website URL is: http://pubs.usgs.gov/fs/2008/3049/.

2 Donald L. Gautier, et. al.,“Assessment of Undiscovered Oil and Gas in the Arctic,” Science, May 29, 2009, Volume 324, page 1175 - 1179.

3 Sweden and Finland have onshore territory in the Arctic but none with any known or projected oil and natural gas resources.

4  Latitude: 70.2552778 (70-15'19'' N) and Longitude: -148.3372222 (148-20'14'' W); source: http://www.lat-long.com/Latitude-Longitude-1408327-Alaska-Prudhoe_Bay.html

6  Arctic Council, “Arctic Climate Impact Assessment,” Cambridge University Press, 2005, page 10.

7 Ibid. Table 1.1, page 14.

8 Ibid. page 13.

9 The exact recovery of oil and natural gas from a field is not known with certainty until that field has been permanently abandoned.  Actual recovery is often greater than the original estimate, as the producer learns how to apply technology to enhance recovery rates.  Ultimate field recovery rates are also affected by oil and natural gas prices, with higher prices resulting in higher recovery rates. Consequently, the exact number of large discovered fields above the Arctic Circle can only be approximate.  Large field data source:  Petroleum Source to Reservoir, Giant Oil and Gas Fields database, Version 14, 2009, website address: http://www. sourcetoreservoir.com/index.html

10 Figure does not include natural gas.  Source: Alaska Department of Natural Resource, Division of Oil & Gas, Alaska Oil and Gas Report, July 2007, Anchorage, Alaska, Table III.1(Oil and Gas Reserves), page 3-2 and Table III.3 (Oil Production – Historic), page 3-5.

11 Also known as the TransAlaska Pipeline System (TAPS).

12 Op. cit. Alaska Department of Natural Resources, Table III.1, page 3-2.

13 There are often multiple variations for the English spelling of foreign oil and natural gas fields.

14 This number is approximate because it depends on the latitude coordinates provided in the Giant Oil and Gas Fields database.  The oil and natural gas fields’ latitude in the database had to be greater than the 66.56° latitude to qualify as Arctic fields.

15 All sedimentary province names are those used by the United States Geological Survey.

16 Technically recoverable resources are resources that can be produced using current technology.

17 U.S. Geological Survey, “Circum-Arctic Resource Appraisal: Estimates of Undiscovered Oil and Gas North of the Arctic Circle,” USGS Fact Sheet 2008-3049, Washington, DC (2008).  The USGS is currently preparing a more extensive report regarding their Arctic assessment.

18 Source: Personal communication with Ronald R. Charpentier of the USGS on May 12, 2009.  Seven of the eight provinces that were not quantitatively assessed have only one assessment unit.  The Franklinian Shelf province has three separate assessment units.

19 USGS Newsroom release dated July 23, 2008. USGS website URL: http://www.usgs.gov/newsroom/article.asp?ID=1980 &from=rss_home.  Figures do not include or consider world unconventional oil and natural gas resources, such as Rocky Mountain oil shale, Canadian oil sands, Venezuelan Orinoco heavy oil, etc.  Inclusion of these unconventional resources would reduce the Arctic proportion of total world oil and natural gas resources.

20 Op. cit. Source to Reservoir.

21 Ibid.

22 From the perspective of mathematical probability and statistics, the resource probability distribution is skewed, such that the median value is less than the mean value.

23 Donald L. Gautier, et. al.,“Assessment of Undiscovered Oil and Gas in the Arctic,” Science, May 29, 2009, Volume 324, page 1175 -1179.  Specific numbers came from the Excel spreadsheet file associated with the Science article, labeled as: “1169467TableS1s.xls”.

24 Cairn Energy PLC is headquartered in Edinburgh, Scotland.

25 Cairn Energy PLC presentation, “Oil, Deserts, and Ice: A Focus on Challenges and Rewards in India and Greenland,” presented by Dr. Michael Watts at the Scottish Oil Club on May 26, 2009, Slide 38.  Available at: http://www.cairn-energy.plc.uk/ downloads/ ScottishOilClubwebopt.pdf

26 The future development of Russia’s Arctic resources in a market-based economy is greatly facilitated by the extensive Arctic oil and natural gas infrastructure that was built under the Soviet regime.

27 E.P. Robertson, Idaho National Engineering and Environmental Laboratory (Bechtel BWXT Idaho, LLC), “Options for Gas-To-Liquids Technology in Alaska,” INEEL/EXT-99-01023, December 1999, page vii.; and Charles B. Thomas, et. al., Idaho National Engineering and Environmental Laboratory (Lockheed Martin), “Economics of Alaska North Slope Utilization Options,” INEL-96/0322, August 1996, page B-19.

28 Eric Lidji, “Nikaitchuq oil in 2010,” Petroleum News, Volume 14, Number 21, May 24, 2009, pages 1, 13.

29 Yereth Rosen, “Sudden Spring jolts Alaska’s oil exploration,” Thomson Reuters, June 3, 2009.

30 The movement of heavy equipment in the Arctic to drilling locations is usually confined to the winter months when the tundra is frozen.  During the rest of the year, the tundra is too marshy and boggy to permit the off-road transportation of heavy equipment.

31 Alan Bailey, “9th Circuit suspends Shell’s Beaufort Sea drilling program,” Petroleum News, Volume 12, Number 30, July 29, 2007, pages 1, 15.

32 Alan Bailey, “Shell wells still possible,” Petroleum News, Volume 12, Number 37, September 16, 2007, pages 1, 22.

33 Alan Bailey, “Shell: Prepared for the worst,” Petroleum News, Volume 12, Number 35, September 2, 2007, pages 9 - 11.

34 Kay Cashman, “Shell pushes drilling out to 2010, ’11,” Petroleum News, Volume 13, Number 52, December 28, 2008, page 3.

35 Dave Thomas, et.al., “Shtokman – The big cod,” Deutsche Bank Company Research, March 22, 2006, pages 14 – 16, 19.

36 Ibid, page 19.

37 Cambridge Energy Research Associates, “Conquering Yamal,” October, 2007, Cambridge, Massachusetts, page 14.

38 Sarah Hurst, “Varandey Arctic oil terminal starts up,” Petroleum News, Volume 13, Number 25, June 22, 2008, page 10.

39 Norwegian Barents Secretariat, “Oil transport from the Russian part of the Barents Region, Status per January 2009,” Kirkenes, Norway, 2009, page 50.

40 Ibid., Norwegian Barents Secretariat, page 31.

41 National Snow and Ice Data Center, “Arctic Sea Ice Down to Second-Lowest Extent; Likely Record-Low Volume,” Boulder, Colorado, October 2, 2008.

42 Part VI, Article 76, at http://www.un.org/Depts/los/convention_agreements/texts/unclos/unclos_e.pdf

43 Defined in the UNCLOS, ANNEX II as being any water depth less than 200 meters (~656 feet).

44 Norwegian Petroleum Directorate, “Continental Shelf Submission of Norway,” 2006, http://www.regjeringen.no/upload/kilde/ ud/prm/2006/0374/ddd/pdfv/299461-sokkel.pdf

45 Associated Press, “Russian Navy Staking Arctic Ocean Sea Bed,” Petroleum News, Volume 12, Number 30, July 29, 2007, page 17.

46 International Boundaries Research Unit, “Maritime jurisdiction and boundaries in the Arctic region,” Durham University, United Kingdom, August 15, 2008. http://www.dur.ac.uk/resources/ibru/arctic.pdf

47 Barbara Shook and Leslie Palti, “Shale Gas Developed in U.S., Canada; Yet to be Exploited Worldwide,” Oil Daily, April 7, 2009, page 4.