A recent article on nytimes.com covers the search for oil in Icelandic waters and Iceland’s ambitions to become a base for drilling, mining and shipping of energy and other resources in the Arctic.
Iceland issued two oil exploration licenses for the Dragon Zone (Drekasvæði), on the Jan Mayen Ridge, earlier this year with geological similarities to oil-rich areas of Norway raising hopes.
Graham Stewart, chief executive of Faroe Petroleum Norge AS, which is among the companies to be granted a license, said his company believes there is a high potential for finding oil in the area. “There’s a reasonably good chance of finding something, and something big,” he commented.
Commercial production would be some time off, though. Þórarinn Arnarson, hydrocarbon exploration manager at the National Energy Authority of Iceland told nytimes.com that should it be found feasible, production could be at least ten years off. The area’s remoteness also poses a number of challenges.
In the meantime, Iceland hopes to “capitalize on what it sees as the coming Arctic boom,” the article reads. Heiðar Guðjónsson, chairman of Eykon Energy, which has applied for an exploration and production license for the Dragon Zone, said that Iceland’s infrastructure was a big drawcard.
“In Iceland, you have good infrastructure, you have a good network of harbors, ice-free the whole year round, international airports, a good health care system, a whole network,” he said. “This is a rarity in remote places such as the Arctic.”
Click here to read the full article on nytimes.com.