30 SECOND GUIDE TO: Arctic Drilling

By ROB DAVIES FOR THE DAILY MAIL

Updated: 04:47 EST, 4 January 2013

Oil of course. There’s plenty of it hidden beneath the surface of the Arctic. The area may be treacherous to navigate, but the prize beneath is proving simply too tempting for the oil industry.

What’s on offer?

Between 40billion and 160billion barrels of oil, says the US Geological Survey, which estimates that the Arctic Circle may contain 30 per cent of the world’s undiscovered gas and 13 per cent of its undiscovered oil.

Any other stats?

Based on a US government estimate that the world uses 30 billion barrels of oil per year, Arctic reserves could power the planet for five years. Also, that much oil, sold at today’s market price, would fetch you a  mind-boggling £11trillion.

Big freeze: Environmental groups warn that an Arctic oil spill would be difficult to clean up, due to the harsh weather conditions.

Easy money

Not exactly. Arctic drilling is fraught with danger due to the extreme cold and remote location. Shell has spent seven years – and £3billion – preparing the ground. It has also faced protests from environmentalists who say oil extraction in a polar climate can’t be done safely.

Are they right?

Judge for yourself. Just this week one of Shell’s drilling ships ran aground on an island. Last year a key piece of Shell’s safety equipment, a ‘capping stack’, was damaged in its final test. No-one really knows quite how difficult it would be to clean up a spill in the tough Arctic conditions.