Sustainable Development of Oil and Gas Potential of the Arctic and Its Shelf Zone: the Role of Innovations
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Journal of Marine Science and Engineering Article Sustainable Development of Oil and Gas Potential of the Arctic and Its Shelf Zone: The Role of Innovations Diana Dmitrieva * and Natalia Romasheva Organization and Management Department, Saint-Petersburg Mining University, Saint-Petersburg 199106, Russia; [email protected] * Correspondence: [email protected]; Tel.: +7-921-302-4523 Received: 12 November 2020; Accepted: 7 December 2020; Published: 8 December 2020 Abstract: Currently, the Russian oil and gas industry is characterized by significant reserves depletion and the late stage of development of most fields. At the same time, new fields that are brought into industrial development, in the majority of cases, have hard-to-recover reserves. Furthermore, most prospective oil and gas deposits are located in the Arctic and its offshore territories and their development is much more complicated due to regional peculiarities. This substantiates the necessity of a special approach to the development of the oil and gas potential of the Arctic, based on innovation. The goal of the paper is to reveal the role of innovation activity in the sustainable development of the oil and gas potential in the Arctic and its offshore zone. The paper briefly presents the main urgent factors of Arctic development, which highlight the necessity of innovation for its sustainability. Then, it introduces the methods used for the research: the Innovation Policy Road mapping (IPRM) method in accordance with Sustainable Development Goals (SDGs) concept for clarifying how innovations will lead to sustainable development. In terms of results, this paper presents an innovation policy roadmap for the sustainable development of oil and gas resources of the Russian Arctic and its shelf zone and identifies the role of innovation within this development. Keywords: innovations; sustainable development; hydrocarbon resources; Arctic; oil and gas potential; offshore oil and gas fields 1. Introduction The Russian Arctic is a unique region with significant resources, great potential and strategic importance for Russia due to its unique mineral resource base (especially oil and gas deposits), promising ways to develop logistics infrastructure, and other factors. About 12% of Russia’s territory is located beyond the Arctic Circle [1] and about 12–15% of the country’s gross domestic product is created in the Arctic zone and it provides about a quarter of exports [2]. Provided the intensive and effective development of this region, especially the offshore zone, development of which requires a special approach with innovation technologies and proper skills, Russia can increase its resource potential several times, which will lead to an increase in the competitiveness of the Russian economy at the global level. The accelerating climate change and altering accessibility to valuable minerals has affected expectations for a growing supply of northern resources globally. Plans for Arctic resource extraction are often considered as a vehicle for local economic development, which is reflected in the development strategies issued in Russia, Greenland, Canadian Nunavut, or Alaska [1]. The distribution of undiscovered hydrocarbon reserves between Arctic countries is presented in Figure1[2]. J. Mar. Sci. Eng. 2020, 8, 1003; doi:10.3390/jmse8121003 www.mdpi.com/journal/jmse J. Mar. Sci. Eng. 2020, 8, 1003 2 of 18 J. Mar. Sci. Eng. 2020, 8, x FOR PEER REVIEW 2 of 20 Figure 1. Distribution of undiscovered oil reservesreserves between the ArcticArctic countries,countries, %.%. TheThe oiloil andand gasgas complexcomplex ofof thethe RussianRussian Federation is a large-scale unit ofof thethe nationalnational economy andand thethe most important spheresphere ofof itsits resource-innovativeresource-innovative development.development. AA quarterquarter ofof Russia’sRussia’s oiloil andand gasgas condensatecondensate reserves and more than 70% of gas reservesreserves (their cost is more than $20 trillion [[3])3]) areare concentratedconcentrated in the Arctic zone of Russia and aboutabout 83% of gas and 12% of oil is produced there; however,however, itsits rawraw materialmaterial potentialpotential isis notnot fullyfully developed.developed. The largest oiloil and gas basins in the Arctic areare thethe EastEast Barents,Barents, SouthSouth Kara,Kara, Laptev,Laptev, EastEast SiberianSiberian andand Chukotka.Chukotka. RussiaRussia isis developingdeveloping ArcticArctic hydrocarbonhydrocarbon deposits on the Kola Peninsula, in Nor Norilsk,ilsk, in the northern regions of Western Siberia. TheThe NenetsNenets AutonomousAutonomous districtdistrict is an important centercenter of oil production, while Yamal hashas becomebecome a centercenter ofof gasgas production.production. TwentyTwenty sixsix oiloil andand gasgas fieldsfields havehave beenbeen discovereddiscovered onon the Arctic shelf, seven of which are ready forfor developmentdevelopment [ 4[4].]. The The deposits deposits are are located located in thein th waterse waters of three of three seas: seas: the Barents,the Barents, Pechora Pechora and Kara and seasKara with seas totalwith recoverabletotal recoverable reserves reserves of oil of oil about of about 0.6 billion 0.6 billion tons, gas—8.5tons, gas—8.5 trillion trillion cubic cubic meters meters [4]. [4]. The production of hydrocarbons is expected to grow in the near future. The planned volumes of productionThe production for Prirazlomnoye of hydrocarbons field—about is expected 5 million to grow tons (upin the to near 2025). future. It is expected The planned that productionvolumes of willproduction start at thefor DolginskyPrirazlomnoye field (upfield—about to 2030) and 5 million at 1–2 more tons o(upffshore to 2025). fields. It Besidesis expected at least that 10 production operating licensewill start areas at the for theDolginsky development field (up of hydrocarbons to 2030) and areat 1–2 located more in offshore the Pechora fields. Sea Besides (total recoverable at least 10 resourcesoperating arelicense about areas 600 for million the development tons of oil and of 161hydr billionocarbons cubic are meters located of in gas). the Pechora At the same Sea (total time, mostrecoverable of the licenseresources areas are contain about mainly600 million oil deposits tons of [5oil]. and 161 billion cubic meters of gas). At the sameHowever, time, most development of the license of areas these contain resources mainly is characterized oil deposits [5]. by a number of obstacles, the main of whichHowever, are the development following [4 of]: highthese cost resources of exploration is characterized work, especially by a number drilling of obstacles, exploration the wellsmain (severalof which hundred are the following million dollars [4]: high at sea cost depths of expl moreoration than work, 1000 especially m); lack of dr ailling technologically exploration simple wells alternative(several hundred to traditional million well dollars drilling at sea methods; depths andmore ine thanffectiveness 1000 m); of lack existing of a technologically systems for collecting, simple preparingalternative and to traditional transporting well extracted drilling products,methods; etc.and ineffectiveness of existing systems for collecting, preparingDevelopment and transporting of such extracted oil and gas products, potential etc. characterized by hard-to-recover hydrocarbons at greatDevelopment depths, shelf of such seas oil and and the gas Arctic potential ocean, characterized exploitation by of hard-to-recover oil deposits in hydrocarbons the later stages at ofgreat development, depths, shelf and seas the and transportation the Arctic ocean, of oil andexploitation gas across of largeoil deposits distances in the through later pipelinesstages of requiredevelopment, developed and infrastructure,the transportation qualified of oil personneland gas across and significant large distances innovation through potential. pipelines However, require innovativedeveloped developmentinfrastructure, of qualified the region personnel is affected and by significant such negative innovation factors aspotential. the following However, [2]: undevelopedinnovative development infrastructure of of the the regi Arcticon zoneis affected (transport, by such information negative and factors telecommunication, as the following market, [2]: etc.);undeveloped low profitability infrastructure of mining of the operations Arctic causedzone (transport, by the absence information of developed and telecommunication, infrastructure and developedmarket, etc.); power low energy profitability systems; theof declarativemining op charactererations ofcaused laws andby regulationsthe absence and of weak developed control overinfrastructure the implementation and developed of the power state strategiesenergy systems; and programs; the declarative and imbalance character in economicof laws andand innovativeregulations development and weak control between over the the separate implementation Arctic territories of the and state regions, strategies etc. and programs; and imbalanceA number in economic of challenges and innovative of innovative developmen developmentt between of the Arcticthe separate zone are Arctic connected territories with and the absenceregions, ofetc. a systematic approach to the innovation infrastructure [6]. A number of challenges of innovative development of the Arctic zone are connected with the absence of a systematic approach to the innovation infrastructure [6]. J. Mar. Sci. Eng. 2020, 8, 1003 3 of 18 Despite that, the natural environment of