Canada and Russia Arctic and Northern
Working Group
There is an increasing realization that as North America’s production of conventional
oil and gas enters a more mature stage of their production life cycle; they must look
to emerging producing regions to make up the shortfalls cause by the production
declines. Oil demand in China is projected to be 6.5 MMBbl/day by 2010, second only
to the US Forecast of 25.2 MMBbl/day. This demand may be underestimated because
China’s booming economy is growing at a rate of 30% per year. Reserves in 2004 are
depleting three times as fast as new reserves are being discovered.
It is estimated that Russian production could be increased by 15% using technologies
imported from the more mature producing countries such as Canada. Consequentially,
there will be a high demand for transporting oilfield equipment to these new producing
areas in Russia. While much of this equipment could be sent via marine transport
because it is destined for the Sakhalin Islands, which can be reached by ships,
amphibious hybrid air vehicle might have a role to play in the transport of high value
equipment that could be damaged or stolen in transit. The potential impacts and
opportunities have been explored in detail in a report prepared by LPS Aviation.
As well, industry groups are starting to work towards closer relations and develop the
bilateral aviation agreement necessary to make the flow of passengers and cargo by air
more streamlined. A group known as the Canada-Russia Arctic and North Working
Group was reconstituted in December 2004 as directed by the Prime Minister of
Canada and the President of the Russian Federation. The Arctic and North Working
Group is an advisory body to the Intergovernmental Economic Commission for
facilitating bilateral discussions on policy issues of common concern related to the
Arctic and the North
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