FAR EASTERN OIL: A CHANCE OR A FEED BIN

All regions of the Russian Far East, earlier on a rise however hard and painful, now are thrown into a precipice with a vertical elevation. Non the less, recovery may be possible still, providing we meet one very well known condition of developing the carbohydrates deposits, from Sakhalin oil fields in the south and to Bering and Okhotsk in the north. But who will undertake this? Apology for the reformers, they ravaged the economy to such an extent that they depleted their own financial means to further develop oil and gas fields in the traditional West-Siberian region. The "Hydra of the world capitalism" sees the gas and oil exploration of Russian oil and gas resources an unconditionally ludicrous deal. So does it see, that this will be no less beneficial for the Russian side. Therefore the Hydra would not rush up. Better let the fruit get ripe - no one wants economically strong Russia in the Arctic and North Pacific regions. The only hope is that Hydra's heads think separate from each other. However, only politicians of independent and solid standing can take advantage here. Those who can manage the economy without an army of overseas advisers. By the way, all this army, it terms of competence, stand no remote comparison to our former Gosplan (State Planning Committee) professionals, first victimized by former leaders" volunteerism and court schemer economists, then disbanded by "democrats". It is evident already today, for example, that so called antimonopoly hullabaloo and privatization rush turned out to the benefit of the world monopolies only.

So what is the basis for my optimism? According to Magadan scientists, within the northern territories and offshore basins of the Sea of Okhotsk, Bering Sea, Chukotka and East Siberian Sea, clearly identified were about ten deposition basins with major oil and gas structures. The resource volume in these basins accounts for 68 percent of all forecast reserves of the Russian Far East (the portion of somewhat utilized Sakhalin reserves makes about 17 percent and that of Kamchatka 14 percent). The total area of the basins is estimated at 2.5 million square kilometers and the summed up area of the oil and gas carrying structures 1.5 million square kilometers. Over 90 percent of the forecast fossil carbohydrate reserves is reported to accumulate within the sea shelf boundaries. All of the basins are included into three regions of perspective oil and gas extraction. The largest, in terms of predicted reserves, is the Sea of Okhotsk basin, where 75 auspicious structural taps were found, including 40 extremely large ones (from 250 to 2500 square kilometers). The promising Koryaksko-Anadyr region includes the Southern Chukotka basins, partially located on shore and extending on to the Bering Sea. About a fourth of all deposits are on shore.

Extractable resources of the adjacent Bering Sea are determined as 120 million tons of oil and 500 billion cubic meters of gas. Severo-Chukotskiy, Longsko-Chukotskiy and Chaunskiy basins relate to the Northern Chukotka region. The first of them extends along the external border of the Arctic Shelf from the structural zones of the North America, where large oil and gas deposits were found and successfully exploited bringing the affluence to the state of Alaska. The eastern part of the Longsko-Chukotskiy basin is very intensively studied by American oil and gas corporations. The forecast extractable reserves of these basins are evaluated at 2-5 billion metric tons of conventional fuels. Of great interest was also the Navarinskiy basin, located at the junction of the U.S. and Russian economic zones in the Bering Sea. According to the estimations of American experts, some 160 million tons of oil and 200 billion cubic meters of gas can be predicted in this location. At April 1985 tender, U.S. Mineral Resources Board sold licenses for 24 sites within the zone in question totaling 150 million dollars in sales. The sites were transferred into licensees operation for 5 years, within which period all border issues were supposed to be adjusted. The Board guaranteed the return of payment, should the border arguments be resolved not in the U.S. side's favor. In 1990 our leaders, as is widely known, signed the agreement on the border line in the Bering Sea, upon which the disputed zone passed to the U.S.

The oil and gas resources are to become that miracle that will redeem the economy of the Russian Far East. However, one important condition will have to be met, independent enough policy in Moscow and in the provinces. One cannot rely on minions. As soon as we start getting visual confirmation, let alone full scale extracting, of these incalculable riches, other industries will come to life such as gold and non-ferrous metals mining, seafood processing, and tourism. Even the mercilessly exploited alluvial gold deposits of Severo-Piston, in spite of their depletion, represent serious resource potential given the renewal technologies for metal extraction.

Having no financial means for oil and gas carrying basins, it is necessary at least to realize the potential riches that we possess, and spare them for our grandchildren and grand-grandchildren, rather than act like savages giving out all vitals in exchange for glittering trifles. Our primary task is to keep the proper scientific support for the oncoming development of "black and blue gold" deposits.