Low oil prices have caused international oil companies to think twice about investing in Arctic extraction, but with prices on the rise it is only a matter of time before businesses tap into what has long been considered the final frontier for energy resources, according to Eurasia Group.
So far this year, oil has been trading at slightly over $50 per barrel, up significantly from the lows of early 2016 but still well below the highs of around $115 per barrel seen in mid-2014.
"In this current oil price environment, it (Arctic drilling) is really not very feasible," Emily Stromquist, senior analyst at Eurasia Group, said.
"You're not looking at particularly great economics for Arctic projects as long as we stay in the $50 to $60 per barrel oil price range."
Petroleum exploration in the Artic is costly and technically complex, making it largely unviable for oil companies despite the region containing an estimated 13 percent of the world's untapped resources. Included in this could be as much as 90 billion barrels of oil, according to United States Geographical Survey estimates.
This is good news for policymakers and environmental activists who have been attempting to regulate drilling to manage potential oil spills and the displacement of indigenous communities.