Oil and Gas

Several small oil fields have been identified as well as large reserves of natural gas. The Sverdrup Basin and the eastern end of Lancaster Sound have the highest known oil and gas potential. Hudson Bay also has some potential for hydrocarbons as do parts of the Foxe Basin and Davis Strait. Only one field, at Bent Horn on Cameron Island in the high Arctic, is currently in production. Approximately 100,000 cubic meters of oil is extracted per year and shipped by ice-strengthened tankers to Montreal. Further development is unlikely unless world oil prices rise significantly. Even then, environmental concerns may limit development.