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Julian Lee

The Arctic Threat to the Price of Oil

Russia's oil flows from its frozen north are soaring, which will test its adherence to the OPEC output deal.

When Saudi Arabia's oil minister attended Friday's grand opening of a giant liquefied natural gas plant in northern Siberia, he'd have known this was just part of a bigger energy story developing in Russia's icy north. It's not just gas that's a big deal there. Russia's Arctic oil flows are soaring too.

These are not the putative offshore fields that energy supremo Igor Sechin touted five years ago as Russian oil's future. Arctic exploration has been all but halted by cheap oil and Crimea-based sanctions. But other development projects in the region have quietly gathered momentum, yielding almost 400,000 barrels a day of exports.