IT'S more than a drop in the ocean.
Billions of pounds of oil could be under unexplored volcanic rocks to the west of Shetland.
Scientists believe that rocks formed by huge rivers of molten lava tens of millions of years ago could host up to 500 million barrels of oil.
US oil com
pany Chevron is trying to pinpoint the oil as other experts develop technology to drill through the extremely hard rock.
When the lava solidified it became basalt rock, which is exceptionally tough to drill through, and which also causes problems for seismic surveyors trying to pinpoint oil beneath it.
The search comes as the UK is looking for new oil reserves to bolster the economy and as rocketing oil prices have made the most expensive and challenging exploration projects seem viable.
James Dickson, Shetland's general manager for ports and harbours operations, said: "It is not a matter of if, but when, as our oil and gas in the UK is on the downward trend and is over $110 per barrel, so there will be an incentive to go for areas which have not been exploited before."
The key areas are located in an area known as the Faroe-Shetland basin, which lies partly in the UK sector of the North Atlantic and partly in the Faroese area. The Faroes are keen to develop oil refining to help their economy, which relies on heavily on fishing and subsidies from Denmark.
Oil companies have found hydrocarbons in similar rock strata off the coasts of South America and Africa. And in the North Atlantic, a basalt area off the East coast of Greenland is believed by the US Geological Survey, to have as much as 500 million barrels of oil. The area, known as the Thetis Basin, is a similar size to the volcanic shelf which lies around the Faroes and which extends into UK waters.
Previous studies have suggested that the UK possesses a total of 20 billion barrels of oil in all and produces about 1.7 million barrels a day.
The Faroese government and Shetland Council have been in talks about a deal which would involve oil being piped ashore to the oil terminal at Sullom Voe in Shetland, with the Faroese receiving royalties for oil found in their sector.
At the same time, US-based oil company Chevron has been drilling in the area. Chevron managing director Rick Cohagan said: "We are gathering good data that will help us to determine next steps for our interests in the region."
Meanwhile, scientists are developing ways to improve the way the oil is pinpointed.
Dr Simon Passey, of the Faroese Earth and Energy Directorate, said: "Until very recently, the focus was on sedimentary rocks, because they were much easier to explore and much easier to drill through. The density of basalt means it is very difficult to run seismic surveys in the area and find the hydrocarbons (oil and gas], and it is very expensive just to point a drill down and see what happens."
Shetland already benefits from oil, which makes up 15% of the islands' economy, and is worth £116m a year. A substantial amount of the UK's existing oil production comes from areas to the east of the islands, including the Brent field, one of Britain's oldest production areas. Sullom Voe oil terminal has already processed more than seven billion barrels of oil since opening in 1978.
Tavish Scott, the Shetland MSP, said: "It would be very positive and very exciting if more oil were discovered West of Shetland. And if it were found in the Faroese sector then it would be processed through Sullom Voe because the companies would not be willing to have another terminal built in the area. So Shetland will benefit."
The full article contains 636 words and appears in Scotland On Sunday newspaper.
