The East Coast and Arctic basins of Canada have been under serious hydrocarbon exploration for over 20 years. While the density of drilling is low, extensive seismic control has outlined a high proportion of the structures in these basins, and the stratigraphic framework of the basins is known from the 600 wells that have been drilled. The five most thoroughly explored basins include the Beaufort, Sverdrup, Labrador, East Newfoundland, and Scotian basins. Examples of discoveries from each of these basins illustrate the factors that control the accumulation of hydrocarbons.

The physical environment in these Canadian basins is severe, and while great strides have been made in coping with the environment, the cost of doing so is becoming increasingly onerous. There is a growing sense of appreciation regarding the cost, risk, and time that will be involved in developing these resources. The vast reserves of oil in the tar sands of western Canada provide a competitive ceiling that will limit the future development in the East Coast and Arctic basins of Canada to those projects in which production costs are not significantly higher than those of the tar sands.

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