Oil can come from many sources, but most is produced from plankton, either in the ocean or lakes. Some can come from benthic (bottom dwelling) organisms like algae, but that is a minority.<br /><br />To get oil you first need high prouctivity. This is a feature of polar waters at least at present because of high productivity. that is why some of the world's richest fisheries are in the polar regions.<br /><br />Then you need to preserve the organic matter. This means reducing bottom waters, and a stratigied water column. At present this only happens naturally in some lakes and the Black Sea. In the past though there have been epochs when the entire ocean has been stratified. This way the organic matter can be buried and preserved, rather than be destroyed by dissolved oxygen and consumed by other critters.<br /><br />Large plant accumulations produce coal rather than oil. Some coals also produce gas, sometimes in significant amounts. Small amounts of oil can be found in some coal deposits if the plants were waxy and/or there were lakes full of algae in the coal forming environment.<br /><br />The Arctic certainly was warmer in the past, like the Eocene, as some have mentioned. I am not sure what age the sediments are that the Russians think might be prospective.<br /><br />There are producing oil fields in the Arctic. The Alaskan north slope for example, and there has been exploration in both the Canadian arctic archipelago and in northern Siberia, both onshore and offshore.<br /><br />Hope this helps<br /><br />Jon <div class="Discussion_UserSignature"> <p><em>Whether we become a multi-planet species with unlimited horizons, or are forever confined to Earth will be decided in the twenty-first century amid the vast plains, rugged canyons and lofty mountains of Mars</em> Arthur Clarke</p> </div>