Critics say an oil blowout in the Canadian Arctic would be much worse than the current Gulf disaster, given the ice, severe weather conditions and the lack of infrastructure in one of the world's most remote regions.

In 2008, BP paid C$1.2 billion ($1.8 billion) for rights to explore three parcels in Canada's Beaufort Sea, north of the Arctic Circle.

It has yet to announce plans to drill in the region but shortly before the U.S. disaster, BP and other oil companies urged Canadian regulators to drop a requirement stipulating that companies operating in the Arctic had to drill relief wells in the same season as the primary well.

[Canadian MP Nathan] Cullen argued the companies had made this request because drilling a relief well within the required time limit would be too expensive, given the difficult Arctic conditions.

"It's not a question of cost," said [President of BP Canada Anne] Drinkwater.

"Your submission does say it's a question of cost. ... You cite money because you're concerned about money," retorted Cullen, reading from a BP document filed with the NEB, then listing recent disasters BP had been involved in.

Drinkwater -- who said BP was not rejecting the option of a relief well -- declined to answer reporters' questions following the hearing.