A method of pumping oil in the Arctic in which an oil pipeline is located inside a natural gas pipeline. The cold natural gas pipeline insulates the warm oil pipeline and prevents the latter from melting the permafrost. Alternatively, alternate slugs of oil and gas can be pumped through one pipeline or through two pipelines located side-by-side, the temperatures and volumes of the gas slugs being controlled so that the temperature at the exterior of the pipeline installation remains below 32 DEG F.
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