War at the top of the world.
Twenty-five percent of the world's untapped oil supplies is estimated be located in at the North Pole in the sea under the polar cap. The US Geological Survey report (press release here), the largest-ever survey of energy resources north of the Arctic Circle, found that the area holds an estimated 90 billion barrels of oil and 1,670 trillion cubic feet of natural gas. For most people this would be great news.
The U.S. must worry about "protecting endangered species, native communities and the health of our planet", before one snowflake can be disturbed. Where exactly is the crude and who ownes it? From Bright Green Blog, Christian Science Monitor:
Who owns it?
Recent years have seen a race among the Arctic powers – the United States, Russia, Denmark, Canada, and Norway – to lay claim to the ocean floor at the North Pole.
But the USGS estimates that most of the oil is not at the pole, but near Canada, Russia, and the United States. The USGS found that more than half of the oil resources are in just three regions: Arctic Alaska (30 billion barrels), the Amerasia Basin (9.7 billion barrels) and the East Greenland Rift Basins (8.9 billion barrels).
More than 70 percent of the natural gas is thought to occur in three regions – the West Siberian Basin, the East Barents Basins, and Arctic Alaska.
So it looks as though Arctic Alaska has the greatest energy potential, with Russia also having an important stake as well, particularly in natural gas. But there is undoubtedly also some oil and natural gas in Arctic regions whose sovereignty is disputed.
The Globe and Mail, a Canadian daily, provides a breakdown of exactly where and how much all the oil and natural gas is
While "Flag-planting has nothing to do with ownership, said David Caron, director of the Law of the Sea Institute at the University of California, Berkeley", that is exactly what Russia has done.
Russian Vladimir Putin is trying to tap the Arctic's vast potential
oil, gas and mineral wealth -- gas, oil and diamonds. Russian Prime Minister Vladimir Putin in July, toured a new Arctic oil
rig intended to boost Moscow's position in the intensifying competition
for northern energy reserves. President Dmitry Medvedev signed a law enabling the Kremlin
to handpick companies to develop the vast oil reserves believed to be
located in the Russian Arctic.
Russians, in early August used a minisub to plant a Russian flag to the bottom of the ocean, 2.5 miles (4 kilometers) beneath the North Pole.
Denmark has sent an icebreaker on geological mission to study the seabed north of Greenland to see if it might be an extension of the island (which is owned by Denmark).
The Healy, a U.S. Coast Guard icebreaker, is mapping the seabed north of Alaska. Canada has announced the creation of two new Arctic military bases and has budgeted the equivalent of five billion U.S. dollars for eight new icebreakers to protect its interests. (National Geographic News)
"None of the countries have fully articulated it [ownership]."
"None of the countries have fully articulated it."
Traditionally, countries are granted exclusive oil and gas rights to territorial waters within 200 nautical miles (230 miles/370 kilometers) of their coastlines.
But territorial-waters claims may be extended if the nation's continental shelf extends farther from land. (continue reading about ownership)
Traditionally, countries are granted exclusive oil and gas rights to territorial waters within 200 nautical miles (230 miles/370 kilometers) of their coastlines....
But territorial-waters claims may be extended if the nation's continental shelf extends farther from land.
Russia has begun a push to claim a vast chunk of disputed Arctic territory in an aggressive campaign to win control of the region's oil and gas resources. (TimesOnline)
A Russian research submersible prepares to dive beneath the Arctic ice to search for the region’s riches
A state-sponsored expedition, led by a Moscow geographical institute, is in the region gathering scientific data in an attempt to prove that vast swathes of the seabed belong to Russia.
Norwegian energy authorities have completed a seismic survey of Arctic waters near the scenic Lofoten islands
One third of the undiscovered oil is in Alaskan territory, according to the U.S. Geological Survey -- but that's another story and since the Democrat-controlled Congress adamantly refuses to let drilling occur for the oil known to exist in and off-shore Alaska. Also, Alan Caruba asks, "Can you imagine gifting the United
Nations with $50 trillion in Arctic oil taxes? That is what the U.S.
Senate proposes to do if it ratifies LOST."
... Worse yet, we stand to lose any of the wealth it will generate if the same Congress signs the United Nations Law of the Sea Treaty, whose acronym, LOST, could not be more accurate. The Joint Chiefs of Staff have endorsed it, apparently oblivious to the fact that the mighty U.S. Navy can go anywhere it wants in the world. Even the Bush administration has marshaled no arguments against it. [snip]
“The Arctic may hold 90 billion barrels of oil, more than all the known reserves of Nigeria, Kazakhstan, and Mexico combined, and enough to supply U.S. demand for 12 years.” One would have thought Joe Carroll’s Bloomberg News report would have evoked some interest by the public and other media outlets. Instead, news of the U.S. Geological Survey was greeted mostly by a giant collective yawn. (--Alan Caruba)
On August 2, 2007, two 26-foot-long Russian submersibles, Mir-1 and Mir-2, descended through a hole in the ice at the North Pole.
In Spring 2006, Canada Southern Petroleum, a company with significant reserves inside the Arctic Circle, received a takeover offer of $7.50 per share, nearly a 60 percent premium on its stock price. By the time the company was sold four months later to another Canadian firm, it went for $13.10 a share. (CNN)
Now we have concerns about the Northwest Passage:
"The Northwest Passage is actually passages, there's more than one," explained Scott Borgerson, a former lieutenant commander in the US Coast Guard who is now with the US Council on Foreign Relations. "For the shipping routes what's at stake is potentially an incredible shortcut between the North Atlantic and the North Pacific that is many thousands of miles shorter than going through either the Suez or Panama canals."
By some estimates, the new shipping routes could cut 8000 kilometres, or up to 40 per cent, off the distance from journeys between Europe and Asia. A new Arctic route would force competitive shipping charges on both the Suez and Panama canals and save companies million of dollars, Borgerson told the Herald.
The debate over the Northwest Passage is becoming supercharged with the realisation that the Arctic is a treasure trove of natural resources, oil, gas and coal - the very fossil fuels, ironically, contributing to global warming. (The Sydney Morning Herald)
From Oil and Gas Online:
To learn more about the USGS Circum-Arctic Resource Appraisal and to see results of the assessment, please visit http://energy.usgs.gov/arctic.
For a podcast interview about the USGS Circum-Arctic Resource Appraisal, listen to episode 55 of CoreCast at http://energy.usgs.gov/arctic.




































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