Photo: dfbarrero, Creative Commons, Flickr
The U.S. government estimates that a fifth of the world’s recoverable and undiscovered oil and natural gas are in the Arctic.
On July 23rd, the United States Geological Survey released a report that names the Arctic as a major possible source for oil and natural gas. In fact, the USGS report estimates that more than one-fifth of the undiscovered (and recoverable) oil and natural gas resources can be found in the Arctic. Of course, getting at those resources presents its own set of problems, reports the Wall Street Journal:
But any attempt to create an Arctic drilling frenzy will likely meet strong resistance from environmentalists worried about the impact on what is still a near-pristine wilderness. And it could trigger a flurry of territorial disputes over who controls the oil and gas under the Arctic seabed.
One of the biggest territorial issues, though, is likely to be with Russia. Consider: natural gas, according to the USGS report, is much more abundant than oil. But most of those natural resources are located in Russia. And Russia is already at odds with American companies investing in its energy resources. Not only that, countries with territory above the Arctic Circle are clambering to claim the North Pole and other "new" areas in the central Arctic Ocean.
Among the biggest reasons that the Arctic is even being considered right now is global warming. With Arctic ice melting many of the oil and gas fields that are now inaccessible will be easier to reach in a matter of years. Some "new" areas of the Arctic are already opening up — areas that five years ago would never have even been considered.
Getting the oil and gas out is another concern that has plagued the idea of opening the Arctic to drilling. Happily, for those with an interest in continuing our use of fossil fuels, climate change is helping out with that as well. The Northwest Passage is increasingly ice-free, and considered a possible trade route between Asia and Europe. The absence of ice floes capable of crushing ships carrying drilling equipment — as well as carrying oil and gas out of the Arctic — will be a boon to hydrocarbon energy development in the future.
Exxon (XOM), Royal Dutch Shell (RDS-B) and BP (BP) are among the Big Oil companies hurrying to the Arctic to acquire the rights to explore possible gas and oil fields — mostly in northern Canada and off the coast of Alaska.
The Arctic certainly won’t solve any short-term energy problems — production from Arctic oil and gas fields is still years away. But it could affect our energy practices long term. Will focus once again move away from alternative energy while we continue our obsession with fossil fuels? It’s a very real possibility that the Arctic will only prolong our current destructive path: continued reliance on fossil fuels, even as they run out while harming the Earth overall.
Disclosure: I do not invest in Big Oil.
Site disclaimer.