View Full Version : Arctic Oil


dmantom
09-19-2008, 08:47 AM
Medvedev says Arctic resources key to Russia's economic future
Posted By Nataliya Vasilyeva, the Associated Press



President Dmitry Medvedev says it is imperative that Russia immediately begin marking its claims in the Arctic.

Speaking to his Security Council, Medvedev described the region as "strategically important" and crucial to Russia's economic future.

Medvedev says he is urging speedy passage of a law to determine Russia's southern Arctic zone.

He adds that "marking of the external border of the continental shelf is a long-term goal."

Already, some 20 per cent of Russia's gross domestic product and 22 per cent of its exports are produced in the Arctic.

Russian oil companies are already posting declines in production as onshore oil and gas fields are getting depleted. Energy experts say the Arctic continental shelf may contain up to a quarter of the world's undiscovered oil and natural gas.

"The use of these energy reserves is a safeguard for Russia's energy security," Medvedev said. "It is our duty to our descendants. We have to ensure the long-term national interests of Russia in the Arctic."

Russia, the United States, Canada, Denmark and other northern countries are trying to assert jurisdiction over the Arctic, whose oil, gas and minerals until recently have been considered too difficult to recover.

Prime Minister Stephen Harper used a visit to the Arctic last month to announce his government's initiatives in the North, including pledges of major military infrastructure and equipment. One of them is a new $720-million state-of-the-art icebreaker to replace the coast guard's current flagship icebreaker in 2017.

Meanwhile Canadian geologists are garnering support for their country's disputed claim to large swaths of the Arctic seabed and any resource riches that lie below among from international scientsts.

During an international geology conference in Oslo last month, Canadian and Danish scientists presented their joint findings contending that an undersea mountain range called the 2,000-kilometre Lomonosov Ridge is part of the North American continent.

Canada and Denmark have been adversaries in other aspects of Arctic territorial claims, but they teamed up in this case to refute Russian findings - also being presented in Oslo - that Lomonosov is actually connected to Siberia.

The dispute over who controls what has become more heated with growing evidence that global warming is shrinking polar ice, opening up new shipping lanes and resource development possibilities.

Nikolai Patrushev, chief of the Russian Security Council, told reporters after Wednesday's meeting that Russia realizes other Arctic states may oppose its expanding influence in the region.

"We must defend our interests, but we understand that Arctic states such as Canada, Norway, Denmark and the United States will be defending their interests," Patrushev said.

Moscow last year sent two mini-submarines to plant a Russian flag on the seabed under the North Pole and take soil core samples.

Russian officials contend preliminary results on the samples show that the Lomonosov Ridge under the Arctic is part of Russia's continental shelf.

More geological tests are planned by Russia and other countries with rival claims.

tracey2234
09-19-2008, 11:02 AM
Interesting...Thanks for the good read.

mefnikk
09-19-2008, 12:01 PM
Silly Russian mortals that believe Oil is the answer. Spend your billions...Oil will be far less valuable in the not so distant future.

Grandpooba
09-19-2008, 12:16 PM
Silly Russian mortals that believe Oil is the answer. Spend your billions...Oil will be far less valuable in the not so distant future.

Oil will still be in demand for the next 10 to 15 years minium, as China, India, and many others don't have the infrastructure for alternatives in the quanity required.

mefnikk
09-19-2008, 12:54 PM
Grandpooba, I see what you are saying. Yes, oil will be in demand and probably even longer than the 10-15 years that you estimate. However, the price will be dropping drastically in the coming years as alternative energy sources are explored and implemented. Even if China and India have zero alternative energy, a good majority of the world will to some degree. If production of oil continues as it has plus Artic drilling is then used, production will outway demand thus driving the costs down.

All I am saying is that oil is not going to be as profitable in the near future. And the use of oil is working its way toward extinction not toward a booming business. Alternative energy is inevitable and oil will no longer be the standard. Seems pointless to begin drilling more and more and more. We should all be working towards a viable solution. That includes big oil. With the profits that EXXON has generated you would think they would be thrilled to explore alternative energy.

Grandpooba
09-19-2008, 02:35 PM
I'm of the Drill, Drill, Drill, ilk. As the more sources of power for sale the lower the cost. To drive the cost toward green, tax the carbon.

kndtrpts
09-19-2008, 04:26 PM
thanks for the great read, Big D.

good discussion there, guys.