Arctic Oil Case Study

Question 1

Background:

Answer 1

This place is estimated to contain up to 25% of the world’s
undiscovered oil and natural gas. Issue regarding who can lay claim to which parts of the ocean – Russia has claimed nearly half of the Arctic but other interested parties e.g. USA, Norway failed to uphold their claim.

Question 2

Problems:

Answer 2

 Oil companies have already destroyed large parts of
Alaska and Siberia so should be kept out of the Arctic
 New oil rush in the Arctic is only possible because of
the increased shrinking of the polar ice cap due to global warming
 The Arctic is a pristine environment containing over 45 species of land and marine animals
 Issue over who has the right to claim ownership of the natural resources – countries who have been conflicting over this have now agreed to sign the UN Law of the Sea Convection stating the 8 Arctic states are allowing to exploit offshore resources within 200 nautical miles of their territory

Question 3

Benefits:

Answer 3

 At around $70 per barrel it makes drilling in the Arctic viable. (2007 prices reached $100).
 Contains up to 25% of the world’s undiscovered oil and natural gas

Question 4

Players involved:

Answer 4

1. Arctic States – USA, Russia, Canada, Norway, Denmark, Finland, Sweden and Iceland
2. UN – will decide the control of the Arctic by 2020
3. Local people
4. Environmental Pressure groups