Fox News on August 23, 2017, published an article on how the warming Arctic spurs hunt for riches. The opening of new shipping routes is important. Excerpts below:
From a distance, the northern shores of Baffin Island in the Arctic appear barren — a craggy world of snow-capped peaks and glaciers surrounded by a sea of floating ice even in the midst of summer.
Yet beneath the forbidding surface of the world’s fifth largest island lies a vast treasure in the shape of an exceptionally pure strain of iron ore. The Baffinland mine, part-owned by a local company and ArcelorMittal, one of the world’s biggest steel producers, is believed to hold enough ore to feed smelters for decades.
As climate change pushes the cold and ice a little farther north each year, it is spurring talk of a gold rush for the Arctic’s abundant natural resources, prized shipping routes and business opportunities in tourism and fishing. In April, U.S. President Donald Trump signed an executive order to reverse Obama-era restrictions on oil drilling.
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The U.S. Geological Survey has estimated that up to 30 percent of the world’s undiscovered gas and 13 percent of oil waiting to be found are inside the Arctic Circle.
Coal, diamonds, uranium, phosphate, nickel, platinum and other precious minerals also slumber beneath the icy surface of the Arctic, according to Morten Smelror, director of the Geological Survey of Norway.
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“The Arctic is certainly among the last frontiers with respect to undiscovered mineral resources, along with the deep oceans,” said Smelror.
Apart from natural resources, the geography of the Arctic also opens up new opportunities. Sailing through the Northwest Passage could potentially cut the distance from East Asia to Western Europe by more than 10,000 kilometers (6,200 miles), compared with the traditional route through the Panama Canal, offering huge fuel savings for shipping companies.
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In general, the United States is taking a back seat for now. Washington has yet to ratify the U.N. Convention on the Law of the Sea that would regulate territorial disputes, due to concerns among some senators that submitting to international treaties would impinge on U.S. sovereignty.
Despite competing claims and tough talk to home audiences, Arctic nations are cooperating well with each other, said Rachael Lorna Johnstone, a professor of law at the University of Akureyri in Iceland.
“Everyone is following the rulebook,” she said.
Some smaller firms are pressing ahead with business in the Arctic. The Alaska-based company Quintillion is laying a fiber optic cable through the Northwest Passage to provide high-speed Internet traffic to local communities. It would also establish an additional link between London and Tokyo — where two of the world’s main stock markets are located.
The growth in adventure tourism and the lengthening summer season have produced a surge of traffic over the past decade. Last year, the cruise ship Crystal Serenity with 500 crew and 1,100 passengers paying at least $22,000 each for a four-week journey sailed through the passage.
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Climate change is even opening new avenues in agriculture. Mette Bendixen, a climate researcher at the University of Copenhagen, projects that global warming will continue into the 21st century, extending the growing season by two months.
“Not many people know that potatoes, strawberries are grown in southern Greenland,” he said.
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Despite its promise, there are several challenges holding back the development of parts of the Arctic and the use of its resources.
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While Russia and Norway are pressing ahead with new oil and gas projects along their coastlines, the seas off Alaska and northern Canada are much less accessible and any major spill would be difficult and costly to contain.
Shell relinquished most of its federal offshore leases in Alaska’s Chukchi Sea last year, after pouring billions of dollars into exploration efforts over the past decade. Former Shell leases in the neighboring Beaufort Sea have been taken over by an Alaska Native-owned company.
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The rugged nature of the Arctic also slows development. Only 10 percent of the Northwest Passage is surveyed to the highest modern standards, meaning uncharted shallows could pose a serious risk to shipping.
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Cargo hauls to the Baffinland iron ore mine are already restricted to August to mid-October, so as not to disrupt the Inuit’s ability to cross the ice to hunt, fish or trade. Such rules recognize the growing assertiveness of the region’s original inhabitants for a share of its riches, including the protection of local hunting grounds for seals and walruses.
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Daria Gritsenko, a public policy researcher traveling on board the icebreaker Nordica, cautioned that any economic excitement about global warming opening up the Arctic needs to be tempered by an understanding of the risks.
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BBC on August 24, 2017, reported that the first tanker had passed through the Northeast passage without aid of an icebreaker. Excerpts below:
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The specially-built ship completed the crossing in just six-and-a-half days setting a new record, according to the tanker’s Russian owners.
The 300-metre-long Sovcomflot ship, the Christophe de Margerie, was carrying gas from Norway to South Korea.
Rising Arctic temperatures are boosting commercial shipping across this route.
The Christophe de Margerie is the world’s first and, at present, only ice-breaking LNG carrier.
The ship, which features a lightweight steel reinforced hull, is the largest commercial ship to receive Arc7 certification, which means it is capable of travelling through ice up to 2.1m thick.
On this trip it was able to keep up an average speed of 14 knots despite sailing through ice that was over one metre thick in places.
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In 2016, the northern sea route saw 19 full transits from the Atlantic to the Pacific.
High insurance and large fees for Russian ice-breakers are still discouraging some ship owners from the riskier northern route. But the economic benefits are attractive – the Christophe de Margerie took just 19 days for the entire voyage, around 30% faster than going by Suez.
There has been an overall decline in Arctic sea ice over the past 30 years, linked by scientists to rising global temperatures. This year, according to the US National Snow and Ice Data Centre (NSIDC), the annual maximum extent of Arctic sea ice hit a record low for the third year in a row.
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