Sheila McNulty points out that the recent US Geological Survey report on the size of possible undiscovered oil and gas resources in the Arctic suggests that the central Arctic isn't very interesting: Deep freeze entices energy hungry world:
Yet the first comprehensive governmental assessment of the region, by the US Geological Survey (USGS), revealed last week that most of the big finds appear to be in areas already under territorial claim.
Indeed, US government scientists said the North Pole itself did not appear “very interesting’’ as a home for fossil fuels. Besides that, Andrew Latham, vice president for Wood Mackenzie’s Upstream Consultancy, said the 4km water depth of the North Pole would be beyond deepwater production technology, even if it was not thick with summer ice.
The result is likely to be a shift in focus from the potential for Arctic conflict to how quickly each of the countries whose territorial claims stretch into the Arctic circle can develop their respective resources.
The editorial writer for the Calgary Herald thinks the race is for a first-mover advantage: Red tape ties up McKenzie Plan:
This week's developments around the Alaska line [a gas pipeline to bring gas from the U.S. North Slope across Canada toa pipeline hub in Alberta - Ben] --the state's 40-member House of Representatives voted 24 to 16 Tuesday in favour of Bill 3001, which grants Calgary-based TransCanada Corp. an exclusive state licence to proceed with the project plus $500 million US worth of subsidies -- should add a sense of urgency for those involved with Canada's $16-billion Mackenzie Gas Project, McLeod said in an interview.
"Mackenzie is the biggest industrial project in Canada and I can't see the federal government letting it slip through our fingers with the Alaska project now seemingly getting off the ground," McLeod said from Vancouver.
It has long been felt the smaller project from the Mackenzie Delta in the Northwest Territories south to Alberta would die if Alaska was built first, as the delivery of so much natural gas from the Prudhoe Bay fields could soften North American natural gas prices enough to erode Mackenzie's economics.
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