As Scientists Forecasts of Global Warming Become a Reality, Artic Entrepreneurs Envision Large Economic Returns
Harper Marshall
November 7, 2006
The effects of global warming are most pronounced in the Artic. Scientists, climate researchers and conservationists are reporting higher air temperatures and observing melting icecaps, rising floodwaters and decreasing habitat for several species throughout the Artic region. While these effects are the realities of environmental pollution and increased levels of ultraviolet rays, businessmen and many politicians are recognizing that the melting ice may result in access to new energy sources, shipping routes and fishing resources.
Along with melting sea ice and permafrost, many Artic ports are remaining open for longer do to a decrease in normal frozen periods. Extending the length of time that ships can enter and leave Artic ports could mean an increase of shipping traffic because the routes shorten the journey between North America, Europe and Northeast Asia by almost half the distance compared with the main shipping routes currently used. An American railway entrepreneur, Pat Broe, is now being touted at a visionary, because of his purchase of the Port of Churchill for a mere $7 U.S. Dollars. Churchill is located in the northern Manitoba Province of Canada and is positioned to be a very valuable shipping port if the ice continues to retreat and the region is clear for a longer shipping period. Mr. Broe is forecasting that the Churchill port could be worth upwards of $100 million a year in shipping revenues if the ice continues to melt as expected.
Associated with the increased access to shipping routes, is the possibility of increased exploration into the Arctic's vast natural resources. The Artic's potential for exploitation of energy sources, mainly natural gas and oil, has some analysts calling the area "the next energy frontier." This has virtually every large international energy company researching the possibilities for exploring and exploiting the region. With this increased interest into the area, along with the possible huge amounts of money at stake, several countries are looking to reassess their territorial claims to the area. The Artic territory is divided between eight countries: Norway, Sweden, Finland, Denmark, Iceland, Canada, Russia, and the United States. Thus, there are likely to be a host of foreign-policy issues and how these issues will be resolved is an unknown. The treaty called the United Nations Convention on the Law of the Sea may be a tool that is used to determine a countries territorial boundaries. Under the treaty, territory is determined by how far a nation's continental shelf extends into the sea.
Whether the Artic proves to be a lucrative economic area is yet to be determined, but what is clearly apparent is the affects of global warming in the region. The indigenous Inuit peoples that depend on the ice being frozen for their livelihoods are feeling the effects. The polar bears also feel the effects because a decrease in the frozen period results in a decrease in the bears opportunity to hunt and ultimately survive. These are only a few examples of the very real effects of global warming on the Artic region. Although humans, especially American's like the savvy Mr. Broe, will always find a way to profit and excel in dire situations, the eight countries with legitimate claims to the Artic must concern themselves with the long-term negative effects of global warming as well as determining the potential beneficial externalities stemming from the worlds pollution.
For more information see:
http://www.nytimes.com/2005/10/10/science/10arctic.html?pagewanted=7&ei=5088&en=1f4059714b781260&ex=1286596800&partner=rssnyt&emc=rss
http://www.spiegel.de/international/spiegel/0,1518,409001,00.html