Russia And US To Square Off Over Energy Reserves

Russia has recently laid claim to a vast 1,191,000 sq km (460,800 sq miles) chunk of the ice-covered Arctic seabed. The claim is not really about territory, but rather about the huge hydrocarbon reserves that are hidden on the seabed under the Arctic ice cap. These newly discovered energy reserves will play a crucial role in the global energy balance as the existing reserves of oil and gas are depleted over the next 20 years. Russia has the world's largest gas reserves and is the second largest exporter of oil after Saudi Arabia, but its oil and gas production is slated to decline after 2010 as currently operational reserves dwindle. Russia’s Natural Resources Ministry estimates that the country’s existing oil reserves will be depleted by 2030. The 2005 BP World Energy Survey projects that U.S. oil reserves will last another 10 years if the Arctic National Wildlife Refuge is not opened for oil exploration, Norway’s reserves are good for about seven years and British North Sea reserves will last no more than five years – which is why the Arctic reserves, which are still largely unexplored, will be of such crucial importance to the world’s energy future. Scientists estimate that the territory contains more than 10 billion tons of gas and oil deposits. The shelf is about 200 meters (650 feet) deep and the challenges of extracting oil and gas there appear to be surmountable, particularly if the oil prices stay where they are now – over $70 a barrel. http://www.scoop.co.nz/stories/HL0707/S00304.htm URL of this article: http://www.globalresearch.ca/index.php?context=va&aid=6344

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