Subject: World Geography

The discovery of oil in the Arctic Sea represents a critical juncture between economic opportunities and environmental challenges, highlighted by the U.S. Geological Survey's estimate that the Arctic holds about 22% of the world's undiscovered oil and gas resources.

Economic Significance

• Energy Security: Arctic oil reserves can diversify global energy sources and reduce dependency on traditional oil-producing regions like the Middle East.

• Economic Growth: Development of Arctic resources creates employment opportunities and infrastructure development in remote regions, benefiting countries like Russia, Norway, and Canada.

• Technological Advancement: Arctic drilling necessitates innovation in extraction technologies, promoting development in the oil and gas sector.

• Market Dynamics: However, high extraction costs and global shift towards renewables challenge economic viability, as evidenced by Biden administration's 2023 ban on offshore drilling in the Beaufort Sea.

Environmental Consequences

• Ecosystem Disruption:

  • Arctic drilling threatens fragile ecosystems and endangered species.
  • Risk of oil spills is heightened due to harsh weather conditions and ice cover.

• Climate Impact:

  • Extraction activities contribute to greenhouse gas emissions.
  • Melting permafrost releases additional methane, accelerating global warming.

• Response Challenges:

  • Limited effectiveness of current oil spill response technologies in Arctic conditions.
  • Mechanical recovery and chemical dispersion methods are restricted to summer months.

Regulatory Framework

• International Cooperation:

  • Arctic Council plays crucial role in coordinating environmental protection efforts.
  • Countries like Canada implement strict regulations through Impact Assessment Act.

• National Policies:

  • Canada's moratorium on Arctic offshore activities until 2028.
  • Contrasting approach by Norway offering record exploration blocks in 2023.

The delicate balance between economic exploitation and environmental preservation in the Arctic requires a coordinated international approach, emphasizing sustainable development principles while protecting this unique ecosystem. The future of Arctic oil exploration must align with global climate commitments like the Paris Agreement and SDG 13 (Climate Action).