Natural Gas

In the latest round of “grab it while you can” in the Arctic frontier, Canadian Prime Minister Stephen Harper says his country is extending its jurisdiction in the region by doubling the range at which the country’s environmental laws and shipping regulations will be enforced.

Canada is laying claim to vast Arctic frontier regions as national territory and has said it sees the Northwest Passage as an internal waterway and not an international transit point. An ice-free Northwest Passage would be a huge benefit for tankers and ships going from Europe to Asia and from Asia back to Europe or the East Coast of the U.S. Canada is preparing to defend its claims with the building of a Northern Fleet of Arctic-class patrol ships.

“Whether it is the thawing of the Northwest Passage or the suspected resource riches under the Arctic seabed, more and more countries are taking an interest in the waterways of the Canadian Arctic,” Harper says. “We will be sending a clear message to the world that our environmental standards and sovereignty are not up for debate — if you are in Canada’s Arctic you will be playing by Canada’s rules.”

Harper says that his government will introduce changes to the Arctic Waters Pollution Prevention Act. As currently written, the act allows Canada to regulate all shipping in zones up to 100 miles from the nearest Canadian land. Under the proposed rule, this zone will now be extended to 200 miles.

In addition, Harper says his government will set up new rules under the Canada Shipping Act of 2001 that will require mandatory reporting from all ships–commercial or military–enroute to Arctic waters inside the same 200-mile zone.

“As an environmental matter, as a security matter and as an economic matter we are making it perfectly clear that not only do we claim jurisdiction over the Canadian Arctic, we are also going to put the full resources of the government of Canada behind enforcing that jurisdiction,” Harper says. “We are acting today to protect our environment, improve the security of our waterways and ensure that all Northern residents – and, in particular, the Inuit – have a strong say in the future of our Arctic for generations to come.”

Canada joins Russia in making major frontier claims for the Arctic. As the ice pack thaws, some scientists have speculated that huge oil and gas deposits may become open to E&P operations. If Canada controls those regions, then it controls who can drill there as well as reap the economic benefits of any drilling that does take place.

Stay tuned. More to come. The great land rush into the Arctic is just beginning. It probably won’t make a lot of big headlines, but it is interesting to watch as nations rush to secure their place at the energy table as more and more of the Arctic becomes accessible.

–John A. Sullivan, News Editor, Oil and Gas Investor, www.OilandGasInvestor.com, jsullivan@hartenergy.com

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