As Polar Ice Turns to Water, Dreams of Treasure Abound

By CLIFFORD KRAUSS, STEVEN LEE MYERS, ANDREW C. REVKIN and SIMON ROMERO

This article is by Clifford Krauss, Steven Lee Myers, Andrew C. 
Revkin and Simon Romero.

CHURCHILL, Manitoba - It seems harsh to say that bad news for polar 
bears is good for Pat Broe. Mr. Broe, a Denver entrepreneur, is no 
more to blame than anyone else for a meltdown at the top of the world 
that threatens Arctic mammals and ancient traditions and lends 
credibility to dark visions of global warming.

Still, the newest study of the Arctic ice cap - finding that it faded 
this summer to its smallest size ever recorded - is beginning to make 
Mr. Broe look like a visionary for buying this derelict Hudson Bay 
port from the Canadian government in 1997. Especially at the price he 
paid: about $7.

By Mr. Broe's calculations, Churchill could bring in as much as $100 
million a year as a port on Arctic shipping lanes shorter by 
thousands of miles than routes to the south, and traffic would only 
increase as the retreat of ice in the region clears the way for a 
longer shipping season.

With major companies and nations large and small adopting similar 
logic, the Arctic is undergoing nothing less than a great rush for 
virgin territory and natural resources worth hundreds of billions of 
dollars. Even before the polar ice began shrinking more each summer, 
countries were pushing into the frigid Barents Sea, lured by undersea 
oil and gas fields and emboldened by advances in technology. But now, 
as thinning ice stands to simplify construction of drilling rigs, 
exploration is likely to move even farther north.

Last year, scientists found tantalizing hints of oil in seabed 
samples just 200 miles from the North Pole. All told, one quarter of 
the world's undiscovered oil and gas resources lies in the Arctic, 
according to the United States Geological Survey.

The polar thaw is also starting to unlock other treasures: lucrative 
shipping routes, perhaps even the storied Northwest Passage; new 
cruise ship destinations; and important commercial fisheries.

"It's the positive side of global warming, if there is a positive 
side," said Ron Lemieux, the transportation minister of Manitoba, 
whose provincial government is investing millions in Churchill.

If the melting continues, as many Arctic experts expect, the mass of 
floating ice that has crowned the planet for millions of years may 
largely disappear for entire summers this century. Instead of the 
white wilderness that killed explorers and defeated navigators for 
centuries, the world would have a blue pole on top, a seasonally open 
sea nearly five times the size of the Mediterranean.

But if the Arctic is no longer a frozen backyard, the fences matter. 
For now it is not clear where those fences are. Under a treaty called 
the United Nations Convention on the Law of the Sea, territory is 
determined by how far a nation's continental shelf extends into the 
sea. Under the treaty, countries have limited time after ratifying it 
to map the sea floor and make claims.

In 2001, Russia made the first move, staking out virtually half the 
Arctic Ocean, including the North Pole. But after challenges by other 
nations, including the United States, Russia sought to bolster its 
claim by sending a research ship north to gather more geographical 
data. On Aug. 29, it reached the pole without the help of an 
icebreaker - the first ship ever to do so.

The United States, an Arctic nation itself because of Alaska, could 
also try to expand its territory. But several senators who oppose any 
possible infringement on American sovereignty have repeatedly blocked 
ratification of the treaty.

Indeed, not everyone agrees that warming of the Arctic merits 
concern. No one knows what share of the recent thawing can be 
attributed to natural cycles and how much to heat-trapping pollution 
linked to recent global warming, and some scientists and government 
officials, particularly in Russia, are dismissive of assertions that 
a permanent change is at hand.

"We are not going to have apple trees growing in Vorkuta," said the 
mayor of that coal-mining city, Igor L. Shpektor, who is also the 
president of Russia's union of Arctic cities and towns.

But the current thaw is already real enough for the four million 
people within the Arctic Circle, including about 150,000 Inuit. "As 
long as it's ice," said Sheila Watt-Cloutier, leader of a 
transnational Inuit group, "nobody cares except us, because we hunt 
and fish and travel on that ice. However, the minute it starts to 
thaw and becomes water, then the whole world is interested."

Increasingly, big corporations, the eight countries with Arctic 
footholds and other nations farther south are betting on the 
possibility of a great transformation. Energy-hungry China has set up 
a research station on the Norwegian island of Spitsbergen and twice 
deployed its icebreaker Snow Dragon, which normally works in 
Antarctica, to northern waters to conduct climate research.

Interest in Arctic-hardy vessels has picked up so much that in 
January, Aker Finnyards, a giant shipbuilder based in Helsinki, 
created a subsidiary just to develop ice-hardened ships. Its new 
double-ended tanker slips smoothly through open water bow first but 
can spin around and use an icebreakerlike stern to smash through 
heavy floes. A Finnish energy company bought two for about $90 
million apiece, and after buying one Russia licensed the design and 
is building two more.

In January, the State Department's Bureau of Intelligence and 
Research held a closed two-day meeting to hear from experts on the 
implications of a warming, opening Arctic.

"There are likely to be a number of foreign-policy issues that must 
be addressed by the United States and other nations" if the climate 
trends persist, said a summary of the meeting. "These issues include 
the availability and potential for exploitation of energy, fisheries 
and other resources; access to new sea routes; new claims under Law 
of the Sea; national security; and others."

A look at a map of the globe with the North Pole at its center 
explains why a new frontier matters. Some countries that one might 
think of as being half a world part appear as startlingly close 
neighbors, and relatively speaking, they are.

In the days of empire, Rudyard Kipling called jockeying among world 
powers in Central Asia the Great Game. Christopher Weafer, an energy 
analyst with Alfa Bank in Moscow, says this new Arctic rush is "the 
Great Game in a cold climate."

The Petroleum Rush

To understand the practical terms of this new competition for 
territory, opportunity and resources, a good place to begin is 
Hammerfest, Norway, one of the northernmost towns in the world and 
one of 12 Arctic settlements visited over six months by 
correspondents of The New York Times preparing this series of 
articles.

[...]



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