Russian Arctic Claims

Russia continues to be the country possessing the largest proven natural gas reserves on the planet as well as the largest exporter of oil after Saudi Arabia. The mismanagement of their resources combined with limited technology has rendered may of their vast resources unsalvageable with their continued denial of foreign intervention further limiting successful extraction efforts. Current projected estimates show that Russia’s large reserves, with no expansion or increased operations are dwindling, and will be nearly tapped by 2030. Instead of asking for assistance from highly experienced and specialized foreign oil outfits, Russia has instead opted for increasing their range by laying claim to a disputed 460,800 square mile swath of ice-covered Arctic seabed estimated to hold billions of unproven hydrocarbon reserves.

In 2001, Russia issued documents before the United Nations claiming that the Lomonosov Ridge, making up a large portion of the Arctic Ocean’s seafloor, was actually an extension of the Siberian continental shelf and should be recognized as part of Russia, theirs to explore and exploit. The 1982 International Convention on the Law of the Sea established a zone of twelve miles off of all coastal countries and an even further reaching 200 mile economic zone for each country to have exclusive rights for drilling and exploration. Russia’s claim to the Lomonosov Ridge extends far beyond this 200 mile economic zone however, and the United Nations has thus far denied their claims.

Russia continues their exploration of the Arctic in hopes to show the United Nations that they deserve to explore and begin drilling, for the rewards could be immense. In order to extend their 200 mile economic zone, Russia must prove the structure of the continental shelf of the ridge is similar to the geological structure of the underwater landmass extension within their territory. The lure of the ridge has to be its estimated 10 billion tons of untapped reserves. These reserves would provide Russia with the boom necessary to continue to flex its might as one of the world’s most powerful natural resource holders. Not only would the petroleum and natural gas extracted help provide the energy needs of their citizenry, but the monies collected from exports would be tremendous as worldwide supplies continue to diminish and the price of oil continues to increase.

The United States and Canada are watching ever so closely, hoping Russia’s claims are denied once again. Perhaps the United Nations will equally divide the Arctic giving drilling rights to all bordering countries. Until then, large natural gas and oil companies like Triple Diamond Energy Corp. will continue to develop new techniques for drilling deep beneath snow and ice in order to extract the bounty beneath.

About the Author: Robert Jent is the president of Triple Diamond Energy Corp. Triple Diamond Energy specializes in acquiring the highest quality prime oil and gas properties. For more information, visit http://www.triplediamondenergycorp.blogspot.com.