Sunday, July 15, 2007

Arctic melt sparks territorial disputes over oil, gas
So you think the Bush Administration, Russia and Canada aren’t focused enough on Global Warming? Think again. They’re definitely interested in the fast-melting Arctic – and salivating at the thought that 25% of the world’s oil and gas reserves may be there under the ice. The region also is rich in minerals like gold, diamonds and maybe uranium.

The three countries are scrambling to advance their interests as retreating ice – melting at twice the rate predicted – promises to change the geopolitical equation as it open up the area to oil and gas exploration and to shipping. As one U.S. Navy officer said, “This is the greatest unexplored bastion on the Earth.” The Arctic is losing more than 7% of its summer ice each decade, and the temperature there has risen 5 degrees in the past 30 years.

In recent weeks, all three countries have asserted their authority over parts of the area:
• In late June, Russian geologists returned from 45 days of Arctic exploration and proclaimed their right to an underwater ridge the size of France, Germany and Italy combined.
• Last week, the Canadian Prime Minister said Canada is converting 6 to 8 military ships to icebreakers to patrol and protect sovereignty over the Northwest Passage, which at this rate may be open to shipping year-round by 2050.
• Also last week, U.S. scientists, the Navy and Coast Guard held a 3-day meeting to map American strategy for the Arctic.

Who owns what
The U.N. Law of the Sea Convention gives the 5 Arctic countries surrounding the North Pole – Canada, the U.S., Russia, Norway and Denmark (through its territory, Greenland) an economic zone of 200 nautical miles off their coastline. This can be extended if a country proves the structure of the continental shelf has similar geology to their territory, which is Russia’s claim for the massive Lomonosov Ridge, which it estimates holds more than 1,000 metric tons of oil and gas. The Law of the Sea treaty also governs environmental regulations in common waters.

Under the convention, no one owns the North Pole itself.

Disputes over sovereignty
There have been, and continue to be, disagreements among countries over who is entitled to what, and that is heating up as the value become more apparent. The United States is at a slight disadvantage because it never ratified the Law of the Sea Convention, due to opposition from a handful of GOP lawmakers.

For the neophyte this all can be a bit confusing, because the disputes involve three seas, all starting with “B” – Barents, Bering and Beaufort.

• All the countries have disagreed with Canada over its claim to the Northwest Passage, parts of which border on the other 4. The passage will become increasingly important as the ice melts, for it can cut about 3,000 miles off a trip from England to Japan.
• Norway and Russia have had disputes about rights in the Barents Sea, which separates them, though they are now working on a natural gas project there together.
• The U.S. and Canada disagree about resources in the Beaufort Sea.
• Canada and Denmark both claim tiny Hans Island off Greenland, and each lands there periodically to plant its national flag.
• Denmark has tried to claim the North Pole as an extension of Greenland, and Stalin once proclaimed it was part of the Soviet Union, but the U.N. says it is international.
• Russia and the U.S. worked out an agreement dividing the Bering Sea, between Siberia and Alaska, but the Russian Parliament refused to ratify it, believing they were losing territory.

Renewed interest
But most of these disputes have been fairly dormant. Only recently have the countries surrounding the North Pole realized its enormous value in a warming world. In 2001, Russia submitted a claim to the U.N. for the Lomonosov Ridge that was rejected. Now, however, Russian scientists may have the data to back up their claim, though some say Canada could make a similar argument. Russia also is newly re-asserting its right to the Northwest Passage, because parts are within its coastal borders.

In response, Canada announced last week it will patrol the Passage to prevent trespass in its Northern Territories. And the U.S. Navy said it will increase its presence there.

Conditions remain harsh for drilling – with darkness and extreme winter storms that prevent the use of floating platforms – but as oil and gas become harder to find elsewhere, the intensity of the rivalry for this territory has the potential to become explosive.

The U.N. sees itself as the arbiter among disputing parties in the Arctic, but some say there needs to be a solid, long-term agreement among the countries, as there is with the North Sea. And environmentalists are rightfully concerned about the ecological damage that can be done. Already, fisheries are moving north because of the warming. A crush of commerce and drilling could further damage the area if someone isn’t setting the rules and monitoring them.

"If there is to be an international regime in the Arctic, it's time to think about that," Mead Treadwell, head of the U.S. Arctic Research Commission, said last week.
(Sources: E&E News PM, Greenwire, BBC, Guardian UK)


Congressional round-up

*Majority Leader wants fuel-economy in final energy bill
House Majority Leader Steny Hoyer (D-Md.) pledged last week that corporate average fuel economy (CAFE) would be in any energy bill that goes to the president. While the Senate passed a bill requiring 35 mpg by 2020, House Energy Chair John Dingell (D-Mich.) has said he wants to delay CAFE in the House until fall. But Rep. Ed Markey (D-Mass.) is poised to introduce a floor amendment similar to the Senate bill, calling for 35 mpg by 2018. Dingell, an auto company ally, said he prefers the weaker Hill-Terry bill that would increase mpg more slowly and pre-empt state tailpipe emissions laws. Hoyer suggested he might wait and iron all this out in conference. A Union of Concerned Scientists analysis said the Markey bill would save consumers $61 billion, boost jobs by 241,000 and cut oil use by 1.6 million barrels a day by 2020. (Sources: E&E Daily, E&E News PM)

* Bingaman, Specter offer cap-and-trade bill in Senate
Senate Energy Chair Jeff Bingaman (D-N.M.) and Sen. Arlen Specter (R-Pa.) announced a bill last week they said would satisfy both environmentalists and economic interests. S.B. 1766 would launch a cap-and-trade system in 2012 modeled on the EPA one that curtailed acid rain. It would cut greenhouse gases from power plants and other energy-intensive industry to 2006 levels by 2020 and to 1990 levels by 2030. Co-sponsors are Sens. Tom Harkin (D-Iowa) and Daniel Akaka (D-Hawaii), and the two Republic senators from Alaska, Lisa Murkowski and Ted Stevens. The latter said they signed on because the bill would help Alaska adapt to climate change already taking place. Several large utilities and labor organizations back the plan. Some environmental groups objected to a “safety valve” to hold down the price of carbon credits, as did House Environment Committee Chair Barbara Boxer (D-Calif.), to whose committee the bill was referred. Already working cap-and-trade for that committee are Sens. Joe Lieberman (I-Conn.) and John Warner (R-Va.). Bingaman, who’s been working 3 years on his bill, said he hoped his provisions would be included in the Lieberman-Warner package. (Sources: E&E Daily, E&E News PM)

* Dingell to float steep carbon tax, expecting it won’t fly
House Energy Chair John Dingell (D-Mich.) said on CSPAN he will propose a big tax on gasoline and burning of other fossil fuels to show the public doesn’t want to pay the price to reduce Global Warming. "I sincerely doubt that the American people are willing to pay what this is really going to cost them," he said. Most Democrats think the idea of a carbon tax is politically untenable, though economists say it would be the simplest way to curb GHG emissions. In 1993, President Clinton tried a BTU tax on energy, which passed the House but failed in the Senate. Many think it contributed to the change in leadership the next year in the House. Dingell has also proposed a cap-and-trade system, which many in both parties favor. (Sources: New York Times, Greenwire)

* Electric utility trade group contributes to Dingell coffers
The Edison Electric Institute held a fund-raiser last week for Rep. Dingell, 81, who is the longest serving congressman and is expected to run for re-election in 2008. Since 1989, he has raised close to $1 million from electric utility PACs and individuals, according to E&E News PM. As chairman of the powerful House Energy Committee, he is a key player in any Global Warming legislation. (Source:
E&E News PM)


Do something

Time is running out for the House to pass strong Global Warming legislation before the August break. Support the Markey-Platts fuel economy bill (HB 1506) and the Udall-Platts renewable energy bill (HB 969) by going to http://www.ucsaction.org and clicking on “Take Action Now.” Or, better yet, call your representative through the Congressional Switchboard at (202)224-3121. Markey-Platts is similar to the CAFE bill passed by the Senate and Udall-Platts calls for power plants to produce 20 of their fuel from renewables by 2020. The Union of Concerned Scientists and Sierra Club both support these bills. Udall is a Democrat from N.M., Platts a Republican from Pa.

Take the pledge. If you haven’t done so already, join the millions all over the world who have signed the LiveEarth pledge. Go to http:algore.com/pledge.

If you live in the Chicago area or plan to visit, make sure to see the Cool Globes outdoor art exhibit along the lakefront from Navy Pier to the Field Museum. Each is by a different artist and suggests a way you can help fight Global Warming. To pay a virtual visit, go to http://www.coolglobes.com/globes_gallery2.htm. It’s something other cities may want to do. For more info, see http://www.coolglobes.com.


News briefs

1. Efficiency alone could cap U.S. GHG at current levels by 2020
If the United States were to become as energy efficient as Western Europe and Japan, efficiency alone could put GHG emissions at 2006 levels in 2020, says a new study by the McKinsey Global Institute. Americans emit twice as much CO2 as residents of Western Europe and Japan, with most of the waste in homes and transportation, the study says. Driving in the U.S. requires 37% more fuel than in Europe because of bigger autos and less efficient engines. Also, homes are bigger, with less insulation, inefficient lighting, and larger, less efficient appliances. Using existing technologies, the U.S. could cut residential energy use 30% by 2020, the study says. Industry could do more, as well, with heat recovery and motor-driven pumps and compressors. The study advocates policy changes and increased public awareness. (Source: Greenwire)

2. N.J. and Florida, take strong stand against Global Warming
New Jersey Gov. Jon Corzine (D) last week signed the strictest greenhouse gas bill in the nation, requiring a cut of 16% by 2020 and 80% by 2050. The law also called for better public transit and more shipping of goods by train. The largest utility, Public Service Enterprise Group, supported the law, but some warned it could be hard to enforce because N.J. has few renewable energy sources. In Florida, the state’s new governor, Charlie Crist (R) issued an executive order reducing CO2 emissions to 1990 levels by 2025 and then cutting them 80% by 2050. He also mandated adoption of California’s auto standards. Starting with the 2009 models, cars would have to cut emissions 25% and SUVs 18%. In addition, Crist ordered that utilities must cut GHG 20% (from 1990 levels) by 2050 and produce 20% of their energy from renewables. The Florida governor apparently can take these steps without legislation because they strengthen previous regulations. (Sources: Greenwire, PlanetArk.com)

3. Britons flying less, taking the train more on local trips
Train travel from Manchester to London was up 18% so far this year, while domestic air travel at the Manchester Airport fell almost 9%. Fear of terrorism and tight security that slows down boarding are two reasons for the shift, authorities say. A failed airline plot in April made Britons jittery. And now there’s been a second attempt at Glasgow Airport. Also, people are increasingly concerned about the environmental impact of air travel, which emits somewhere between 4 and 10 times the CO2 of trains. And if that concern wasn’t enough, now they feel it in their pocketbook. New Prime Minister Gordon Brown, then finance minister, doubled the airline tax in February to cut GHG emissions. As more take the train, they’re seeing improvements. Trains are sleeker and faster and some provide WiFi. A potential north-south high-speed link could persuade even more to take the train, as is the case in other European countries. (Source: PlanetArk.com)

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