Greenland Offshore Oil Rush Fuels Hope and Concern. By Marianne Stigset, Bloomberg, May 5, 2010. "Cairn Energy is betting $400 million this year on striking oil off Greenland, a campaign that will be closely watched by producers such as Exxon Mobil Corp. and Chevron Corp. that hold rights off the island. The potential rewards may justify the cost of Arctic drilling: Greenland's waters could hold 50 billion barrels of crude and gas, the U.S. Geological Survey estimates, enough to meet Europe's energy demand for almost two years. More companies are on the way. Royal Dutch Shell Plc and Statoil ASA were among bidders in this week's auction of offshore drilling rights. After six failed attempts by explorers in Greenland over the past 30 years the rush is on as global warming eases Arctic exploration and because of dwindling resources in areas such as the North Sea. For Greenland's 56,000 inhabitants, largely dependent on shrimp exports, petroleum may also bring wealth and allow more independence from Denmark, which has held sway over the world's largest island since 1721.
"The far north's potential is spurring exploration from Russia to Alaska. The Arctic may hold 27% of the world's undiscovered gas and 13% of the oil, the USGS said in 2008. Areas off Greenland, including some shared with Canada, may hold 17 billion barrels of oil, 148 trillion cubic feet of gas and 9.3 billion barrels of gas liquids, the USGS said. Highlighted by the unfolding disaster in the U.S. Gulf of Mexico from a BP oil spill, exploring in untouched, environmentally fragile waters home to whales and walruses isn't without risk. According to the WWF, development and transport are 'already serious threats' to the Arctic and has met opposition and kept areas off limits from Alaska to Norway."
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