Greenland and Oil
Saturday, 24. October 2009, 14:54:00
So-called self-government began in Greenland on 21 June 2009. Greenland wants, fair enough, more independence to explore its own natural resources. On the other hand it needs to exploit the same natural resources to “buy” more independence. Is this a vicious circle?
Roughly 76 percent of the voters in a referendum in 2008 wanted greater self-rule; on June 21 2009, they got it. But as part of that self-rule deal, Denmark will end up reducing its annual subsidy to Greenland—about €7.300 per person, representing about 60 percent of the island’s budget. Hence the high hopes for oil revenue. Some estimates, including those of the U.S. Geological Survey, suggest Greenland’s coastal waters could hold anywhere from 16 billion to 47 billion barrels of oil, or 800,000 barrels for every man, woman, and child.
The race has begun. 13 oil firms have been pre-qualified for the first license round for 14 enormous blocks in the Baffin Bay area off the west coast of Greenland. A second round is planned for 2012.
The water depths are typically 300-400 metres, not particularly deep by today’s standards, but the wells are still expected to cost about 67 million € a time, and drilling is likely to be confined to the summer months. After all it is still a bit dark, cold and rough in the Arctic winters.
Where will the money go? and what will the impact be on the pristine environment?
In Danish:
Roughly 76 percent of the voters in a referendum in 2008 wanted greater self-rule; on June 21 2009, they got it. But as part of that self-rule deal, Denmark will end up reducing its annual subsidy to Greenland—about €7.300 per person, representing about 60 percent of the island’s budget. Hence the high hopes for oil revenue. Some estimates, including those of the U.S. Geological Survey, suggest Greenland’s coastal waters could hold anywhere from 16 billion to 47 billion barrels of oil, or 800,000 barrels for every man, woman, and child.
The race has begun. 13 oil firms have been pre-qualified for the first license round for 14 enormous blocks in the Baffin Bay area off the west coast of Greenland. A second round is planned for 2012.The water depths are typically 300-400 metres, not particularly deep by today’s standards, but the wells are still expected to cost about 67 million € a time, and drilling is likely to be confined to the summer months. After all it is still a bit dark, cold and rough in the Arctic winters.
Where will the money go? and what will the impact be on the pristine environment?
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http://www.theatlantic.com/doc/200911/kucera-greenland
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http://blogs.ft.com/energy-source/2009/10/15/greenland-the-new-new-oil-frontier/
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http://bx.businessweek.com/world-economy/view?url=http%3A%2F%2Fblogs.ft.com%2Fenergy-source%2F2009%2F10%2F15%2Fgreenland-the-new-new-oil-frontier%2F
In Danish:
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http://www.dr.dk/Nyheder/Penge/2009/10/23/080336.htm?rss=true
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http://borsen.dk/investor/nyhed/168586/newsfeeds_rss/
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