The Consequences of the Economic Development of Polar and Sub-Polar Regions

Pipeline transportation has been around for many years and is very contributory to the United States transportation system. According to Pipeline101 (2016d), the use of pipelines for oil transport has been around since the 19th century (p. 1). The first pipes only went a short distance, and delivered oil from drill holes directly to tanks or refineries (Pipeline101, 2016d, p.1). As the demand for products increased, so did the pipeline industry. During the 1860s, pipe material changed from cast or wrought iron to steel (Pipeline101, 2016d, p.1). In the beginning of the 20th century, the oil business shift from kerosene lamp oil to gasoline in an effort to keep up with the rise of automobile production (Pipeline101, 2016b, p. 1). After some successful years of business, the Federal government felt the need for involvement and passed the Valuation Act in 1913 as their first attempt in the ratemaking (Pipeline101, 2016b, p. 1). Within twenty years’ crude oil pipes were running across most of the nation (Pipeline101, 2016b, p. 1). Just as things were going well, oil production declined throughout the lower states and the petroleum supply was mostly derived from Canada and overseas (Pipeline101, 2016c, p. 1). Companies in the Gulf Coast, California, and the Mid-West, quickly assisted (Pipeline101, 2016c, p. 1). In 1968 another concern arose, how to transport oil through the frigid mountains of Alaska. After much research and work, in 1977, the Trans-Alaska Pipeline was

With open arctic water, a Northwest passage through the arctic may be a shorter route for commercial ships . More dangerously, many companies, and countries are eager to exploit the resources that are now becoming accessible by the loss of ice in the arctic. Therefore, these changes may provide economic benefits to countries (particularly Canada), corporations, and even indigenous communities in the Arctic. However, all this activity raises the very real risk of environmental degradation and disaster..

The extremely cold temperatures makes it a difficult environment to survive in during the winter, and plants and animals have a hard time coping with any extra stresses and disturbances. More people moving to the tundra to work in the mines and oil rigs have created towns and more roads. Some animal's movements to traditional feeding and denning grounds have been disrupted by these obstacles. When they try to pass through a town they are often scared away or shot. With their feeding patterns disrupted, many polar bears have starved. The Alaskan oil pipeline was built across a caribou migration route. In some places the pipeline has been raised above the ground so the caribou can pass under it. Pesticides have been used to control the hordes of insects. Thousands of migrating birds come to the tundra because of the abundant insects. Through the food chain the pesticides reach many of the animals that live on the tundra.

Prudhoe Bay is a town in the Arctic region of Alaska; it is also called Sagavanirktok. It is a significant industrious economical area because the largest oilfield in all of North America is located in Prudhoe Bay. This does not give economical advances to just Alaska’s economy, but also the country's economy. Prudhoe Bay’s major oil producers are British Petroleum and Phillips; other minor oil companies are Brooks Range, Anadarko, Exxon, and Eni. Prudhoe Bay has an abundance of oil an example of the amount is, in around 1 day 1 million barrels of oil are produced meaning in around 25 years 15 billion barrels of oil have been produced. Gary Hoefs (2002)The Trans Alaskan pipeline System is used to move oil from the North slope to Valdez, Alaska

There has been much controversy when it comes to oil companies in the Arctic over the past few years. The oil industry has invested heavily in the development of Alaska’s Arctic natural resources and Shell has invested $3 billion to purchase leases and prepare for exploratory drilling in the Beaufort and Chuckchi seas (WWF, 2010). Between 2008 and 2010 Imperial Oil Ltd., British Petroleum, Chevron and Exxon Mobil purchased offshore exploration leases in the Canadian Beaufort Sea and the Canadian government continues to sell offshore exploration licenses for Arctic energy exploration (Noble et al., 2012).

Today, oil companies have discovered rich reserves all around the globe, including the Arctic. The

Over the last 60 years, tourism has benefited from continuous growth and diversification, becoming one of the largest as well as the fastest growing world’s economic sectors. Tourism becomes one of the major categories of global trade in services. Nowadays, 7% of global goods and services exports are contributed by international tourism, and for the last four years, it has grown faster than the general global trade.[ Exports from international tourism rise 4% in 2015, (2016, May 6). Retrieved from http://media.unwto.org/press-release/2016-05-03/exports-international-tourism-rise-4-2015]

The current physical and political state of the territory could foster the growth of various industries. The multinational, American-based Royal Dutch Shell Oil Company has already begun drilling in both the Chukchi and Beaufort Seas (Jacobs 2014, 527). In addition, the melted ice has caused increased interest in the commercial shipping, commercial fishing and tourism industries. All of these entities and more are vying for the capital that would come with exploiting the natural resources of the Arctic Circle but the current lack of regulation is having difficulty accommodating everyone.

Banking was over run by the Germans. Trade in the East came to an end with the fall of Constantinople. By the end of the 16th century, economics had shifted from the Mediterranean to the Atlantic with the Spanish discovery of the New World. With this trade shift the worldwide economy was in the makings. In the 17th century mercantilism is very prominent. Things such as state-granted monopolies, regulated exports and imports, tariffs, custom duties, quotas, slavery, colonial taxes, and plantation system were in full effect. By the 18th century, a supply and demand economy had produced. Through mercantilism, state regulations lowered the living standards of workers.

As polar ice in the Arctic region melts, there are many implications associated with it. The melting ice opens up sea lanes, providing access to priceless natural resources, such as the estimated 90 billion barrels of the world’s undiscovered oil (Karaim 336). For the United States, this is a great opportunity. Access to these energy reserves would open up expansion of the oil industry, which advocates of oil drilling say will lead to extensive economic development (Karaim 335) in northern Alaska and the rest of the Arctic region. However, scientists caution that an increase in oil drilling will have destructive effects on the environment. Increased greenhouse gas pollution from oil drilling facilitate global warming, which will melt even more polar ice, absorbing more sunlight and harming vivid Arctic ecosystems. The higher risk for oil spills will harm marine wildlife, which translates to harming the indigenous Arctic peoples. Their diets will be altered, new diseases will be introduced, and the changing of the Arctic land will restrict their rich cultural traditions and lifestyles. Although oil drilling will facilitate economic development in the Arctic, it should not be continued because its implementation is not sustainable for the environment, nor does it improve the lifestyles of the indigenous Arctic peoples.

The rapidly melting Arctic ice cap has created previously inaccessible natural resources and waterways now within the reach of humans. The Arctic represents 6% of the surface area of the Earth yet it is estimated to hold about 22 % of the earth’s oil and natural gas reserves. This places the

In recent years, the United States has been taking the initiative in the Arctic to fix pollution on the earth and prevent future pollution in the environment. This initiative has four pillars: climate change, oil spills, coastal erosion, and alternative energy which are all topics affecting the arctic region of the United States and the world. It is crucial that today’s society pays close attention to the problems arising from these issues causing our environment to suffer; one being the effect that oil spills are having on the arctic region. An oil spill is defined as a presence of somewhat large amounts or layers of crude or refined oil on soil or in sea water (What Is Oil Spill? Definition and Meaning). These spills can spread and affect the ecology, economy, and people of the arctic region. With over 17,000 drilling platforms in the ocean, and more proposed for the future, the risk of an oil spill from drilling sites or accidents when transporting oil is greatly increasing (Fuller, 2010). To prevent future generations from a more polluted environment, research and studies have been done on oil spills, how they are caused, their effects on the ecosystem, and better ways to contain and prevent them in the future.

The majority of the US population lives near the coast, not just because the ocean is beautiful but because the ocean is a major hub of economic activity. The sea provides us with food and livelihoods along every coast of the United States and its territories. Commercial, recreational, and subsistence fisheries bring in many millions of pounds of fish and dollars each year to coastal communities. People also use the ocean and shoreline for a multitude of recreational and resourceful activities that allows one and many to live their daily life. Despite the development of planes, trains, and automobiles, shipping is still the major mode for transporting goods internationally, and many cities rely on their ports as a major source of revenue. The ocean is also valued for the natural resources that lie beneath the ocean floor. In the Gulf of Mexico there exists billions of dollars worth of oil and natural gas. The story of the shipping industry since the first steamships were built more than century ago has been one of ingenuity, professionalism and fabulous profits. Maritime transport encompasses all forms of transport by sea, intermodal links and inland ports but has certain difference from other modes of transport. Maritime economics is not only revolving around transportation, although the largest aspect of maritime economics; oil, natural gas, and mineral exploration all play an unprecedented amount in the worlds economic. 70% of the world is covered in water, 80% of

Even the important contribution of Chapter 2, the proposed analysis requires a deeper study to understand the implications related to oil trade and how the expected oil production will be consumed by the demand. Considering only Canada for all the expected oil production from the Western provinces doesn’t seem enough. To achieve the forecasted production levels, producers of Western Canadian oil must find a market that values their oil at reasonable price. Without access to seaports, Alberta and Saskatchewan need to develop their transportation capacity to export this expected production. The challenge related to the increasing availability of Western Canadian oil and its distribution to domestic and international markets is imminent. Indeed, uncertainty in oil reserves and production implies uncertainty on future trade movements, and consequently, on oil corridors. It is now becoming a political, economic and national security matter that this oil finds access to other markets and export opportunities (McKenna, 2013). As for their actual markets, maintenance on existing pipelines and the necessity of upgrading refineries to process this crude oil from Western Canada create bottlenecks upstream that increase the constraints to allow the expected growth.

Competing with its neighbor to the south, Canada has become a strong contender in the global market, making the country one of the most sought after places to live. It is one of the fastest growing developed countries in the world. With major emphasis on lenient immigration and foreign direct investment, Canada’s private-sector and public infrastructure has grown tremendously over the past few decades. One interesting aspect of Canada’s private sector is its special terrain that offers abundant oil and natural gas. According to the Central Intelligence Agency (CIA, 2017), Canada now ranks as third in the world in proved oil reserves and the majority of the crude oil production comes from oil sands in the western provinces.