Arctic Sanctuary Sought Around North Pole
The European Parliament today passed a resolution calling for a protected area around the North Pole which could ban oil companies and industrial fishing fleets from the region. The text echoes the demands of an international campaign which has attracted the support of over five million people including Sir Paul McCartney and U.S. oceanographer, Sylvia Earle. The move represents a clear break from the current positions of âArctic Councilâ members such as Norway, Denmark, Canada and Russia who have resisted calls for permanent protection of the Arctic region.
Russia Relying on Offshore for Future Production
Sakhalin Island currently is the oil and gas growth engine for Russia, which will rely on offshore regions for new production after 2010, the Oil & Gas Journal reported. By 2020, offshore fields could account for 20% of Russia's total oil and gas output. However, Russia must implement regulations and taxes before its offshore oil and gas assets can be developed since offshore royalty issues remain largely unaddressed. The Russian Duma is working on the Mineral Extraction Law and on a new subsoil law. The Russian government's anticipated shift to holding auctions for oil and gas blocks instead of tenders now appears unlikely. International oil and gas companies operating in Russia probably will be prevented from taking more than 49% interest in offshore fields.