Arctic exploration creates new alliances

The bleak and barren landscape of Europe's Arctic north belies the glittering glory of the oil and gas riches hidden in its underbelly. The rapidly retreating Arctic ice cap is believed to contain a quarter of the world's petroleum resources. After the Cold War ended, armies of engineers and scientists, ship crews and oil workers begun to arrive. Their search could change the entire power balance in a global economy where access to petroleum - that is oil and gas - is key.

Norwegian energy giants Statoil and Hydro and their Russian counterpart, state-controlled Gazprom, have signed a memorandum of understanding. Along with Total, Chevron and Conoco, the Norwegian groups are particularly keen to be selected as partners in a Gazprom-led consortium that is preparing to construct the Shtokman field in the Barents Sea, set to become the world's largest offshore gas field.

Russia and Norway, which have cornered much of Europe's oil and gas markets, hope to become major suppliers to North America too. A tanker leaving Murmansk could reach the North American coast in just over a week, compared with journeys sometimes three times as long from the Arab gulf. Gazprom is preparing to put 15 tankers into service to transport LNG to the US market. Given that Gazprom is 51% controlled by President Vladimir Putin's government, the significance of the company's growing role as a leading global energy group will not be lost on diplomatic circles, where money and power go hand in hand.

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