The Arctic is heating up as an economic no-man’s land, with climate change instigating a change in the way businesses and nations see the ocean to the north. The five Arctic Nations, Russia, Denmark, the United States, Canada, and Norway, are all currently upgrading their individual military outfits in the region in preparation for an inevitable showdown between them to determine who will get what in terms of transportation rights and energy resources. With the possibilities of an estimated 25% of the world’s undiscovered oil and an ocean route that could literally shave thousands of miles off of traditional trade routes, the stakes are high and continue to rise.

A timely combination of technological advances and environmental change have come together to make the possibility of petroleum retrieval in the Arctic Ocean a reality; better sensing and drilling equipment and ships capable of breaking through ice more easily arrived at the same time that global climate change began warming the frozen north, at least enough to make mining for resources more feasible than it had been in the past. With increased oil and gas activity in the area comes an increased likelihood of accidents related to the industries, warn activists, noting that oil is notoriously harder to clean up in icy waters and that the contaminants take longer to decompose in colder water than elsewhere. With all five states making claims to the energy resources in the area and international demand constant, the debate over whether or not to drill is quickly becoming eclipsed by the question of how much each nation will be entitled to when it inevitably begins.

The arguments regarding shipping rights in the region are escalating as well, with the freeing up of the northeast and northwest passages and rising debate as to who is in charge of maritime regulation in those waters. Authority over passage in the waters has not been established and as the melting accelerates more nations become anxious to use the routes now available to them. China has been particularly active in lobbying for the use of the new routes, wanting to use them to transport cargo on giant container ships. Iceland sits on the edge of the Arctic Sea and is situated as an ideal spot to transfer cargo to and from the very large container ships; it also is up for election to the United Nations Security Council in 2008, a council that counts China as a permanent member. China also operates the largest embassy in Iceland, which leads many to believe two nations will support each other, with China gaining trade and Iceland strengthening its U.N. bid.

Two of the five nations have already declared the right to regulate transportation in the Arctic, with Russia claiming the North East Passage and Canada the North West. Both nations cite the Law of the Sea Convention to justify their claims. The Convention, which has not been ratified by the United States, would have to be debated within the U.N. in order to determine precisely what it does indeed specify, which has the countries scrambling to put together compelling arguments to present to the General Assembly.

There is still concern over environmental hazards posed by greater economic activity in the region, with many wondering what the effects of frequent traffic, greater levels of pollution, and a disruption to the native ecosystems will be on the area overall. Without some sort of regulation over shipping in the Arctic an accident seems inevitable and many are looking to a new American administration that they hope will be more concerned with environmental issues to help solve the problem.