US Lawmakers: Ban On New Arctic Drilling Gives Canada Leg Up

US Lawmakers: Ban On New Arctic Drilling Gives Canada Leg Up
US lawmakers slam Arctic drilling ban, saying Ottawa's plan to review its ban every five years gives Canada a leg up on energy exploration.


OTTAWA, Dec 21 (Reuters) - U.S. lawmakers on Wednesday slammed an agreement made with Canada to ban offshore Arctic drilling, saying Ottawa's plan to review its ban every five years gives Canada a leg up on energy exploration.

U.S. President Barack Obama on Tuesday announced a ban on new oil and gas drilling federal waters in the Atlantic and Arctic Oceans, while Canada instituted a similar ban in its Arctic waters.

Unlike the United States, where the ban is indefinite, Canada said it will review its restrictions every five years.

Alaska Republican Senators Lisa Murkowski and Dan Sullivan and Representative Dan Young called the joint announcement "an incredibly lopsided trade for the United States."

"With Russian development already underway in the Arctic, it may be just a few short years before our nation is bracketed by activity on both sides and importing the oil resulting from it," the U.S. lawmakers said in a statement.

Environmental groups said that incoming President Donald Trump would have to go court to reverse Obama's ban. The American Petroleum Institute oil industry group said Trump could likely use a presidential memorandum to lift it.

There is currently no crude oil production in the Canadian Arctic. A number of companies including Chevron Corp, ConocoPhillips and Imperial Oil Ltd hold exploration licenses, but all three have put their drilling plans on hold, partly because of weak global oil prices.

With Russia's uncontested area accounting for about 50 percent of Arctic waters, the ban probably will not spark additional territorial claims, said Michael Byers, professor at the University of British Columbia.

"Russia has an awful lot of area to explore and exploit on its own without having to even think about encroaching on neighbors," Byers said.

The ban will also delay the need for Canada and the United States to settle a boundary dispute in the Beaufort Sea as there will not be any pressure from companies to do so, Byers said. He noted that no country contests Canada's rights to a 200 nautical mile-wide economic zone along its Arctic coastline.

"By adopting the moratorium, Canada is exercising its sovereign power over those waters and the ocean floor," said Byers. "It's not an abdication of sovereignty but a reaffirmation of it."

(Reporting by Leah Schnurr and Andrea Hopkins; Editing by Lisa Shumaker)

Copyright 2017 Thomson Reuters. Click for Restrictions.


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
Scott Southerland | Dec. 22, 2016
I think it wont matter after Obummer is gone in January! He will be relegated to history, an unpleasant one but one worthy of at least a paragraph in modern history books and studies! You will witness next month just how little respect this little crack head gets when hes gone for good thankfully!


Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
Survey Project Manager
Expertise: Landman|Project Management|Surveying
Location: Corpus Christi, TX
Foreman Fleet Operations
Expertise: Logistics Management|Operations Management
Location: Midland, TX
Environmental Inspector
Expertise: Environmental Engineer|Regulatory Compliance
Location: Williamsport, PA
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours