All’s Fair in War and Oil

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They say all’s fair in love and war.

I say all’s fair in war and oil.

When it comes to digging for “black gold,” any stretch of land, water, or ice is fair game.

You can go from the deserts of Saudi Arabia to the dry dust of West Texas to the waters of the coastline to find this vital fuel…

Not to mention the cold desert of the Arctic.

It’s long been known that the Arctic holds oil frozen under its icy top layer, and getting to it is quite the challenge.

More so, even, than extracting oil out of the waters of the ocean.

The Arctic region encompasses 19 geological basins – only half of which have been actually explored.

In 2008, the United States Geological Survey estimated that there are 90 billion barrels of undiscovered, recoverable oil in 25 identified areas in the Arctic – 13% of all the undiscovered oil in the world.

Now, despite the challenges of the region, many nations around the world are determined to take control of this land and its abundant natural resources.

Which leads to some increasing tension, adding to the existing conflict I’ve discussed many times here in Oil & Energy Investor.

The Arctic situation has remained fairly stagnant for the last several years, at least compared to other areas of oil exploration.

But a move by one of America’s energy rivals has brought it back onto the map of world tensions…

I’m talking, of course, about Russia.

New Drones, New Technology

The United States and Russia have had a long and colorful history together.

An alliance during World War II escalated into a firm rivalry during the Cold War, and relations between the two never truly warmed back up to pre-Cold War levels.

And these days, Russia has been in the news regarding U.S. relations more so than usual.

But it’s what they’ve announced recently that has my attention.

Last week, Russia unveiled two drones – the ZALA 421-08M and ZALA 421-16E.

What makes these drones unique is that they don’t rely on GPS, and are designed to gather information about a vessel from 100 kilometers away.

Must See: The Defense Industry Is a Gold Mine – You Can’t Afford to Miss This $6 Company…

And they’ve been deployed to the Arctic to spot ships approaching oil and gas facilities in the region.

This is only the latest in a string of increased military involvement in the Arctic.

And according to Samuel Bendett, an analyst at the Center for Navel Analyses’ International Affairs Group, “Russia views the Arctic as an area vital to its national security – for the defense of the nation, for the economic development, and for environmental factors.”

Back in March, Russian President Vladimir Putin asserted his country’s claim to the oil underneath an Arctic glacier, saying “Natural resources, which are of paramount importance for the Russian economy, are concentrated in this region.”

In other words, he has every intention of drilling what he claims to be $30 trillion worth of oil in the Arctic region.

But Russia is going to have to fight the United States for it.

Among others.

Now, some of you may notice that this situation is eerily similar to another fight for resources in another, much warmer, climate…

The Profits in Conflict

If you guessed the South China Sea, you’d be right.

Because oil has the curious effect of bringing out the worst in certain countries, I’m not altogether surprised that the two regions are subject to the same conflict.

Coast Guard Admiral Paul Zukunft said of the situation, “Russia has claimed most of the Arctic Ocean, all the way up to the North Pole and as a signatory of the Law of the Sea Convention has filed this claim.”

The 1982 Law of the Sea establishes nations’ maritime rights and responsibilities.

It’s also the agreement that the Philippines used against China for violating its territorial claims in the South China Sea.

So what we’re seeing with Russia in the Arctic seems to mirror what we’ve been seeing with China in the South China Sea.

Except the South China Sea situation is a bit more alarming, at least for the United States.

Because the Chinese have been getting more and more aggressive in what they perceive to be their rightful territory – and their rightful claim to the natural resources beneath it.

However, the United States has never been a country to back down in the face of aggression, no matter who’s doing it.

Which is why the White House has announced that “we will not be intimidated.”

And we won’t, especially with this new technology we’ve been developing that could stop China’s assault in its tracks.

If you’d like to learn more about this development – and learn how to potentially profit from it – just click here.

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