More oil becoming available as Arctic ice recedes
Exxon makes deal with Russia to explore for oil in the Arctic Ocean, which due to global warming, is more accessible than it was 10 years ago.
Story from The Takeaway. Listen to audio for full report.
Alaskan waters remain off-limits to drilling, much to many oil companies' dismay. But Exxon has decided to hop over the Bering Strait, and make a deal with Russia to explore for oil in the Arctic Ocean in their territory. This deal may show how lucrative climate change has become to the oil business, since more oil is becoming available as Arctic ice recedes.
Lisa Margonelli, director of the Energy Policy Initiative at the New America Foundation, thinks this is an important deal because it shows a significant shift from natural gas back to oil.
The deal could also reflect concerns over the turmoil in the Middle East.
"Oil companies have put a lot of money in the Middle East and they’re seeing the political situation shift change there," Margonelli said. "That makes places like Russia look less risky."
And, because global warming has made it easier to access that part of the Arctic.
"Now you could actually think about going in and drilling, which ten years ago was pretty much unthinkable," Margonelli says.
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